Hard Money Investors: Lock the best place for your next rental home

The biggest returns

Quoting ATTOM Data Solutions in a new analysis, house purchases in Baltimore City, Maryland have secured the hard money investors remarkable profits. Baltimore has witnessed a 24.5 percent gross rental yield on average — the highest yield across the nation.

Bibb County, Georgia and Cumberland County, New Jersey are also among the most heating up markets with promising revenues and profits of over 21 percent in average rentals.

“Buying single-family homes to rent them out is a better deal for hard moeny investors so far this year than it was at the same time in 2018, as profit margins are rising in a majority of counties across the United States,” said Todd Teta, chief product officer at ATTOM. “Last year at this time, investors were seeing returns drop in three-quarters of the counties that were analyzed. So far this year, those margins are up in six out of every 10 counties analyzed.”

From an investor’s standpoint, North Carolina’s Buncombe County is the best fit as rentals have been soaring over the last year by 29 percent. Besides, California’s Santa Clara County and North Carolina’s Henderson County also ranked top on the list.

The areas where hard money investors should avoid

Teta also mentioned that investors should also pay attention to those rental markets where locations decide on the profits to a large degree.

“Despite the generally rosier picture, profits vary widely and investing in the single-family home rental market is not always a great move,” he said. “The typical bottom-line gain from county to county this year has ranged from as high as 29 percent to as little as 3 percent.”

In San Mateo County, California, housing rentals yield only 3 percent, the smallest increase across the country last year. California’s Marin County and New York’s Kings County have seen similar low yields in these two areas.

 

 

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