Markets which don't offer good income producing rentals
I am new to REI. I live in Seattle and am interested in buy and hold. My market has variable price points of entry...for those who know the area, comparing Alki Beach to Renton/Burien.
It seems that rents and property values diverge as the numbers go up (moving below the 1% rule). Is this market dependent or more consistent across the country?
This article below got me wondering if rental income producing properties are a less viable option for us.
I appreciate your thoughts.
http://seattlerealestateinvesting.com/why-you-shouldnt-buy-seattle-real-estate#
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That article is terrible for a variety of reasons and I think it is not the case that this area has no income producing rentals. They are harder to find and not getting easier lately with inventory down but they are out there.
That being said I am considering other markets and the reason for that is that to achieve similar cash returns here, requires more cash to get in. For what I put down on my last house, there are markets where I could own the house outright and make equivilent cash flow.
I would never invest in an actual Seattle home because they will never cash flow, but if you look on the outskirts, like you mention Renton you'd probably be able to find some decent things.