Percent of rentals in a town and the effects it has

[Shawn Mcenteer]

When deciding to invest in a certain market what does it mean if there are a lot of rental units compared to not so many.

I.E.

Town A) 80% home owners 17% rental and 3% vacant

Town B) 50% home owners, 45% rental and 5% vacant

In your personal opinion (or if there is an actual theory behind this) looking at these numbers which town do you think would be a wiser investment location for rent and hold properties?

[Jean Bolger]

I'd agree with everybody above- except, as we all know. things are rarely all equal between real world choices

Others things to weigh would be the comparable economies of the towns. If town B has a growing economy and plenty of jobs it might be the better choice. Or if it is, say, a university area with a lot young folks who are only there for 4-6 years. They would be less likely to be homeowners. But the area itself might be a better market for rentals in the long run than town A.

I'd try figure out who your potential tenants might be in either place, and if you see that demand holding up over the next decade or so.