LAS VEGAS — Orlando is the nation's top market for investors looking to buy and sell single-family rental properties, according to online marketplace Roofstock.
Co-founder Rich Ford released his Top 10 list Wednesday during the National Association of Real Estate Editors Spring Conference in Las Vegas.
He told GrowthSpotter the region's strong tourism and employment growth, rental pool and affordable home prices combine to attract investors from across the country. The online market typically lists between 300 to 500 rental properties for sale at any time, and properties in Orlando sell fast.
"We're looking for supply at this point," Ford said.
Roofstock acquires most of its listings from institutional investors and real estate investment trusts that are divesting of a single-family portfolio. In strong markets like Orlando, the firm welcomes listings from smaller sellers and even individuals because the yields are high.
"There are certain markets, like Phoenix and California, where yields are low, so people are willing to sell but not rent," he said.
Metro Orlando hits the sweet spot.
"If we can buy a $175,000 house that rents for $1,500 a month, that's $18,000 in annual income," he said. "That equates to a 10 percent gross yield. You can't get those kinds of yields when home prices are above $300,000."
Orlando was followed by Raleigh, Austin, Charlotte, Salt Lake City, Houston, Atlanta, Phoenix, Seattle and Tampa.
Regarding Tampa, Ford said the metro area has one of the nation's strongest employment forecasts.
"Tampa is home to approximately 50 hospitals that support jobs in the healthcare sector," he said. "Another major employment generator is MacDill Air Force Base, which hosts the military's command headquarters for the Middle East and special forces."