What Are Best Rental Markets in U.S.??

Question

I live in Ohio and I believe between Columbus and Cleveland, the rental markets are very good. What do you think the best rental markets are in the country?

Geof Greeneisen · Answer

What's your criteria; ROI? Demand? Potential appreciation?

Account Closed · Answer

hi James Hamling,

just wonderg... did u mean u cud accurately asses home value for a property or for a neighborhood (or greater area) or both within a 3% margin of error? or did u mean u cud predict when the market will correct for any given area and at what % of price/value?

I can't see how it cud b the latter question...right?

however, if u strictly mean trending for a specific market/area, that's nothing new there.. unless I'm misunderstandg ur statement/claim...

wud appreciate any clarification/enlightenment if u can... thx!

James Hamling · Answer

"market vectoring" is a term to define market direction and velocity.

And yes, I know, I have heard it many times "no one can predict that with a formula and accuracy".... well guess what, I can, do, and have within a margin of error of less than 3%. And yes, repeatedly, in varying areas, varying home types. So far only SFH.

My stupidest move was to show it and test it on some associates properties..... now I get e-mails all day long to run a property, two, three, ten......

James Hamling · Answer

I may be in a unique area, but a major factor I use now in my evaluations I coined "market vectoring". In the last 12 months we have seen properties gain as much as nearly 30% in value from zero improvements, just the rubber band effect. Like I said this is in very certain focused areas, but it is really nice to see some areas having market corrections in the positive rather than the negative finally.

Fred Maul · Answer

My belief is Tampa.  Low prices and decent rents.

I can back this up with the following reference.  If a large hedge fund with people way smarter then me see the same potential, then I think I am looking in the right place.  :)

http://www.tampabay.com/news/business/blackstone-groups-says-its-looking-at-tampa-bay-for-rental-properties-but/1252829

Michael Lauther · Answer

Dayton Ohio, low income area cost including Rehab 25K rent avg 600 month, taxes under1000, insurance 600 the other numbers you can estimate based on 50% rule. Rehabs are predominantly cosmetic. Tenants drawn from Section 8 and Air-force base that is Key to economy. 
More expensive properties 30k  to 60k with similar numbers and many duplex look profitable but i am not currently in that segment of the market.

I am assuming  higher numbers on  acquisition because  I see an increase in recent activity and selling price My actual costs has been closer to 20K not 25 k. but we are generating close to 15% cash on cash ROI with no leverage and not looking at appreciation.

This is a cash flow buy and hold market.

Ed L. · Answer

Read a article today saying the average cost to own in Detroit was 350ish and the average rent was approx 1200.

It was a article on trulia discussing places that are cheaper to own vs rent.

Alex Price · Answer

So I guess now we need to add price and area into the equation. This will become very ambiguous for all. How about we focus on rate of return (price/rent). Right now very few markets are appreciating and price is not as important as return. Let's say 10 - 15% ROI net rental income as focus. So with this, what are great areas to buy rental property. I nominate Cleveland and Columbus, OH.

Nick Richardson · Answer

I don't believe $100,000 for a house that should bring in $1,200 or more a month is a bad deal. As for finding better deals there are much better out there. The $100,000 was just a number I put as I was typing. There are some homes that are selling in the mid 50's and up as recent as two weeks ago. 4 bed, 3 bath, 2,013 sq ft in a good area just sold for $56,000.

We also have 2 bed, 2 bath condos selling for anywhere from $20,000 to $50,000 depending on the area. These are not dumps (some are yes but not all) many are very nice units in very good areas.

James Hamling · Answer

I would really like to hear from everyone if this quoted standard is a kind of universal bar for what is really good?  Because if so....... well I am better at finding them then I thought I was. I try to hold to the 2% rule, and no not all exactly fall in that but I have been getting some even better then that, and never touch any over .o15.

I am local so I would like to hear from others

What Are Best Rental Markets in U.S.??

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