Attention: Real Estate IRA Owners: All Property Management Reveals Top 10 Rental Real Estate Markets for 2015
All Property Management, a popular resource for rental Real Estate IRA investors and the property managers who served them, has recently updated its Real Estate Ranking Report and is releasing its Q1 report, tracking 75 major metropolitan real estate markets of interest to self-directed IRA owners and anyone else interested in real estate investing.
The company recently revamped its methodology to include job growth, job-to-population ratio and the cost of carry, including property tax and insurance premiums. As a result, its historic rankings have been shaken up considerably. But it’s worth a look.
Here are the top ten markets for rental Real Estate IRA investors according to AllPropertyManagement.com.
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- San Francisco. The Golden Gate city has extremely low vacancy rates (3.6 percent) and boasts substantial increases over the past year in rents (up 5.45 percent) and price appreciation (11.15 percent). However, investors in this sought after market have to move quickly: Properties are snapped up within a month of listing, on average. In fact, San Francisco homes are the second fastest-selling properties in the country, second only to nearby San Jose.
- The big sell for rental real estate investors in Seattle is the huge momentum in rental prices. In fact, they’ve zoomed higher than the ride on the top of the Space Needle. And if you’ve been on that ride, you know it’s pretty high. Rents are up 27 percent over the year.
- The Mile High City is also posting big jumps in rental rates: Up 13 percent over the past year. This, combined with extremely low vacancy rates and price appreciation in the 10 percent range suggest that Denver is a tempting market for momentum-focused real estate investors who are interested in generating rental income.
- San Jose. Homes in San Jose and around Silicon Valley are selling like hotcakes. It only takes 22 days, on average, from listing to sale in San Jose, making the Northern California city the fastest-selling market in the country, even outstripping San Francisco. Rents are also up 11 percent, and vacancy rates are under 5 percent. If you’re a cash buyer, as many real estate investors are, you have a decided edge in this fast-paced market.
- Portland, OR. Landlords have no trouble keeping ‘heads in beds’ in Portland: It has the lowest vacancy rates in the country, at 2.7 percent. That’s pretty much ‘full rental. Property values are going up, too – 10 percent over the last year.
- This beautiful city in North Carolina has done a great job building up its technology industry and creative presence. Rents have climbed an average of 7.63 percent over the past 12 months – and the cost of carry is very low.
- This Kentucky city is an all-around terrific market for landlords, with a burgeoning tech and creative industry and some solid college basketball. The Louisville market boasts a capitalization rate (rents/home prices) of 8.35 percent – the highest among All Property Management’s top ten markets and 19th best in the country overall.
- Ok, bad weather, but a good value for investors, with vacancy rates of just 4.4 percent and rents up nicely at +5.36 percent over the year – substantially better than average. Show up as a cash buyer in the dead of winter and you’ll probably find some people happy to sell at bargain prices. Cap rates are strong at 7 percent.
- Salt Lake City. When it comes to the costs of carry (rent and property taxes), Salt Lake City is the number one most investor-friendly city in the country. And you can’t beat the spectacular views of the Wasatch Mountain Range anywhere in the city. Nearby Park City features some of the best skiing in the country.
- Las Vegas. This desert oasis boasts the best price momentum in the country at over 12 percent appreciation over the past year. Plus investors are getting a very nice cap rate of 8 percent to sweeten the deal. They get paid to wait. Veterans know that there is a boom and bust aspect to Las Vegas real estate, so new investors should be prepared to bear some volatility.
Want to learn more about Real Estate IRA investing? American IRA, LLC is one of the foremost authorities in the country on all types of self-directed or alternative IRA investing. Visit our extensive library of information online at www.americanira.com. Or call us at 866-7500-IRA(472). We look forward to serving you.
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