The 10 markets with the best ROI are…
According to this research, the US markets with the best ROI are: Houma, Louisiana; Dothan, Ala.; Johnstown, Pennsylvania; Beckley, W. Va.; Decatur, sick; Shreveport, Louisiana; Peoria, chor.; Sumter, South Carolina; Texarkana, Texas; and Jackson, Tennessee.
Researchers touted the dynamism of top-ranked Houma when it comes to business investment, noting its housing value index of $149,871 in average property value, with an observed rent index of $1,441. The rent equates to 0.96% of the property value, which implies that in keeping with the study, the payback period for a typical investment property down payment (20%) may be as little as 20.8 months, which is sort of half of the national average payback period of 39.6 months.
Researchers also touted the merits of South Alabama’s second-ranked Dothan with a typical property value of $166,459. The researchers noted that the common monthly rental price of $1,553 means the rent is 0.93% of the property value, and the potential payback period for an investment property advance is 21.43 months.
“Return on investment is at all times vital,” Chris Heller, co-founder of Agent Advice, told Mortgage Professional America. “However, its importance is now heightened with increased rates of interest, which poses affordability challenges for a lot of buyers. Put simply, the stakes are higher for the overwhelming majority of investors because the percentages are that the investment will make up the majority of the budget that may be spent. This after all increases the importance of ensuring an inexpensive return on investment and avoiding the acquisition of bad assets.”
Asked if any of the findings got here as a surprise, Heller noted the disparity between eastern and western cities. He added that West Coast real estate is mostly accepted as costlier for a wide range of reasons – including construction costs often justified by earthquake risk and sheer demand.
