Rental real estate investing
According to a recent study by really track real estate investors who own residential property in the United States earned an average annual return of 9.06% in the third quarter of 2014. Although this is a good return in light of the fact that most investors are earning under a half a percent on their CDs, this 9.06% was actually down from 9.56% in 2013, according to the study.
In this report, the median home prices in 586 counties tracked, increased by more than 7% on average in the third quarter of 2014 as compared to a year earlier. Also, average rents for three bedroom homes increased less than 1%.
A vice president at ReallyTrack said that the market for rentals was softening a bit but, “in the high-risk, high-yield markets, where unemployment and vacancy rates are higher than the national averages, the average return was a whopping 19%, actually up from a year ago, thanks to a strong increase in rental rates. Home prices, meanwhile, were more volatile in the high risk, high-yield markets, with 3 out of 16 posting double-digit percentage decreases in median home prices from a year ago,” the ReallyTrack vice president said.
The best performing markets for rental returns were in North Carolina, Georgia and Indiana. The worst markets for rental returns were located in New York County, New York, San Francisco County, California, Kings County, New York, and Williamson County, Tennessee.
