Promising places to buy rental properties
Should you buy a rental home in metro Detroit? In a survey of online real estate listings in the fourth quarter of 2013, Bankrate found that the median asking price for a three-bedroom house in metro Detroit was $44,900, with a median rent of $850. Based on those numbers, an investor could recoup 22.7 percent of the investment in the first year, excluding taxes, insurance, renovations and other costs. See a map of potential investment profitability in 15 metro areas.
Median asking price for 3-bedroom house: $44,900
Median rent for 3-bedroom house: $850
Gross yield: 22.7 percent