Calling all investors, the wintertime off-peak period can be the ideal time of the year to obtain single-family rentals, as outlined by new information released by HomeUnion, a web-based real estate investment and management firm.
The average cap rate for SFRs during the winter months was 6 % last year compared to 5.3 % in the summer, the report shows. What’s more, investors pay 7.2% less per square foot for the same property in the winter as they do during the spring and summer buying season.
“Based on seasonal cap rate fluctuations, our study conclusively found that early winter is the best time to acquire SFRs,” says Steve Hovland, director of research for HomeUnion. “In many metros, median home prices drop substantially during the colder months, while rent losses were marginal for investors. Winter is the perfect time to acquire solidly performing SFR assets in cold-weather metros such as Pittsburgh and Chicago, as well as int he Sun Belt markets of Jacksonville, Tampa, and Greenville, S.C. These markets all ranked among our top 20 metros.”
Where Investors Can Find the very best Deals Now
San Francisco: $920,000 vs. $1.2 million
Milwaukee: $70,000 vs. $92,000
Philadelphia: $127,000 vs. $161,300
Chicago: $128,000 vs. $225,000
Columbus: $110,000 vs. $149,800
Boston: $247,000 vs. $300,000
Cincinnati: $74,900 vs. $115,000
Cleveland: $62,000 vs. $80,100
Greenville, S.C.: $86,250 vs. $140,000Even though Tampa did not make the top 10, we still have some amazing deals on homes here during the winter months. We have been working with several buyers, who are submitting full price offers and being out bid during the “Highest and Best” requests from sellers. So if you have been considering investing in real estate, now is an ideal time to finish up 2016.
Nick & Cindy Davis with RE/MAX Premier Group are Certified Investor Agent Specialists (CIAS) and have a property management department within our team to assist not only in the purchase, but obtaining a tenant and assisting you with the Property Management aspect of your investment too. We are always just a click here or call to 813-300-7116 away.