Question Details

Jan, Home Buyer in Kansas

Rental Yields or average rents statistics for all states (USA)?

Asked by Jan, Kansas Sun Jan 18, 2009

I am considering investment in real estate this year and I actually want to find the best state and type of house to invest in. I am searching internet for some statistics about rents in different states and rantal yields, but I can't find anything relevant.
- Would somebody know about some relevant sources?
- Do you have recommendation for some state - where the investment would be most worthy (in addition with lately price falls, rental yields, etc)?
- Which type of real estate is the best for investment in (2-bed, 3-bed houses, condos,..)?

I am sure that many investors will be glad for this information. Thanks!

Jan

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Answers

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To answer my question after a 3 years - I have actually created a table with price to rent ratios (or rental yields) for all of the states. Who would be interested can see it here:

http://www.realestateanalysisfree.com/blog/real-estate-analy…
1 vote Thank Flag Link Fri Aug 12, 2011
California now offers great prices for foreclosed homes and condos. Within 1 hour from San Francisco, you can find homes for around $200k which can rent out for $1700-2000 per month. That translates to a yield of about 7-8% p/a. Visit http://www.BuyHomeInUS.com for more info on buying properties in USA. Generally, homes offer better potential for appreciation then condos. Also, with condos, you have to pay a steep HOA fee, which can be $300+ per month. Contact us at http://www.BethanyREInvestments.com if you want to buy properties in CA.
Web Reference: http://www.BuyHomeInUS.com
0 votes Thank Flag Link Fri Aug 12, 2011
Try http://www.zilpy.com, you can type in different property addresses around the country and get the rental rates for most areas. Here in the central valley were seeing a large need for rental properties as the number of foreclosures are displacing lots of homeowners who obviously have a need to rent. . You are more likely to pick up a decent investment here, rent it fairly quickly and have a cash flow at the end of the month. Let me know if your interested in receiving my list of positive cash flow properties, you can email me at cindymello@gmail.com. Good Luck!
0 votes Thank Flag Link Sun Jan 18, 2009
Thanks for fast answer Ralph. My situation is little bit more difficult, since I have lived in US few years, but now I am back in Europe. Therefore I can really choose from all the states.

I am looking at some REO's offers and since the house market is down, it seems as a good investment. However what I am looking to are houses or maybe condos up to $200,000. I am wondering though, if it's better to buy for example two small cheap houses each for $100,000 or rather one more luxurious and bigger for $200,000.
And this all depends on each state - and it's prices, rental yields etc.

Also I hope I will be able to get the mortgage for that. I called to Bank of America last week and since I am foreigner, I will probably have to put around 30% down.

If you would have some website, where I could look for some data from different states, that would help me best in the moment I think.

Thanks!
0 votes Thank Flag Link Sun Jan 18, 2009
Jan, Unless you're going to spend money - and thereby lessen the yield - to have someone manage investment properties that are not where you live, I would first suggest buying close to where you live so you can actively manage these properties. Secondly, are you looking to invest a large sum of money, i.e., $10-$20 million? If so, then large apartment buildings may be the way to go. I have an agent in my office that has apartment houses in several states but his strategy is one property at a time. He doesn't use some formula or area statistics to determine what's a good investment. I work with several investors and I believe that condos are the best because you don't have to worry about structural issues (unless the entire condo development has an expenditure for roofs or drainage r something like that) or maintaining the property. The only issues you will have are from the walls in. Also renters love condos because they usually have amenities like pools, tennis courts, club house, gym, etc. to make them attractive to tenants. It's also easiest to get rental permits (if the particular area requires them) for condos then let's say a house because many townships require surveys, certificates of occupancy, etc. I hope this helps. Feel free to contact me if you have any other questions or if I can assist you in some way.

Ralph Windschuh
Associate Broker
Senior Real Estate Specialist
Certified Buyer Representative
Century 21 Princeton Properties
631-467-0009
rwindschuh@c21princetonproperties.com
0 votes Thank Flag Link Sun Jan 18, 2009
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