DataInvesting

Rental property investments go farther in the South, HomeUnion says

  • With 25 percent down on a $400,000 purchase, investors are likely to find condos with lower monthly returns in costly rental markets.
  • In Austin and Dallas, rental investors can purchase two single-family homes at the same price point.
  • In Oakland, a $400,000 condo rents out for $2,200 per month.

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Ksenia Ragozina / Shutterstock.com Demand may be high in your area, but is the potential revenue for rental property investments worth the entry costs? HomeUnion analyzed the top cities for single-family investment properties to find out. The real estate investment site found that leveraging 25 percent of a $400,000 single-family rental (SFR) home, or $100,000 down, provides larger monthly returns in southern cities like Austin, Dallas, Jacksonville, Atlanta and Charlotte. "Our study confirms that investors' dollars go much further in the South and one of the biggest metros in Texas than they do in Oakland, New York, Seattle, Washington D.C. and Denver," Steve Hovland, director of research for HomeUnion, said in a statement. "Not only do investors get more for their money; they can buy a larger home or homes in a nicer neighborhood, allowing for the potential to capture higher rental income in the Austin, Charlotte, Atlanta, Jacksonville and Dallas markets." Where does...