If you are considering launching or diversifying your real estate investment portfolio, the team of experienced industry professionals at Gauntlet Funding is here to help make sure you have all the information you need to do so successfully. Although the past two years have presented unique challenges with COVID-19 impacting virtually every sector of the economy—including real estate—the market has proven surprisingly resilient. Transactional activity is already outstripping pre-pandemic levels, and with the economy returning to full-swing production, now is a great time to pursue real estate investment opportunities. When it comes to real estate, location is one of the most essential factors for long-term success. To that end, Gauntlet Funding has crunched the numbers for you to determine some of the most promising rental markets to consider and focus your search for investment rental properties to maximize your return on investment. Here’s a closer look at the factors that make the following three real estate markets a great option for investors this summer.
Due to the pandemic, the real estate market dynamics permanently shifted. Potential renters now want increased flexibility and convenience. The rise in telework translated into reduced demand for homes and apartments in urban areas as workers no longer had to worry about commute times. And with entire families now remaining in the home during the day, tenants are looking for more square footage and premium features. These factors have made Charlotte a new hotspot for rental properties, as the city offers the type of lifestyle, strong economy and growth opportunities that renters now demand. The median monthly rental income for Charlotte is a strong $1,998, with some neighborhoods like Chantilly reporting a nearly 3.5% cash on cash return.
Does no state income tax sound like a major perk to you? Well, that is exactly what Texas has to offer, making it an increasingly popular destination for people looking for a move to save money amidst the current economic turbulence. What’s more, Austin boasts strong population and employment expansion. A number of major companies—particularly in the technology sector—have recently moved to Austin, boosting the local economy and increasing the potential income of rental properties as skilled workers look for housing options. Tesla, Amazon and other key players in the economy have all opened Austin locations, which has prompted economists to forecast nearly 50,000 more jobs to be added to the city’s economy over the remainder of 2022. Investors report an average monthly rental income of $2,133, and with a number of potential investment properties still available at affordable price points, the potential profit margin for savvy investors remains quite promising.
Nashville is one of the most active real estate markets in the entire country—with properties spending on average less than 10 days on the market before being rented. Despite this insane transactional rate, the number of available properties still exceeded the number of closings last year. With significantly lower property taxes than other major urban localities and a booming local economy, real estate investors can anticipate continued housing growth in the Nashville market, making it a prime area to consider purchasing a rental property. The data definitely suggests that doing so is a potentially lucrative decision. The city’s population is steadily growing, and the great quality of life and job opportunities mean that people will continue to migrate to Nashville for the foreseeable future. Investors report a medial rental income of $1,849 per month and a traditional cash-on-cash return of 2.11%. Consider starting your search in the Hillsboro West End neighborhood, where the cash-on-cash return is a notable 6.23%.
Gauntlet Funding is a New York-based private funding group comprised of experienced and knowledgeable industry professionals who specialize in direct private lending and distressed asset financing. If you’re considering commercial real estate investing or looking for a rental loan, call Gauntlet Funding today at (631) 201-5569 to start your new financial future.