When your looking income real estate is all about the numbers and the quality of real estate. I was listening to a podcast that said Seattle was a hot rental market. The average rents were $2300 and the average cost of a home was $400,000 plus. If you do the numbers not a great deal is a so called hot area.
Looking at the Arizona Market you can buy a home for around $185,000 all in and rent at $1200 a month. These properties have about $700-$800 dollars a year in property taxes, which is extremely low. The nets are approx 6%-7% without a mortgage. The tenants are plenty and they usually stay for a long period of time. These properties are hard to find, but can be purchased.
In Ohio you can buy a home for $150,000 and get around $1500 a month for the rent. These properties net approx $1100 a month without a mortgage and in great areas that have a ton of tenants that need a place to live. Vacancies in these areas are usually under 3%.
When you looking in other places that have very high returns, beware and look at the area. I would always want to fell touch and see a home before I purchased it. I talked to a couple of investors in an area one loved it and the other hated it. Having boots on the ground and someone who understands the areas and where to get long term tenants is very important to your success.
Also look at how many homes are for sale, and days on market. Make sure that the area has a high number of owner occupants in the area, and look at the pricing trends and make sure there is growing equity in the homes. That is a very important part of purchasing any type of real estate.
If you live in a high priced area like New York or San Francisco your income properties are very few and far between. Looking in other areas may be your only option. Call Brett and I will show you the areas me and my clients buy real estate in. I think you will be impressed 216-703-5740 EXP Realty Ohio and 602-363-6551 EXP Realty
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Thank you