The rental market is heading south, especially in Florida. And that's a good thing.
According to a fourth-quarter analysis by HomeVestors of America, five of the best places to invest in rental properties are now in the Sunshine State.
Daytona Beach ranks second in the quarterly study by the company that's known for its slogan, “We Buy Ugly Houses,” bested only by Las Vegas. Orlando is fourth on the list of the 10 locals with the best investment opportunities. Fort Myers is fifth, Fort Lauderdale, eighth, and Tampa, ninth.
The other cities on the top 10 list are Detroit at No. 3, Warren Mich., fourth, Bakersfield, Calif., seventh, and Rochester, N.Y., tenth.
The quarterly list is a national ranking of the expected future performance of single-family homes that are purchased as rental properties. It is complied on behalf of HomeVestors by Local Market Monitor and serves as a guide for investors in deciding how much to pay for a rental house. The companies estimate that 14% of all single-family homes nationwide are operated as rentals.
“We think Florida is one of most interesting states in terms of rental property opportunities,” said Ingo Winzer of Local Market Monitor. “That's because home prices haven't bottomed out, and rents will eventually be supported by renewed population growth.”
David Hicks, co-president of HomeVestors, said the current market represents “the best opportunity for investors to accumulate rentals in the last 30 years.” He said his company is advising its franchisees and their investors to act now in places like Florida, which only a few years ago did not offer the opportunity to acquire cash flowing rentals.
