These assets can acquired for well below a $50,000 initial investment
With the median home price in the United States exceeding $200,000, an alternative investment might be more lucrative, especially as investors try to take advantage of tax benefits still available before the end of the year. To help investors seeking tax breaks from wholly owned real estate, or those seeking diversification into hard assets like real estate, HomeUnion’s Data Science team has identified rental properties available for an initial investment of $150,000, well below the current median home price. Utilizing leverage and today’s low interest rates, many of these properties can be acquired for well below a $50,000 initial investment.
In fact, these assets are a bargain compared to the median home prices prevalent in coastal markets like San Jose and San Francisco, whose median prices have hovered around $1 million for the past three quarters or more.
There are more than 20 rental properties priced at around $150,000 currently listed on HomeUnion’s investor portal, which will provide investors with low-priced assets that produce impressive monthly rental returns.
Here’s a sneak peek into 3 of the hottest investment properties on HomeUnion’s roboadviser-like platform that offer the highest total returns over a 15-year period:
- 4663 Ravenwood Loop, Union City, GA: Built in 2017, this 1,450-square foot, three-bedroom asset has a total return of 8 percent and a 5.2 percent yield over 15 years. Monthly rent is projected to be $1,299 a month.
- 4688 Ravenwood Loop, Union City, GA: Constructed in 2017, this 1,450 square-foot, three-bedroom asset has similar attributes: a total return of 7.8 percent and a 5.5 percent yield over 15 years. Projected rent is $1,299 a month.
- 7640 Volion Parkway, Fairburn, GA: Developed in 2017, this three-bedroom, 1,512-square foot rental asset provides total returns of nearly 7.7 percent and yields of 5.4 percent on a 15-year basis. Monthly projected rent stands at $1,300.
Metro Atlanta Assets Provide Highest Returns
It’s no surprise that Atlanta metro area properties dominate our list of properties with the highest returns as the local economy continues to strengthen. As a result, there has been some upward pressure on single-family rents and occupancy. Meanwhile, Atlanta’s unemployment rate dropped 70 basis points over the past 12 months to 4.3 percent in August 2017, creating significant demand for renter households.
To search investment properties available in your price range, sign up on HomeUnion’s website today!
Sources: HomeUnion Research Services, Bureau of Labor Statistics