Real Estate Investing – Buying Here Will Make the Most Profit

Real Estate Investing – Buying Here Will Make the Most Profit

Suddenly real estate investing has become very popular, largely thanks to country wide binge watching of fixer upper or house flipping shows on TV. However even the most devout fixer upper fans still need to know where to buy the best property.

Apparently, according to a report buy Attom Data, a real estate firm, aspiring real estate investors should head south. Single family three bedroom homes in Clayton County, GA have earned the highest returns in 2017 at a whopping 23.7%. Especially considering the average profits across the country are around 9%.

A company recently looked at over 200 million residents and compared them to the Department of Housing data looking at only 3 bedroom single family homes to come up with the top cities to invest in.

“While good returns on single-family rentals are hard to come by in high-priced coastal markets and in some other housing hot spots … solid returns on single-family rentals will continue to be available in many parts of the Southeast, Rust Belt, and Midwest for investors purchasing in 2017,” said Daren Blomquist, Senior VP at Attom.

The top five counties to invest are as follows:

  • Clayton County, GA, 23.7%
  • Baltimore County, MD, 23.6%
  • Bibb County, GA, which includes Macon, 23.5%
  • Monroe County, PA, which includes East Stroudsburg, 20.6%
  • Saginaw County, MI,18.8%

Getting off the ground floor can be difficult. For those investors it was found that property in struggling industrial metros have the highest rental growth.

Top five give struggling metros with high rental growth are as follows:

  • Youngstown, OH
  • Ogdensburg, NY
  • Augusta, GA
  • Binghamton, NY
  • Toledo, OH

Returns in these areas ranged from 17.2% in Youngstown to 14.5% in Toledo.

“Trumbull County in the Youngstown metro tops the list of best single-family rental growth opportunity markets because of a combination of rising wage growth and low home prices,” Blomquist also says “The low home prices represent a low barrier to entry and high rental returns for rental property investors, while the rising wages represent a foundation for raising rents in the future, providing even better returns.”

The five worst investment returns:

  • Arlington County, VA, in the Washington, DC, area, at 3.4%
  • Williamson County, TN, which includes Nashville, at 3.9%
  • Santa Cruz County, CA, at 4.1%
  • Norfolk County, MA, which includes Boston, at 4.2%
  • and Santa Clara County, CA, in Silicon Valley, at 4.2%

“To find good rental returns, investors will need to purchase properties farther away from where they live,” Blomquist says. “This makes it tougher to truly evaluate the value of the property and quality of the neighborhood it’s in when purchasing.”