Being a Landlord Can Be Increasingly Profitable
Despite falling rents and rising vacancies, the profitability of residential rental property is improving.
Investments in apartment complexes are generating annual returns of 7-8 percent immediately because purchase prices have declined.
Buying a rental property isn’t for everyone. It requires putting down at least 50 percent in cash because banks are reluctant to lend more. And buyers need to be able to hold the property for at least three to five years or more to give the investment time to gain value.
Local Market Monitor, which analyzes real estate investments, identifies these good and not-so-good markets for landlords:
Good Markets
* Columbus, Ohio
* Washington, D.C.
* Raleigh, N.C.
* Greenville, S.C.
* Columbia, S.C.
* Kansas City, Mo.
* Oklahoma City, Okla.
* Fort Worth, Texas
* El Paso, Texas
Bad Markets
* Detroit
* Cleveland
* Wilmington, Del.
* Dayton, Ohio
* Orlando
* Tampa-St. Petersburg
* Boise, Idaho
* Stockton, Calif.
* Las Vegas
* Phoenix
Source: The Wall Street Journal, M.P. McQueen (02/20/2010)
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