Buy-to-Rent Investor Strategy Stays Strong

A recent report by RealtyTrac found that across the 285 U.S. counties studied, buy-to-rent remains a strong strategy for real estate investors. Although the average potential rental yield was slightly down (from 9.07 percent last year to 8.94 percent this year) buy-to-rent returns still increased in 116 of the 285 counties analyzed.

“Buying rentals continues to be a brilliant strategy that allows investors to hedge their bets in a real estate market shifting away from homeownership and toward a sharing economy,” said Daren Blomquist, vice president of RealtyTrac.

Counties with the highest potential rental returns for 3-bedroom properties purchased in the first five months of 2015 were Clayton County, Georgia in the Atlanta metro area (24.05 percent annual gross rental yield), Bay County, Michigan in the Bay City metro area (19.23 percent), Mahoning County, Ohio in the Youngstown metro area (19.04 percent), Bibb County, Georgia in the Macon metro area (18.11 percent), and Philadelphia County, Pennsylvania (17.67 percent).

Additionally, the analysis found that buying is still more affordable than renting in 66 percent of counties.