Real estate investors have a lot of opportunity in front of them. Many different types of properties can become ideal chances to make a profit - from foreclosed houses to single and multifamily rentals.
In fact, the rental market has become a popular destination for many real estate investors, and there is room for major corporations as well as the little guys. Any budding investor could want to take a chance and become a landlord, and there are several great markets across the U.S. to do just that.
Investors keep eyes on multifamily mortgages
Both commercial and multifamily mortgage debt outstanding increased over the second quarter of 2013, thanks to involvement from several investment groups, according to the Mortgage Bankers Association.
The interest these companies have placed in multifamily properties might be a good indicator of an ideal investment opportunity, and now might be a good time for more people to take a shot in the industry.
"A strong appetite among investors to put their money to work in commercial and multifamily mortgages led to an increase in the level of mortgage debt outstanding," said Jamie Woodwell, vice president of commercial real estate research at MBA. "In the second quarter alone, banks increased their holdings of commercial and multifamily mortgages by $16 billion; Fannie Mae, Freddie Mac and FHA increased their multifamily holdings and guarantees by $5.6 billion and life insurance companies increased their commercial and multifamily holdings by $4.0 billion."
Overall, multifamily mortgage debt outstanding saw a 1.3 percent increase from the first quarter of 2013 to the second one, the MBA reported. The higher demand for these types of mortgages could inspire other, more entrepreneurial investors to take a crack at the rental market.
Any real estate investor looking for great deals may want access to property data, mortgage records and much more from Courthouse Retrieval System. In-depth, accurate information can help any professional succeed in the industry.
Ideal locations to become a landlord
Not every rental property needs to be multifamily. There are plenty of great single family rental homes for sale across the U.S., and an investor might stand to make a great profit by capitalizing on some underutilized markets.
Nationwide, there are 25 rental markets that stand out as quality investment opportunities, according to a report completed jointly between RealtyTrac and RentRange. The best locations had the highest chance of a profit, with a strong gross yield when comparing market value for the property to rent value.
The number one spot on the top 25 rental markets list was Wichita County, Texas, RealtyTrac reported. Other markets in Texas comprised the top five, alongside Canadian County, Okla. Foreclosed houses aren't the only investment properties out there, and affordable markets can produce great results for investors.
"Buying single family homes as rentals still yields solid returns in many markets across the nation, but it is difficult for individual investors and even small-to medium-sized institutional investors to find reasonably priced inventory in markets dominated by the 800-pound gorillas in the single family rental space," said Daren Blomquist, vice president at RealtyTrac. "With this analysis we've identified the top overlooked markets where single family rentals still make good financial sense but where there is little to no competition from the big players."