In the current market, where values are depressed but cash flows from properties are positive, these are ideal properties to purchase if you can get a significant portion financed at a long-term fixed rate.
Marketwatch is out with a HomeVestors analysis of the top 10 markets for people to invest in rental property, in order:
1.Las Vegas
2.Detroit
3.Warren, Mich.
4.Orlando, Fla.
5.Bakersfield, Calif.
6.Tampa-St. Petersburg, Fla.
7.Phoenix
8.Ft. Lauderdale, Fla.
9.Rochester, N.Y.
10.Stockton, Calif.
Some are on the list because of the dramatic drops, like Las Vegas and Orlando, but some are on the list because they have seen dramatic drops and are unlikely to rebound, such as the Michigan properties which now get more return on properties. Those with little upside have strong positive cash flow. In the current market, where values are depressed but cash flows from properties are positive, these are ideal properties to purchase if you can get a significant portion financed at a long-term fixed rate. The cash flow gives you sound footing PLUS significant upside, not from growth in an area but from inflation pushing all assets higher. I'm a buyer in these areas. Google Homevestors for the rankings on 100 different cities.
