- A number of investors have achieved significant returns by buying, fixing and flipped distressed homes
- Single-family rental housing remains at a premium in Miami
- Miami edged out Houston for the number three spot nationally
Spanning 2014 to early/mid-2015, Miami offered single-family rental investors some of the best total returns in the nation.
In a recent index from BiggerPockets, the metro was said to offer investors total returns of 18.6 percent during the aforementioned period – making Miami the third best market for investors.
Price appreciation and rent-to-value ratios in the metro accounted for this return total.
According to BiggerPockets, single-family investment properties appreciated by 10.4 percent during the 2014 to 2015 period, with a 8.1 percent growth in rent-to-value ratios also occurring.
“Rental housing is at a premium and owning rental housing is a viable and smart investment alternative,” said Christopher Zoller, residential president of the Miami Association of Realtors (MAR).
A number of investors have come into Miami during the past two years and cleared out much of the distressed home inventory, according to Carlos Gutierrez, 2016 president elect of MAR. These investors have bought up short sales and foreclosures, rehabbed them or added value, and then resold or rented them.
“Our market is in a secure growth mode due to half of our transactions being cash transactions,” Gutierrez said. “Savvy investors have found ways to capitalize on that growth.”