Real Estate Rental Markets

There was a strong run-up in home sale prices last year, in part due to a lot of institutional investing in foreclosed properties.  Many investors are wondering what's next, as this boom has slowed down in many markets.  

According to Realty Trac, the top five U.S. markets for average return on investment in residential rentals are Detroit, Michigan; Atlanta, Georgia; Greenville, Mississippi; Macon, Georgia and Baltimore, Maryland.  The bottom five U.S. markets are New York City/Long Island; Edwards, Colorado; San Francisco/Oakland, California; Bozeman, Montana and Nashville, Tennessee.  

 Kathy Fettke  CEO, Real Wealth Network  Source: linkedin.com

Kathy Fettke

CEO, Real Wealth Network

Source: linkedin.com

Kathy Fettke, CEO of Real Wealth Network in Northern California, says that in high-priced markets, the cost of real estate is high and the rents are low.  In high-priced coastal markets, such as San Francisco and New York, she says you're better off renting.  She tells her investors not to invest in rentals in these areas and instead, buy in cash flow states where the prices haven't yet peaked to give them appreciation and cash flow.  

In parts of California, the expansion phase is just beginning so there is a shortage of housing, Fettke says, with a stronger economy and population growth.  "It is a good time to be building and that's how we're making money in California," she says.  

 Alan Langston  AZREI  Source: linkedin.com

Alan Langston

AZREI

Source: linkedin.com

Alan Langston, Director of the largest REIA in the U.S., based in Phoenix, Arizona, disagrees with the Arizona Republic, who says that single-family properties are no longer a good investment.  He says that the Phoenix rental market is a strong one, with a lot of demand and low vacancy rate of currently less than 4%.  Property can be acquired with a cap rate return that most people who find good, almost 35 times the return you would get by keeping your money in a money market account.  

This real estate market update was provided by Alternative Investing News, providing online alternative investing video news content.  Alternative Investing News is a featured network of Sequence Media Group.  This video was brought to you by Vantage Self-Directed Retirement Plans

J.P. Dahdah

Vantage Self-Directed Retirement Plans, 20860 N Tatum Blvd Suite 240, Phoenix, AZ, 85050, United States

After graduating from The University of Arizona where he earned dual degrees in Finance and Marketing, Mr. J.P. Dahdah began his professional career in 1997 as a financial advisor with American Express Financial Advisors. In 1999, he founded Dahdah Global Wealth Management, LLC, a comprehensive wealth management company which specialized in working with business owners. In June 2004, Mr. Dahdah founded his second company, Entrust Arizona, LLC. Entrust Arizona provided self-directed retirement plan administration and custodial services to individuals and small business owners who desired to include non-traditional assets, such as real estate, as part of their tax-deferred and tax-free portfolios. Mr. Dahdah earned the Certified IRA Services Professional (CISP) designation by The Institute of Certified Bankers in 2007, and in 2009, he began hosting a weekly “Wealth Wednesdays” radio show on KFNN 1510AM. In that same year, the Arizona Small Business Association (ASBA) presented Entrust Arizona with “Arizona’s Companies to Watch” Award, an honor celebrating second-stage entrepreneurs. Experiencing an annualized revenue growth of 28%, Entrust Arizona’s client base grew to over 6,500 clients and $600M in retirement assets in less than seven years. A testament to the Company’s size, strength, and growth, Entrust Arizona re-branded and changed its business name to Vantage Retirement Plans, LLC, on January 3rd, 2012. Mr. Dahdah has been happily married since 2008 to his wife Erin and is the proud father of his daughter, Liliana Sofia and son, Juan Pablo II.