Report: Austin Rental Market Good For Investors
The company behind those “We Buy Ugly Houses” billboards just released a study on the best cities to invest in rental properties, and Austin made 24th on the list.
HomeVestors of America produced the ranking with the help of Local Market Monitor, a real estate analysis firm. It found that Austin had a “risk-return premium” that was 1.3 percent better than the national average of 5.3 percent.
In other words, investors should demand a return of 6.6 percent, on average, if they are investing in a rental property in Austin. That would be in addition to any rental income left over after costs like mortgage payments and repairs.
A report issued in April by real estate analyst Marcus and Millichap predicted that rents will rise by an average of 4.2 percent in Austin this year.