OfflineFor investors looking to get into the real estate market, one factor should be considered above all others: location, location, location.
RealtyTrac has combed the country to find 25 "hidden gem" markets — areas that are little-known, aren't swarming with big institutional investors, and boast sizeable yields.
The firm based its study on a combination of five factors: median home value (single-family, three-bedroom home), unemployment, median rental value, institutional investor sales, and gross yield.
In the markets that made up the cream of the crop, institutional investor purchases accounted for 5% or less of all residential sales (the less competition from Big Players, the better for average investors) in the three-month period ending in July, and the unemployment rate was 7.5% or lower.
“Buying single family homes as rentals still yields solid returns in many markets across the nation, but it is difficult for individual investors and even small-to medium-sized institutional investors to find reasonably priced inventory in markets dominated by the 800-pound gorillas in the single family rental space,” said Daren Blomquist, vice president at RealtyTrac. “With this analysis we’ve identified the top overlooked markets where single family rentals still make good financial sense but where there is little to no competition from the big players."
Gross yield: 9.8%
10. Allegheny County, Penn.: Gross real estate investor yield totals 9.8%.
10. Allegheny County, Penn.: Gross real estate investor yield totals 9.8%.
Google Maps
Investor sales: 2.9%
Unemployment: 6.9%
Median home value: $126,000
Median rent value: $1034
Gross yield: 9.8%
9. Jefferson County, La.: Gross real estate investor yield totals 9.9%.
9. Jefferson County, La.: Gross real estate investor yield totals 9.9%.
Google Maps
Investor sales: 3.0%
Unemployment: 7.3%
Median home value: $153,000
Median rent value: $1260
Gross yield: 9.9%
8. Schenectady, NY: Gross real estate investor yield totals 10%.
8. Schenectady, NY: Gross real estate investor yield totals 10%.
Google Maps
Median home value: $153,000
Median rent value: $1278
Investor sales: 2.2%
Unemployment: 6.9%
Gross yield: 10.0%
7. Alachua County, Fla.: Gross real estate investor yields total 10.1%.
7. Alachua County, Fla.: Gross real estate investor yields total 10.1%.
Google Maps
Median home value: $139,000
Median rent value: $1175
Investor sales: 4.3%
Unemployment: 5.9%
Gross yield: 10.1%
6. Davidson County, Tenn.: Gross real estate investor yield totals 10.2%.
6. Davidson County, Tenn.: Gross real estate investor yield totals 10.2%.
Google Maps
Median home value: $149,000
Median rent value: $1263
Investor sales: 5.3%
Unemployment: 7.1%
Gross yield: 10.2%
5. Monroe County, N.Y.: Gross real estate investor yield totals 10.3%.
5. Monroe County, N.Y.: Gross real estate investor yield totals 10.3%.
Google Maps
Median home value: $121,000
Median rent value: $1,043
Investor sales: 2.5%
Unemployment: 7.0%
Gross yield: 10.3%
4. Austin-Round Rock, Texas: Gross real estate investor yields total 10.7%.
4. Austin-Round Rock, Texas: Gross real estate investor yields total 10.7%.
Google Maps
Median home value: $158,000
Median rent value: $1403
Investor sales: 4.7%
Unemployment: 5.7%
Gross yield: 10.7%
Canadian County, Okla.: Gross real estate investor yields total 10.8%.
Canadian County, Okla.: Gross real estate investor yields total 10.8%.
Google Maps
Median home value: $131,000
Median rent value: $1176
Investor sales: 3.7%
Unemployment: 4.9%
Gross yield: 10.8%
2. Lubbock County, Texas: Gross real estate investor yield totals 11.8%.
2. Lubbock County, Texas: Gross real estate investor yield totals 11.8%.
Google Maps
Investor sales: 4.9%
Unemployment: 6.1%
Median home value: $111,000
Median rent value: $1,089
Gross yield: 11.8%
1. Wichita Falls, Texas: Gross real estate investor yield totals 13.4%.
1. Wichita Falls, Texas: Gross real estate investor yield totals 13.4%.
Google Maps
Investor sales: 4.5%
Unemployment: 6.8%
Median home value: $84,000
Median rent value: $938
Gross yield: 13.4%
Read more: http://www.businessinsider.com/25-hidden-gem-real-estate-markets-2013-9?...