Despite falling rents and rising vacancies, the profitability of residential rental property is improving.
Investments in apartment complexes are generating annual returns of 7-8 percent immediately because purchase prices have declined.
Buying a rental property isn’t for everyone. It requires putting down at least 50 percent in cash because banks are reluctant to lend more. And buyers need to be able to hold the property for at least three to five years or more to give the investment time to gain value.
Local Market Monitor, which analyzes real estate investments, identifies these good and not-so-good markets for landlords:
Good Markets
Columbus, Ohio
Washington, D.C.
Raleigh, N.C.
Greenville, S.C.
Columbia, S.C.
Kansas City, Mo.
Oklahoma City, Okla.
Fort Worth, Texas
El Paso, Texas
Bad Markets
Detroit
Cleveland
Wilmington, Del.
Dayton, Ohio
Orlando
Tampa-St. Petersburg
Boise, Idaho
Stockton, Calif.
Las Vegas
Phoenix
Source: The Wall Street Journal, M.P. McQueen (02/20/2010)
CHAD ELLIOT, REALTOR© The Hennepin Group, LLC Keller Williams Realty 17205 Yale Street NW, Suite D Elk River, Minnesota, 55330 | Mobile: (651) 795-1147 Fax: (763) 241-0187 Email: chadelliot@kw.com | |
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