546: The Best Single Family Real Estate Investing Markets for 2021

SHOW NOTES FOR EPISODE 546: THE BEST SINGLE FAMILY REAL ESTATE INVESTING MARKETS FOR 2021

Where are the ideal U.S. locations for real estate investors to invest in single family homes in 2021?  Follow the data!  In today’s podcast, Bill shares recent research data pointing to the best areas to purchase both single family rentals and to buy fix ‘n flip single family homes.

Tip of the Week – Learn about market cycle theory

“Try to invest in the right phase of the cycle. This is not speculating, but trying to generally understand what will happen with the real estate prices in the following five years.

I’ve always purchased my investments during recession and early stages of recovery phases. This has enabled me to earn significant capital gains in addition to rent income.”

-Paul Koger, Head Trader and Founder, Foxy Trades LLC

Reference:  https://learn.roofstock.com/blog/real-estate-investing-tips-from-successful-investors

The Best Single Family Real Estate Investing Markets for 2021

For investors looking to venture forth beyond their backyards in search of the ultimate investment opportunities, where are the ideal locations to invest in real estate? RealtyTrac’s parent company ATTOM Data Solutions has released two reports that identify some of the best markets in the country for real estate investors.

Best Single-Family Rental Markets

For single-family rental investors, ATTOM’s 2021 U.S. Single Family Rental Report analyzed data from 495 U.S. counties, showing that the average annual gross rental yield so far in 2021 is 7.7 percent, down from an average of 8.4 percent in 2020.

According to the report, counties with the highest potential annual gross rental yields for 2021 include:

• Schuylkill County, PA, (26.1 percent)
• Bibb County, GA, (18.1 percent)
• Baltimore City/County, MD (16.2 percent)
• La Salle County, IL, (14.1 percent)
• Chautauqua County, NY (13.7 percent).

ATTOM also ranked the top 10 “SFR Growth” counties with the greatest annual increases in rental returns, among those counties where average wages grew over the past year and the potential 2021 annual gross rental yields were above 10 percent:

• Calcasieu County, LA (29.7 percent increase from 2020)
• Erie County, PA (13.4 percent increase)
• Licking County, OH (13.3 percent increase)
• Delaware County, IN (12.7 percent increase)
• Tazewell County, IL (12.2 percent increase)
• Lorain County, OH (12.0 percent increase)
• Wichita County, TX (10.9 percent increase)
• Clark County, IN (7.4 percent increase)
• Bibb County, GA (5.8 percent increase)
• Miami County, OH (4.2 percent increase).

Best Markets for Fix-and-Flip Investors

ATTOM also recently released its 2020 Year-End U.S. Home Flipping Report, which revealed that both home flipping sales and home flipping profit margins declined across the U.S. in 2020, with just 241,630 single family homes and condos flipped, down 13.1 percent from 2019. Flips in 2020 generated an average gross profit of $66,300 nationwide, up 6.6 percent from $62,188 in 2019.

The 2020 year-end home flipping analysis stated that among the 6,806 U.S. zip codes included in the analysis, there were 10 with a population of 5,000 or more and at least 10 home flips in 2020 where flips accounted for at least 25 percent of all home sales last year:

• 38116 in Shelby County, TN – South of Downtown Memphis – (31.5 percent)
• 38127 in Shelby County, TN – Directly North of Downtown Memphis – (28 percent)
• 38115 in Shelby County, TN – Also Southeast East of 38116 -(27.8 percent)
• 38128 in Shelby County, TN – Directly North of Downtown Memphis and east of 38127(27.5 percent)

The typical gross profits in those top 10 zip codes with the most homes flipped in 2020 were:

• 08757 – Toms River, NJ ($112,250)
• 85032 – Phoenix, AZ ($81,300)
• 85351 – Sun City, AZ ($53,875)
• 37042 – Clarksville, TN ($53,700)
• 34668 – Port Richey, FL ($53,250)
• 38127 – Memphis, TN ($50,200)
• 38128 – Memphis, TN ($49,900)
• 85142 – Queen Creek, AZ ($37,001)
• 85138 – Maricopa, AZ ($27,250)
• 28269 – Charlotte, NC ($24,000)

Opportunities Are Everywhere – if You Know Where to Look

Most seasoned investors believe there are opportunities in virtually every market, for investors who are willing to do their homework. Visit RealtyTrac to find the best deals on foreclosure properties across the country.

Reference:

https://thinkrealty.com/the-best-markets-for-real-estate-investors-in-2021/

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