Buy-or-Rent analysis on three-bedroom

RealtyTrac has released a Buy-to-Rent analysis and a Buy-or-Rent analysis on three-bedroom residential properties in 285 counties nationwide. The Buy-to-Rent analysis found that potential returns from buy-to-rent purchases of three-bedroom residential properties in the first five months of 2015 decreased from the same time period a year ago in 169 of the 285 counties analyzed (59 percent).
Across all 285 counties analyzed, the average potential annual gross rental yield was 8.94 percent for three-bedroom residential properties purchased in the first five months of 2015, down from a 9.07 percent potential average potential rental return for three-bedroom residential properties purchased in the same time period a year ago in those same counties.
“As home price appreciation moderates and aligns more closely with trends in rental rates, the returns in the buy-to-rent market are stabilizing and becoming more predictable—if not as lucrative as they were for investors who purchased a few years ago near the bottom of the market,” said Daren Blomquist, vice president at RealtyTrac. “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.”
Average rental rates on three-bedroom properties increased three percent from a year ago across all 285 counties analyzed, while average home prices on three-bedroom properties increased four percent across those same counties.