The Best and Worst Places to Invest in SFR in America

[Marcella Hoard]

The single-family home rental business is less profitable this year compared to last year across most of the country with yields decreasing due to increases in cost of living. That is why it is more important than ever to be selective about where to invest. Our clients tell us that they appreciate how we help them assess market risks and profitability.

I wanted to share an article regarding the best and worst areas to invest in single family homes in America. A summary of the article is below. 

-Some of the best locations for SFR investments and metros with the strongest yields in 2020 include Baltimore, Dallas, Fort Worth, Cleveland, Columbus and San Antonio.

-Metros with the weakest returns in 2020 include Nashville, San Jose and the San Francisco Bay area.

https://www.millionacres.com/real-estate-market/articles/these-are-the-best-and-worst-places-to-buy-a-single-family-rental/

[Jim K.]

Originally posted by @Marcella Hoard:

@Mike Dymski I appreciate your response. It's true that yield is not profit. The concern is when the yields go down and your costs go up, profitability becomes more difficult. As far as rising home prices, that's going to be great for investors who already own properties. For those who are looking to invest, selectivity is going to be key!

The maniacal focus we see here on BP on finding the very best place to invest long-distance is a product of the platform's structure and the real estate business as a whole. It's much more important to find the right people to invest with. I invest locally in Pittsburgh, and I could not imagine giving up the contacts and relationships I've cultivated over the years because the county next door has slightly more landlord-friendly laws and ordinances.