Share this post!

buy and hold Las Vegas
A strong past performance in rental growth doesn’t guarantee strong future performance. So how do you find a market with steady rental growth for the next decade? Paying attention to market fundamentals that drive rental growth will help you identify those markets with long-term growth potential. Here are some market fundamentals to research that will help you make a more informed decision when searching for rental markets to invest in.

Population

Look for markets that have sustained positive year-over-year (YoY) population growth for the last several years. This is obviously a good indicator that the market is either attracting new residents, or growing from within. Either prospect bodes well for investors as more folks generally means more demand for property.

Income

Another indicator to research is household income. Without household income growth, there won’t be healthy rental growth. If a city has a strong rental income growth but a weak household income growth, then it’s a sign that residents may be getting priced out of the market.

Crime

A decreasing crime index is generally a sign that the city is improving. Companies also study the crime index to make sure that their office locations are attractive to workers, especially those with families.

Income to Rent Ratio

This is a great metric for measuring affordability in the area. You obviously want to insure that median household income to median rent ratio is at least 1:1. A higher multiple of income to rent tells you that rents have not exceeded the residents' ability to afford them.

Employment

Taking a look at a employment growth YoY and insuring that it's trending upward is another great indicator of a healthy market. Employment growth has always been a key indicator of the economy. A growing population is not sustainable without good employment growth.

Median Home Value

With all of your other economic indicators looking good, it's also a good idea to check on property appreciation in a prospective market. Not only is price appreciation a good sign of a growing market, it may also indicate that more residents may turn to renting with escalating home prices.

When doing your research, keep in mind that all of the data you need can be found on such sites as Data USA, City-Data, and the Census Bureau. A little Googling will go a long way as well to help you determine what market is best to start building your rental portfolio in. As always, CIVIC is here to help you every step of the way...give us a call at (702) 637-2818 to start planning your next rental property acquisition.

Questions? Contact Dave Rooker Today!

Questions?

We can help!

Click the button below and we will follow up with you asap!

Contact Us
Civic Financial is an Equal Housing Lender

© 2019 Civic Financial All Rights Reserved. Located in Redondo Beach, California, Civic Financial Services LLC is a leading private money lending provider servicing the greater Los Angeles, Dallas, Phoenix, Seattle, Portland, Denver, Miami, South Beach, Tampa, Sarasota, San Diego, San Francisco, Irvine, Las Vegas, San Jose, Riverside, San Bernardino and surrounding communities. Civic specializes in short term, non-owner occupied and investment properties financing utilizing private hard money and bridge loans.

This is not a commitment to lend. Restrictions may apply. LTV limit is based on current, accurate appraised value. Civic Financial Services, LLC reserves the right to amend rates and guidelines. All loans are made in compliance with Federal, State, and Local laws. Civic Financial Services, LLC is a California Finance Lender under NMLS 1099109 and the California Department of Business Oversight License #603L321, AZ Mortgage Broker License #092863, FL Mortgage Lender Servicer License #MLD1536, NV Mortgage License MB4419, NV Broker License #4443, NV NMLS ID #1410002, OR Mortgage Lending License #ML-5282, UT DRE Mortgage Entity License #10570639. Civic Financial Services, LLC is an equal opportunity lender. Powered by Lenderd.com - Mortgage Websites

X

Contact Us Today!

Lookin' Forward to Working with You!

Contact Dave Rooker (702) 637-2818
Contact Dave Rooker
Loan Status