It's becoming even harder to find attractive properties for SFR Investors.
As home prices continue to rise, investors who focus primarily on single family rentals are beginning to struggle to find new properties to add to their portfolio. The median home price of an existing single-family home in June 2018 was $276,900 compared to $263,300 last year according to NAR.
The market for SFR's is becoming increasingly tighter and some investors find themselves in bidding wars, or moving their portfolios into less competitive markets like in the Southeast and Midwest.
Most SFR investors have stopped buying all together in California and Phoenix but are still very active in Texas, Atlanta and Florida. The Midwest continues to be more popular each year as there are still some good deals to be found.
The volume SFR are buying has decreased according to ATOM, at the current level, professional investors account for approximately 2.0% of all single-family home and condo sales in the U.S. The figure is slightly up from 1.9% percent in the first quarter of 2018 but down overall from 2.3% a year ago.
While investors are still able to raise rents, with the current affordability problems most cities are currently dealing with, the rents are usually still not high enough to justify new purchases in today's market.
The 2018 average rental price for a 3 bedroom home in the U.S is currently $1,127, in order for the deal to remain profitable, new purchases would need to rent for approximately 1% of the properties purchase price. Given the current median home price in the U.S is $276,900 - that’s a long way off the 1% rule. However, finding good deals on rental homes in the $120,000 to $150,000 is still possible but usually highly competitive.
Ettro Capital makes it easy for professional investors to stay in competitive real estate markets whilst diversifying their portfolios. Using state of the art technology and a team of experts, we buy raw, underutilized land and develop it to sell to home builders and developers in some of the most desirable areas in the Pacific Northwest. Our real estate investment fund is the perfect fit for SFR investors struggling with bidding wars, low inventory markets and the current affordability problems most of these markets are currently facing.Why continue to struggle finding the right properties that can follow the 1% rule, deal with management companies and the never ending maintenance requests when Ettro Capital do all of the legwork and provide the same net results for your investment dollars. We welcome any questions you may have and are always just a phone call or Email away.