Real estate, for rent, allows you, the investor, to determine your income.
Buying a home is not always makes a profit at the expected volume. During the period from 1890 to 2012, the economic profitability of the real estate adjusted for inflation was 0.17%. It was only a portion of the profits from 6,27% investment in the stock market over the same period.
But there is a way to earn similar or even larger investment gains in real estate: owning property which you to rent out.
In this case, you pay not for owning, say, a house, and you pay for what you own. Mortgages are often covered by the rent, and if you correctly play your existing cards, you will remain in the black after payment of insurance, taxes and maintenance costs of the building.
In addition, of great importance in real estate is the placewhere you bought the building. HomeUnion, an online management company, real estate investment, recently published a list of the best rental markets for single-family homes, based on how they should work in 2017.
To list HomeUnion analyzed 30 rental markets to determine which ones have the most favorable conditions with the increase of the rent, difference between rent and profit, while turnover and number of appearing of new buildings.
Below are the 13 best places to buy property for subsequent leasing at the moment. Based on the average price of investment in housing, we also included the average contribution of a mortgage loan (based on 30-year fixed mortgage with a 20% down payment and 5% interest rate).
Average house price: $145 000
Mortgage payment: $ 623
Average rent: $ 1,431
Annual profit after operating expensesof 6.7%
Average house price: $166,300
Mortgage payment: $714
The average cost of rent: $1,437
Annual profit after operating costs: 5.4%
Average house price: $235,000
Mortgage payment: $1,009
The average cost of rent: $1,798
Annual profit after operating expenses: 5.2%
Average house price: $172,300
Mortgage payment: $740
Average rent: $1,513
Annual profit after operating expenses: 5.8%
Average home price: $131,000
Mortgage payment: $563
The average cost of rent: $1,243
Annual profit after operating expenses: 6.4%
Average house price: $450,000
Mortgage payment: $1,933
Average rent: $2,218
Annual profit after operating expenses: 3.3%
Average home price: $167,500
Mortgage payment: $719
The average cost of rent: $1,406
Annual profit after operating expenses: 5.7%
Average home price: $180,000
Mortgage payment: $773
The average cost of rent: $1,264
Annual profit after operating expenses 4.7%
Average house price: $333,800
Mortgage payment: $1,434
The average cost of rent: $2,337
Annual profit after operating expenses: 4.7%
Average home price: $105,000
Mortgage payment: $451
Average rent: $1,285
Annual profit after operating expenses: 8.5%
Average house price: $431,100
Mortgage payment: $1,851
The average cost of rent: $2,148
Annual profit after operating expenses: 3.9%
Average home price: $209,900
Mortgage payment: $901
Average rent: $1,980
Annual profit after operating expenses: 6.3%
Average house price: $199,300
Mortgage payment: $856
The average cost of rent: $1,630
Annual profit after operating expenses: 5.6%
