Thursday, September 26, 2013

SMART INVESTOR: 25 'Hidden Gem' Real Estate Markets Around The US

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Thursday, September 26, 2013

25 'Hidden Gem' Real Estate Markets Around The US

For 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."