If you have an investment portfolio heavy on equities, you might want to consider diversifying into other asset classes in case the heated stock market suddenly takes a turn for the worst. Diversifying into residential real estate is an excellent way to protect and expand your portfolio. To that end, we are featuring a “hot investment” currently on our website that could help fulfill those diversification goals.
What exactly is a hot investment? A hot investment is a cash-flowing rental asset in such high demand there’s an 80 percent chance it will sell within 20 days of listing. You can find hot investment properties, even if they’re located thousands of miles from your home base, online. Using our end-to-end remote real estate investing solution, search hundreds of properties to pinpoint which one best matches your needs and fills that void in your investment portfolio.
HomeUnion®.com uses a wealth of big data and on-the-ground market experts to help you select real estate, (multifamily or single-family) in geographic regions that are right for you. Our real estate investment experts, known in-house as our Solutions team, will work with you online, on the phone or in person to identify metro areas with strong rental demand, and the properties within them for your next diversification play.
Our Solutions team relies on data science to help investors select the hottest investment properties, personalized for their needs. But first, we start at the top and filter our way down. The data powering our site provides investors with a big-picture view of local real estate market conditions, including job growth, rental rates, occupancies and much more.
We then take that metro-level insight one step further by evaluating each neighborhood based on a variety of economic, environmental and demographic characteristics. All of these inputs comprise our Neighborhood Investment Rating (NIR), a powerful tool that helps you identify the right asset in a value-added location.
Factors Determining Neighborhood Investment Rating
A+ neighborhoods generally offer the lowest risk exposure and highest appreciation, but with the lowest yields. Meanwhile, C neighborhoods come with the higher risk, and higher shorter-term yields. In the middle are B neighborhoods that offer moderate risk exposure, a balance of yield and appreciation with mid-priced properties.
In addition to conducting a metro- and neighborhood-level analysis, HomeUnion®’s data scientists evaluate all of the characteristics that determine a property’s investment value. Utilizing data on 110 million homes and 200,000 neighborhoods nationwide, we project the financial performance of each asset by calculating its yields, appreciation, returns and monthly rental income.
We also analyze the value of the property’s physical attributes, such as the condition of its floors, hot water heater, kitchen appliances and much more. If fact, each property on our platform adheres to a set of standards – the HomeUnion® Home – that ensures its viability as an investment, and ensures that it’s a high-quality rental for that tenants living inside of it. All of this insight ultimately helps you decide where to invest, and in which type of property to invest.
Below is a hot investment that could help you move toward your goal of diversifying into real estate, if that’s on your radar screen. You’ll want to move quickly on this asset, though: Hot Properties are highly likely to sell within 20 days of listing.
Hot Investment in an A Neighborhood Near Atlanta
This picturesque four-bedroom/four-bath hot investment is located in an A neighborhood in Fayetteville, GA, a southwestern Atlanta suburb. This 2,805-square foot craftsman-style home features four bedrooms and 3.5 baths in an open, inviting floor plan. The main level has hardwood floors throughout, and a formal dining room with abundant natural light. The property’s great room features soaring ceilings and built-in shelves, an open, spacious kitchen with Corian countertops and a separate breakfast room. The master suite has a walk-in closet, and a spacious master bath with a tiled shower. The upstairs guest suite includes its own private bathroom, along with two other bedrooms and full bath with double vanity. Adding to the property’s appeal is the strengthening local economy and real estate market. According to HomeUnion®’s Data Science team, average rent in the region is expected to increase 3.8 percent by the end of 2018, and SFR vacancy should decline 30 basis points to 6 percent, making this metro an attractive one for investors. In addition, by 2030 the region’s population should grow 25 percent to 1.4 million residents.
Financial Details of January’s Hot Investment
List Price: $292,900
Initial Investment: $101,012
Projected Monthly Rent: $2,100
Year 1 Gross Yield: 8.60%
Year 1 Net Operating Income (NOI): $14,353
15-Year Yield: 7.06%
15-Year Appreciation: 2.58%
Year 15 Total Return: 14.21%
Financing a Hot Investment, and All Investments
HomeUnion® properties, not just our “hot properties,” can be acquired with all cash or a self-directed IRA. View available financing options at HomeUnion® Lending, and please note that return and yield numbers are projections provided by our Data Science team.
For more information about this hot property in the Atlanta metro, and to hear which neighborhood – A, B or C – works best for your investment goals, contact HomeUnion®’s listing agent Shakhan King at 866.732.3220 before January comes to an end!