Owning income-producing properties has always been a great way to supplement your income. However, with the recent run up in home prices many investors have wondered if now is not the best time? After all, as home purchase prices increase, so do the associated mortgage payments (if applicable). A recent analysis aimed to analyze 50 metro markets throughout the nation to determine typical monthly rental prices compared to mortgage prices. We discuss some of these findings below.
Better to rent out your property?
An interesting finding from this study was that 33 of the 50 largest U.S. metro markets feature rents higher than typical monthly mortgage payments. In other words, 66% of properties in these cities would likely produce income as rental properties. The top 10 metro cities ranked in order of their typical respective rental income amounts are as follows:
- 1. Memphis, TN: +$556/month
- 2. Miami, FL: +$522/month
- 3. Atlanta, GA: +$422/month
- 4. Birmingham, AL: +$403/month
- 5. Tampa, FL: +$384/month
- 6. Indianapolis, IN: +$331/month
- 7. Orlando, FL: +$314/month
- 8. Charlotte, NC: +$290/month
- 9. Oklahoma City, OK: +$279/month
- 10. Detroit, MI: +$268/month
One of the best ways to accumulate wealth is through owning investment properties. As demonstrated by this analysis of 50 metro areas across the country, there are many opportunities to supplement your income by investing in rental properties. If done properly, a rental property should be able to pay for itself while also generating extra income. This additional income can be reinvested in more properties, applied to a retirement account, or even cover the costs of your primary residence.
At Live South Florida Realty, Inc. we have assisted many clients build their real estate investment portfolios. Are you looking to buy or sell a property in South Florida? Now more than ever, it is critical to have a qualified real estate team and the proper search tools behind you. At Live South Florida Realty, Inc., we have been a leader in the South Florida market for many years. Let our team of professionals assist you with buying or selling your piece of paradise today! In addition, our recently launched “Florida Home Search” app is now available on the Apple App Store and Google Play Store. With real-time MLS feeds, this app lets you set your own alerts to notify you as soon as a property meeting your needs hits the market. Furthermore, it will also let you know of recent closed sales in your area so that you may be even more educated on the market. Be sure to download this app for your smartphone or tablet today!