Tips to be a landlord in the US

Tips to be a landlord in the US

Las Vegas, Detroit and Phoenix are some of the most appealing cities to make a buy-to-rent investment

If you’re thinking of becoming a landlord in the US, maybe you might find Las Vegas an attractive investment spot. Home prices have plunged by 62% from the 2006 peak; rents, instead, are rising considerably according to an analysis conducted by Local Market Monitor. Las Vegas was ranked number one on the basis of projected returns on investment for single family rental properties. Investors in Las Vegas are expected to have a 5.6% return on a rental property, a higher percentage in comparison with the 5% national average. But what are the risks? Investors are attracted by low prices and by the potentially-high return on investment and are buying so many homes to turn them into rental properties, that supply might overcome the demand. Renting the property might be difficult and letting it vacant might imply piling up expenses quickly.

Beaten-down home prices have created advantageous investment opportunities for home buyers in Detroit, too. Average prices have been cut by half from the 2004 peak reaching $ 78,000 in 2012. Rents are on the rise and renters’ incomes have been more stable thanks to the recovery of the auto industry, which has boosted the local economy. Investors in Detroit are expected to earn a 4.6% more than the national average until 2015.

Daytona Beach offers many affordable properties on the market, but many locals aren’t buying due to bad credit histories – payment problems caused by the severe housing bust that has hit hard the area in the latest years – which have made it difficult for them to get mortgages; therefore, the demand for rental properties is high. The estimated return on investment is about four percentage points higher than the national average.

Affordable prices, good return on investment and low risks are offered by the property market of Orlando, Florida. The demand for rental housing is constantly increasing as homeowners displaced by foreclosure are looking for rental properties. Furthermore, the metro area population continues to expand.

Let’s look at Warren, Michigan. The town was one of the wealthiest in the US when General Motors chose it to set up its factories in the 1950s. But when the car sales collapsed, the local economy followed the trend and the property average prices dropped. A real estate investment in the town can be advantageous only if the auto industry continues to recover. Home prices and rents are expected to rise by 2015.

The housing bubble hit Bakersfield really hard. Many residents were forced to leave their homes due to foreclosure and to move into rental properties. The town is still struggling to recover but having a diverse range of industries it appears to be less risky than Detroit.

If you were waiting for the opportune moment to buy a home in Phoenix to turn it into a rental property, this is it! The increasing demand for rental properties has made rents rise by 7% over the past two years and home prices are increasing quickly. In the first quarter of 2012, they were 5% higher than they were in the same period of 2011.

Reno is a second home market, as it is famous for being the investment destination of vacation-home buyers coming above all from Northern California, but it can also be a risk, as prices may follow the trends of coastal markets. At the same time, home prices are much lower in Reno than in other cities, such as San Francisco.

On-the-rise rents, low prices, an upswinging economy and a positive job growth make Tampa an ideal place to buy a rental property, but investments here are not without risks: there are many homes in foreclosures that will soon be put on the market. Their sale may bring to a price fall but also make it difficult to find tenants.

Read also:

Related Insights

  •  
    Tips to be a landlord in the US

    Tips to be a landlord in the US Las Vegas, Detroit and Phoenix are some of the most appealing cities to make a buy-to-rent investment If you’re thinking of becoming a landlord in the US, maybe you might find Las Vegas an attractive investment spot. Home prices have plunged by 62% from the 2006 ...

Real Estate Listings

Cod. 32722

For sale House, Arizona, Maricopa County, Phoenix, 2343 East Orangewood Avenue

749,000.00USD
For sale
House

263.29 m²
$749k in Southwestern US Arizona Biltmore area home for sale!! This is an incredible opportunity to purchase a home that is move in ready at the base ...
Cod. 17811

For sale Villa, Arizona, Maricopa County, Wickenburg, 790 W. Bralliar Rd

2,400,000.00USD
For sale
Villa

465 m²
It is a 465 m² large house (mostly furnished) with guest house and 8 hectares or 80'000 m² of the best building land. One of the most beautiful inves...
UNAVAILABLE
2005-2024 REALIGRO REAL ESTATE LTD. All Rights Reserved - VAT Nr: 893969932
Neikos Digital Agency
  1. Preferences

    For a better use of Realigro website, set your preferences for language, currency, square meters or sq ft.

    Set now Don't show again
BB