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HomeRun Homes is a centralized marketplace which helps people Find or Sell a Rent to Own Home, both Nationwide and Globally to the thriving Rent to Own Market. http://www.lease2buy.com
Showing posts with label memphis. Show all posts
Showing posts with label memphis. Show all posts

May 17, 2011

Big City, Big Rent? Think Again

Hi Folks,
   Glad to have you back today!

   Quite often, we hear people say that the Rent is too high (we even heard a potential political candidate run on that platform a while back!). Well, yes, Rent can be quite high, but as everything else in life, it's all relative.

   Venessa Wong for Bloomberg Businessweek ran an article titled, "The 10 Worst Cities for Renters", which ran in the Yahoo Real Estate Section, which took a look at how "much" is rent, relatively speaking. In the article, Wong states that over the past few decades, "...rent levels grew faster than renter income.", and that the amount of income, "apportioned to rent" has grown dramatically over the past fifty years. Wong cites research by Harvard University's Joint Center for Housing Studies, which shows that, "In 1960, about one-quarter of renters in the U.S. were at least moderately burdened, including 12 percent with a severe burden", and by 2009. the rate doubled to nearly half of renters with at least a moderate burden, including 26 percent with a severe burden.".What this means, as stated in the article, is that nearly half of renters pay more than 30 percent of their monthly income for rent, including 26 percent that pay more than 50 percent of income.

   Taking this data into account, which are the worst cities for Renters? Wong states that it’s not necessarily the most expensive cities that are to blame (and as you will see, not the biggest cities, either).

   Here is the list of the top 10 metropolitan areas ("toughest U.S. cities for renters"), ranked by the percentage of tenants spending more than half of their income on rent, per the article:

No. 10 Metro: Bridgeport, Conn. - Renter households with severe cost burdens: 30.5%
No. 9 Metro: Toledo, Ohio - Renter households with severe cost burdens: 30.8%
No. 8 Metro: Orlando - Renter households with severe cost burdens: 30.9%
No. 7 Metro: Memphis - Renter households with severe cost burdens: 31.6%
No. 6 Metro: Akron, Ohio - Renter households with severe cost burdens: 31.8%
No. 5 Metro: New Orleans - Renter households with severe cost burdens: 31.8%
No. 4 Metro: New Haven - Renter households with severe cost burdens: 32.7%
No. 3 Metro: Detroit - Renter households with severe cost burdens: 32.8%
No. 2 Metro: McAllen, Tex. - Renter households with severe cost burdens: 33.1%
No. 1 Metro: Miami - Renter households with severe cost burdens: 34.2%

   A quick glance at this list might make you wonder: What about New York City? Los Angeles? Chicago? This might change your perception; as the title suggests, "Big City, Big Rent? Think Again". The forecast in the article mentions that, "increases in rent levels are expected to continue outpacing income growth. Demand for rentals also may continue to grow as the preference for homeownership changes."

   What are your thoughts? Have you calculated rent as a percent of monthly income in your area? What was the percentage and what area did you calculate it for?

Have a Great Week, and Happy Rent-to-Owning !
Rob Eisenstein
HomeRun Homes Blog http://blogging.lease2buy.com
HomeRun Homes Website http://www.lease2buy.com

TAGS: #rent #realestate #miami #renter

August 6, 2010

UPDATED: Right Time to Buy? Top Real Estate Investing Markets

Good Morning,

Happy Friday! With the dreaded humidity taking a swan dive here in New York, it should make for a nice and dry weekend...finally !

As we discussed on Wednesday, we had a ton of requests for us to discuss the hottest markets for Real Estate investments. Keep in mind that these requests were NOT for the hottest housing markets for the standard property buyer, however, for the top Real Estate investing markets.

We warn you - this is a long post - but there is valuable information here !

We have turned to some experts in their given regions, and we have summarized these markets below. However, keep in kind that they are not in any specific order, and we would need to compare apples to apples in order to put them in top to bottom order, which for our purposes here, is outside of the scope of this Blog post. However, some corroborating reasons are given along with each city/region listed below.

Detroit: We had two experts weigh in on the Motor City. Dennis Fassett, a local investor, tells us that, "Nice brick houses in the suburbs with three bedrooms, basements, appliances, garages, and fenced yards can be bought for $40-50,000 or even less in some cases depending on the area. And the properties I have bought like that rent for $1000 per month and up. The ROI is off the charts.". Fassett says that he currently has, "11 houses and 43 apartment units here, and two more deals in process, and I'm looking to buy as much as I can while the market stays depressed."

Drew Sygit of The Lending Edge at First Michigan Bank , concurs, and states that, "Detroit the city is pretty hot. Meeting today with an Australian CPA who's clients all want to buy $30-50k properties they can rent for $900/month. We've got more foreign demand than domestic!"

Memphis: We spoke with Ryan L. Hinricher, a Senior Housing Analyst with Investor Nation, and he said that, "In Memphis an investor who's looking for income property can purchase pristine investment homes at or near median home prices of $115,000, which offer a positive cash flow, or properties as low as $5000 in areas typically higher in crime and lower in income for section 8 rental purposes". Hinricher also reminds us that, "Memphis was recently named one of the 5 best housing markets for 2010 by MSN, Realty Tracs best places to find a foreclosure in 2010, US News and World Reports #1 place for real estate steals in 2010, and Smart Moneys 5 markets expected to fare best in 2010. This is primarily because the transportation industry is one of the first to lead an economic recovery.".

Orlando: Phil Peachey, a Realtor with Regal Real Estate Professionals in Orlando, Florida, says that, "I have apartments at present at $20,000 and 4 bed 3 bath homes with pools near Disney for $100,000. These were 3 times the price a couple of years back.", and that, "Savvy investors are snapping these up in large numbers as they know the market has to come back at some time". I have to concur, as we got our start in the Orlando/Central Florida market, and that seems like a perpetually favored region.

St. Louis: Adam Kruse, a St. Louis Realtor of The Hermann London Group, advises that a lot of the investors are making their own rules on the purchase criteria in that city. Kruse says that, "There are areas of St. Louis where people just don't really buy as primary residence, but they buy them all the time to hold for rental",and says that he has a client who advises him to, "Take the purchase price, subtract off the last 2 zeros, double that number, and I want to be able to get that for rent.", and that they have helped him buy at least 15 places with that criteria. (example: purchase price $35,000, rent amount $700+ per month.)

California: Griff Straw, President of Solidifi, a technology-based appraisal management company, tell us that in California, "Coastal areas continue to offer good opportunities for investors, especially in California, where San Diego has been among the strongest areas in the country. The more remote coastal areas like Oxnard, north of Los Angeles, are less of a sure thing for shorter term appreciation, but may offer potential.

Some Additional Areas that show promise for the Real Estate investor have been identified by Alfred Miller President of Private Lending Solutions, LLC. Miller has, "identified the discount and cash flow properties as well. These are investor friendly markets". The markets he mentioned are Dallas-Fort Worth-Arlington (Texas), Houston (Texas), Tulsa (Oklahoma), San Antonio (Texas), Salt Lake City (Utah), Phoenix (Arizona), Indianapolis-Carmel (Indiana), Denver-Aurora (Colorado), Oklahoma City (Oklahoma), and Charlotte-Gastonia-Concord (North Carolina/South Carolina)

We hope that this list will be of significant help to you. We welcome your comments on any and all of the cities mentioned above.

Have a Great Weekend, and Happy Rent-to-Owning !

UPDATED: Top 5 Blog post for 2010 (For more information, CLICK HERE)