It also depends upon the market, and borrowing from the bank can be problematic (for mortgages). It's easy to use up all of your borrowing power. In the US, mortgage closing costs can easily add on 3% of the property value, plus Sellers always prefer cash buyers. I just aim to pay cash, reap in the returns, then repeat. If you find a Seller financing property then you hit gold. Plus having a handful of fully paid off properties is nicely setting up a retirement package, and you can enjoy all of the returns with very little costs attached.
So, in the US, does anyone have any particular markets to be looking at right now? Most of my experience is in the greater Washington, DC metro area which is mostly expensive these days. But it is a strong rental market as many people come to DC for a short period (political appointees, civil servants trying to get a grade increase and then go home, federal contractors and such). My MD house is also near a military base that has many civilian jobs as well.
But I would like to look at a less expensive market that still has a strong rental component.
I used to live in the DC area, property is expensive although returns are not horrible.
As I recall studios were 200-250k in DC, renting for US $1500/month, now probably closer to 2k per month.
Single family homes in Arlington VA were 600-700k, if you get one with a basement you can rent the rooms out individually and get 5k per month. Prices drop considerably the further south you went, still having demand in Alexandria and homes were just 200-300k. I never got too familiar with Maryland.
Single family homes in DC are easily 1m and probably now much higher. The returns depend upon how many units you have. They don't have to be in good condition either people will rent anything. I knew of some people who had 10 bedroom homes earning on average of $1200/month per room. That was then, probably higher now.
Huh...Utah, never thought of that...guess I figured all those huge-family Mormons would be having their own large houses and such, very family and home-oriented states. But at some point they must have been single so there must be some kind of rental market. Maybe decent tenants as well, seems less drug usage...
Never been to Utah, know mostly East Coast areas/NE-Mid-Atlantic (lived in MA, NY, NJ, MD, VA, WV). Briefly lived in the Cleveland area which has some of the cheapest real estate around and lots of decent suburban neighborhoods. Owned a house there but was never a landlord so have no idea of rents.
Probably need to go back and do a proper shopping trip in the fall and get a place or two. I have been looking near my brother in Washington County, MD (outside Hagerstown) as most single family houses are well under 200k and yet still rent for about 1000 per month and the property taxes are low. I had hoped he could manage a property but he's a bit crazy- he could do the HVAC, electric, and plumbing but not collecting rent, taking phone calls and such.
200k for Hagerstown is too expensive imo.
Regarding Utah, St. George is up and coming, and close to Vegas.
Nowadays, youth in the US are required to move around a bit, for education (rotations/training) and work. The new thing well at least when I was graduating is the go somewhere for 6 months then hop around to the next to get exposure in many cities. A lot of landlords will not rent to these people, whether they are a foreigner (no tax ID so can't run a credit report), or the short term (<12 months). Landlords and apt complexes just say no. The going rents would be 800-1000/month, but these people would be forced to pay 4-6k per month for a short term rental, and they do it. A lot of companies also pay this. I have one company who is renting 3 of my homes at the same time at a 350% premium. They told me they need one more starting next week. In fact I will buy more property just to meet their demand.
A lot of people in America have a "can not" attitude. For me, money speaks and we get it done.
Too afraid to buy anything in Hagerstown, high taxes and low quality tenants. Places like Boonsboro, Sharpsburg, Keedysville (brother lives in the last one) are nice.
But, yes, I think it's a bit of a bubble right now so not buying. I am shocked by the prices in Frederick where my rental house is...definitely bubble territory.
Frederick is definitely close enough to gov work that any price drop would bounce back at some point I reckon.