I’ve been saying this
for years: If you want to build a profitable portfolio of investment properties,
avoid high-price homes in upscale markets. Instead, go for older single-family
homes in working class, blue-collar neighborhoods. And RealtyTrac recently
confirmed my philosophy.
The data firm found
that the highest yields for single-family homes can be found in secondary and tertiary neighborhoods in secondary and
tertiary markets. These somewhat older homes in older neighborhoods are
benefiting from rent growth and strong demand for rental housing. And they
are far away from the places where institutional investors have bought thousands
of rental homes.
According
to RealtyTrac, in some of those blue-collar markets the average home price is
well under $50,000 and average rents are significantly higher than $1,000 a
month, adding up to annual rental yields of over 30 percent.
You
can read more about RealtyTrac’s findings by clicking here.
