Best Real Estate Investment:Investment Property: Top Cities Nationwide for Cap Rate & Cash Flow

Posted under Real Estate Investment by admin on Friday 7 August 2009

Article Summary:

It is possible to make a lot of money in real estate but let is be honest - it comes with it’s challenges, some of which are pretty huge. So let iss take a look at whether YOU can be a successful real estate investor.Read InvestorLoft’s quarterly report on the best cities for both cash flow and cap rate investment property.

Article Content:

As big believers in quantitative data, InvestorLoft consistently tracks the numbers behind our site’s listings. We want our members to have access to the most timely data possible to help with their investment property purchase decisions, so we’ll be publishing quarterly results like those in this blog. Forbes.com and Forbes Magazine recently utilized our data in their article The Landlord Game, and we’re now passing on an enhanced version of that data to you! The following numbers were derived by analyzing all of the listings on InvestorLoft and then crunching those numbers a few different ways and under different scenarios (varying down payment amounts, types of residence, etc.).

Note on Cap Rate calculations:
The following is the method by which our cap rate calculations have been derived:

CR = ((income - expNotMtg)/PP)*100)
Cap Rate = ((income less expenses not including mortgage)/Purchase Price)*100

All results were multiplied by 90% to account for the following variances and arrive at more conservative figures:

Rent:

Top Cities Nationwide for Cap Rate - National Totals
(includes both single-family and condo/town homes - multifamily excluded)