The Best and Worst Places to Invest in SFR in America

[Marcella Hoard]

The single-family home rental business is less profitable this year compared to last year across most of the country with yields decreasing due to increases in cost of living. That is why it is more important than ever to be selective about where to invest. Our clients tell us that they appreciate how we help them assess market risks and profitability. 

I wanted to share an article regarding the best and worst areas to invest in single family homes in America. A summary of the article is below.

-Some of the best locations for SFR investments and metros with the strongest yields in 2020 include Baltimore, Dallas, Fort Worth, Cleveland, Columbus and San Antonio.

-Metros with the weakest returns in 2020 include Nashville, San Jose and the San Francisco Bay area.

https://www.millionacres.com/real-estate-market/articles/these-are-the-best-and-worst-places-to-buy-a-single-family-rental/

[Dev Conboy]

As they say in the beginning of the article, the killer of these "yields" is rising home prices. Too bad for the investor. Be careful what you read out there...

Appreciation value is where most investors make their money in the long run. I've been running projections every day in Nashville, the appreciation is unprecedented and there are still properties to be found that follow the 1% rule. I truly believe you can find a terrible deal in Dallas and an amazing deal in San Mateo. I think an investors focus should be longer term, focused on a mix of cash flow and appreciation.