20 Best Cities to Buy Single-Family Rentals
One of the biggest driving forces of the housing recovery has been deep-pocketed investors snapping up single-family homes to rent out
. But that works better for the corporate buyers, not always the individual investors. Still, it can be quite lucrative if you have the money.
According to online foreclosure marketplace RealtyTrac
, there are still plenty of cities out there that offer ample opportunity for everyday buyers to purchase single-family homes and rent them out at a decent profit. These 20 cities are the best for buying single-family rentals
"Buying single-family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone," said Daren Blomquist, vice president at RealtyTrac. "But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment. It often just takes persistence and willingness to pass on bad deals. The top 20 markets we selected represent the best chance to buy rental homes that generate good cash flow, but opportunities are available in most markets across the country given the combination of relatively low prices, low interest rates and a strong rental market."
Click through the gallery below to see the 20 best cities to buy single-family rentals.
Note: Financed cash flow refers to the monthly profit you would make from renting out a single-family home for which you have a 20-percent down mortgage with a 4 percent interest rate; cash purchase cash flow is the profit if you bought the home in cash and have no mortgage payment.
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