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The Best Markets For Residential Property Investors

house, home, housingFlorida takes the top spot for what the authors of a new report call "profitable investing," followed by Dallas/Fort Worth, Washington D.C.Atlanta, and Houston.

A Q1 report from MyHouseDeals.com, an online community for residential real estate investors, provides data about which market areas and deal types are available.

"2020 was a historic year as the U.S. navigated the coronavirus pandemic. The residential real estate industry thrived as historically low mortgage interest rates led to unprecedented demand. Strong market conditions have extended into 2021. While mortgage rates have crept up a bit, the market is still red-hot and pricing wars are commonplace," according to the MyHouseDeals report.

During the first quarter of 2021, MHD says it added thousands of deals in the following categories:

  • Wholesale real estate deals (76.9%)
  • Investor-ready foreclosures (18.1%)
  • Motivated MLS deals (4.4%)
  • Motivated seller deals (0.5%)

Realtor.com recently named another metro area, Canton, Ohio, one of the best places for real estate investors.

"Pre-pandemic, Canton made the list of our 20 hottest housing markets thanks to its affordability," noted Realtor.com's Elena Cox. "With a median listing price about half the national median of $375,000, Canton is the most budget-friendly metro on our list—it’s also a good place for investors who want to turn single-family homes into rentals."

Joey Marino with Whipple Auction and Realty has worked with buyers from all over the country, including Las Vegas, the Carolinas, and New York, who are looking to purchase investment properties in Canton.

“The rents are not near as high as what you would get in New York City, but the return on investment can still get you 1% or more monthly,” Marino told Realtor.com.

Single-family home rentals remained a strong market for investors during the last year with good prospects ahead, despite the challenges for owners of other rental properties as a result of the COVID-19 pandemic moratoria, DS News reported in its May 2021 print edition.

“The single-family home rental market is absolutely on fire,” Jeff Pintar, CEO, Pintar Investment Company told DS News, echoing the sentiments of other market experts. “In all aspects of it, it’s continued to get stronger and stronger and has continued to evolve. The operational efficiencies of this business are actually far better than multifamily or other asset classes.”

“Most of our customers are adding to their portfolios right now,” added Bill Tessar, President, Civic Financial Services.

With home prices rising to incredible heights, all-cash offers on houses are winning bidding wars, says Realtor.com, and cash buyers are typically real estate investors or people looking for second homes.

Thus, the ability to pay cash for a property investment gives one an edge, and the folks at MHD suggest studying the data maps in this Q1 2020 report, which includes an ARV per market area graph, at MyHouseDeals.com.

About Author: Christina Hughes Babb

Christina Hughes Babb is a reporter for DS News and MReport. A graduate of Southern Methodist University, she has been a reporter, editor, and publisher in the Dallas area for more than 15 years. During her 10 years at Advocate Media and Dallas Magazine, she published thousands of articles covering local politics, real estate, development, crime, the arts, entertainment, and human interest, among other topics. She has won two national Mayborn School of Journalism Ten Spurs awards for nonfiction, and has penned pieces for Texas Monthly, Salon.com, Dallas Observer, Edible, and the Dallas Morning News, among others. Contact Christina at christina.hughesbabb@thefivestar.com.

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