Investors.com recently shared the findings of a new study performed by real estate data firm RealtyTrac. The study focused on the rental market in the United States, and found that returns are still quite high in rental real estate investing.
The report looked at three bedroom rental properties and 586 counties around the country. RealtyTrac found that, on average, rental property owners made an annual average return of 9.06% in the third quarter of 2014. That marked a slight decrease from the average annual returns of 9.65% a year prior. Vice president of RealtyTrac Darren Bloomquist commented that these high returns show that the single-family rental market is strong, and likely to stay that way for some time.
The study also found that returns are much higher in counties where there are high risks. RealtyTrac considered markets where unemployment and vacancy rates were above the national average to be high-risk, high-yield markets, and returns for investors in such areas were a whopping 19% on average.
Buy and Hold Investing Ideal for Current Market
With home prices still on the rise and rent prices going up as well, the housing market is ideally suited to buy and hold investing at this time. While fix and flip investors are being driven towards the luxury market in order to make substantial profits, opportunities for lucrative investments currently exist at every end of the housing spectrum for buy and hold investors. With the apartment market so overly saturated, people at every income level are turning to single-family home rentals. Over the next two years, home prices across the country are expected to go up anywhere from 3% to 10% per year, and rent prices will increase as well. As a result, buy and hold investors stand to make excellent profits in the years to come, as they have over the last several years.
To learn more about rental real estate financing or the buy and hold market in general, contact the ZINC Financial team today. At ZINC, we offer competitive terms for our buy and hold loan programs as well as personalized service throughout the investment process. Call 559.326.2509 today to learn more.