April 05, 2013 02:00PM
Ocala was fourth on the list, with a cash purchase capitalization rate of 10.23 percent in a market where the median sales price for a three-bedroom home is $75,357. Palm Bay placed sixth, with a 9.77 percent cap rate and a median sales price of $91,950.
Other Florida markets on the list were Jacksonville, Deltona, Tampa, Port St. Lucie, Orlando and Lakeland.
“Buying single family homes as rentals that actually generate good monthly cash flow has become more difficult over the past year, as institutional investors crowded into the market, snapping up tens of thousands of properties in 2012 alone,” said Daren Blomquist, vice president at RealtyTrac, in a statement yesterday. “But there are still opportunities for the more conservative, individual investor to buy rental homes that generate a healthy return on investment.” –Hiten Samtani