Best and Worst Markets for Single-Family Rental Investments

The volatility of the stock market in 2016 has left some people looking for an alternative investment strategy, including real estate. A new report from HomeUnion, looks at the best and worst markets for Single Family Rentals (SFRs).

HomeUnion researched the markets with the highest and lowest capitalization rate. (The capitalization rate is the percentage of return from an investment when you divide the Net Operating Income (NOI) by the price an investor will pay for the property.)

The most favorable markets were: Memphis, TN (7.3%); Oklahoma City, OK (6.9%); Pittsburgh, PA (6.4%); Cincinnati, OH (6.4%) and Houston, TX (6.1%). The Bay Area – San Francisco and San Jose – both at 2.7% – topped the least attractive markets followed closely by Orange County and Los Angeles in Southern California.

Many investors obtain loans for SFRs so they can purchase more than one property. Colony American Finance loans acquisition lines for new purchases. We also have 5 and 10-year fixed rate term loans that provide long term financing solutions for stabilized rental properties.

CoreVest is a leading provider of financing solutions to residential real estate investors. We provide attractive long-term debt products for stabilized rental portfolios as well as credit lines for new acquisitions. For more information about how CoreVest can help grow your rental and rehab business, please call 844.223.2231 or submit our contact form.