Investors who leverage a $400,000 investment in Jacksonville, Fla., rental properties get twice as much space, and collect 1.5 times the rent as those who purchase a condo in NYC. Similar values are found in the South.
$100,000 Down Goes Far in Florida
In the Long Island City section of Queens (above), an investor can purchase a 395-square foot studio, compared to Jacksonville, Fla. (below), where an investor can acquire two properties totaling 5,500 square feet for under $400,000 when using leverage of 25 percent. A buyer can also collect more than 1.5 times the rent in Jacksonville.
IRVINE, Calif., Oct. 4, 2016 – HomeUnion®, an online real estate investment management firm, has released a new report comparing investment property values in 10 of the most sought-after markets among HomeUnion®’s clients. The company analyzed what a total of $400,000 will buy a single-family rental (SFR) investor in these popular markets: Jacksonville, Dallas, Atlanta, Charlotte and Austin; versus what a real estate investor can acquire for the same price in the non-HomeUnion markets of Denver, Washington, D.C., Seattle, New York and Oakland, which are frequently coveted by investors.
When using leverage at 25 percent, markets in which HomeUnion® operates are more affordable, offer renters and investors significantly more square footage, and provide investors with the ability to earn much higher monthly rental returns. “Our study confirms that investors’ dollars go much further in the South and one of the biggest metros in Texas than they do in Oakland, New York, Seattle, Washington, D.C., and Denver,” says Steve Hovland, director of research for HomeUnion®. “Not only do investors get more for their money; they can buy a larger home or homes in a nicer neighborhood, allowing for the potential to capture higher rental income in the Austin, Charlotte, Atlanta, Jacksonville, and Dallas markets.”
Here’s what a 25 percent down payment on a $400,000 investment will buy in 10 of the most sought-after U.S. housing markets:
|Metro Area||Portfolio Price for 2 Rental Assets||Portfolio Monthly Rent Collected||Total|
|Metro Area||Sales Price for|
Source: HomeUnion® Research Services
In August, leveraged investment home prices rose 12 percent on a year-over-year basis, reaching a median price of $261,900. “As prices continue to soar for investment housing, and inventory remains low in many major metro areas, it has become increasingly difficult to find sound, profitable investments,” adds Hovland. “To assist our clients, we’ve done a deep dive into our data on more than 110 million homes nationwide to reveal just how far $100,000 down will go across the United States.”
To see how far an investor’s dollar can stretch in these 10 markets, visit What 400K Buys in the Most Sought-After Investment Housing Markets.
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HomeUnion® is an online real estate investment management firm. Based in Irvine, Calif., it provides all the services needed for individuals to invest remotely in single-family rental (SFR) properties. The company uses a combination of research and proprietary analytics to incorporate data on over 110 million homes and 200,000 neighborhoods into their database, and then delivers its solutions to an on-the-ground infrastructure that currently serves 18 locations. HomeUnion®’s role spans the lifecycle of the investment transaction: identifying sound investments, handling all aspects of acquisition, maximizing income, protecting asset value, and selling the asset when the time comes.
Communications Manager, HomeUnion®