DALLAS - Stockton and Modesto were near the top of the list when it comes to best markets for investing in homes as rental properties, according to Local Market Monitor and HomeVestors of America Inc. The two cities were also on the top 10 list at the beginning of the year.
Las Vegas was number one on the list, followed by Stockton, Modesto, Detroit, Vallejo, Visalia, Port Stl Lucie, Florida, Warren, Nevada, Reno and Flint, Michigan.
In the case of Stockton and Modesto, the fact that unemployment is still high is a plus when it comes to finding real estate opportunities for investors.
"In the short run it's tough to rent out houses in markets with high unemployment, but that's where the long term opportunities lie," said Ingo Winzer, president and founder of Local Market Monitor. He also said that in another couple of years "most of today's best opportunities won't look as good, which means they won't look as bad."
Local Market Monitor is a real estate forecasting solution, and offers investors in homes and home mortgages local market risk intelligence to make informed decisions. Using a proprietary formula called the Equilibrium Home Price, Local Market Monitor determines if markets are currently over or under valued, equipping users with a long-term risk and investment perspective. Covering over 300 local markets, Local Market Monitor also presents key investors with a 12, 24 and 36-month home price forecast. The solution includes sorting capabilities allowing subscribers to view and compare real estate markets along various metrics, including Investment Suitability Ratings to identify opportunities based on individual investing goals.