Where to Find the Most Profitable Rentals - Real Estate, Updates, News & Tips

Where to Find the Most Profitable Rentals

With home prices skyrocketing across the country, finding a cash-flowing rental property may prove more challenging. The rising costs of owning the property are squeezing out more investors’ profits. ATTOM Data Solutions, a real estate tracking firm, identified the places where landlords can still find income-producing properties. The research team looked at 8,841 U.S. ZIP codes to find the best rental properties with cash-producing opportunities. Researchers found that buying the rental property is not always cost-effective. For more than half of the ZIP codes analyzed, purchasing a single-family rental property may lead to a negative net cash flow when purchasing a median-priced property with a 25 percent down payment that’s rented out at the median rental rate. On the other hand, 834 other ZIP codes could find investors being able to buy a median-priced home as a rental and produce annual net cash flows of $5,000 or more, according to ATTOM Data Solutions. In another 48 ZIP codes, investors may even see potential annual net cash flows of $10,000 or more. The ZIP codes offering some of the highest percent cash-on-cash return are: 74126: Tulsa, Okla. 63115: St. Louis 19103: Chester, Pa. 48234: Detroit 08104: Camden, N.J.  
Read more about the methodology used at ATTOM Data Solutions. Source: ATTOM Data Solutions

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