Photo (cc) by AlishaV
If you’re not sure if you should sell your home or rent it out, you may want to check out Zillow’s rankings of the top 10 cities where mom-and-pop landlords can make the most money.
Some of the cities that made the list may surprise you.
“Topping the list for short-term, month-to-month profitability on a rental property is Oklahoma City, Okla.,” said Zillow, a housing analytics company. Rental property owners in Oklahoma City can expect to pocket up to $536 in monthly profits on a median home. That’s the difference between anticipated rental income and the monthly mortgage payment.
Other profitable short-term rental cities include Tulsa, Okla., Cincinnati and Miami. Click here for a full list of the top 10 short-term rental cities.
“When deciding if they should sell their home or rent it out, most mom-and-pop landlords are primarily concerned with whether or not they can cover their mortgage payment each month – they simply can’t absorb monthly losses like professional investors,” said Zillow chief economist Stan Humphries.
If long-term return on investment is more important to you and you can afford short-term monthly losses, West Coast cities top the list.
Landlords interested in long-term profits should look to San Jose, where they’ll make the most rental income: $8,927 per month or $107,124 per year. Keep in mind that when looking at long-term profits, tax benefits and accumulated home equity are also taken into account, and the majority of profits aren’t realized until the property is sold.
We recently told you that Oklahoma City is one of the fastest growing cities in the U.S., primarily because of an influx of middle-class families who are fleeing the coastal areas in search of more-affordable housing.
Do you rent out a home? How did you decide it was a sound investment? Share your comments below or on our Facebook page.