There are several reasons to consider investing in real estate according to the document. Millions of households are renters due to declining homeownership rates as homeownership has become unaffordable or undesirable for many millennials. Technology has made real estate investing easier and more accessible. Investing in lower grade properties, which are smaller, older, and lower priced, can provide higher gross yields for investors.

1. Why Invest in Real
Estate?

2. • According to RentRange® data, approximately 15 million
households in the U.S. are renters
• There has been a shift in the perceived “American Dream”
• For many millennials, homeownership is either unaffordable or simply
not aspired to which has contributed to declining homeownership rates
since 2007.
• Technology and advances in financing options have made it
easier than ever before to be a residential property investor
regardless of location
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Source: RentRange®; U.S. Census Bureau

3. The
highest
rental
spikes in
Q1 2017
Source: RentRange®
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4. Where to find
the highest
gross yields
Source: RentRange®
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5. Defining property grades:
Lower grade being smaller, older, lower priced housing
stock, typically experience higher gross yields
0
5
10
15
20
25
0.00 50,000.00 100,000.00 150,000.00 200,000.00 250,000.00 300,000.00 350,000.00 400,000.00 450,000.00 500,000.00
YIELD%
VALUE $
A++
D
C-
C
C+
B-
B
B+
A/A-
Source: RentRange®
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6. Top 100
Metropolitan
Statistical
Areas (MSA’s)
by yield grade
in order of 2017 yield;
green indicates yield higher
than estimated
C- Cleveland, Youngstown, Detroit, Macon GA
C Milwaukee, Peoria, Dayton OH, Rochester NY, Tulsa OK, McAllen TX, Memphis, Montgomery AL,
Toledo OH, Lansing MI, Oklahoma City, Indianapolis, Columbia SC, Cincinnati, Akron OH, Canton OH,
St. Louis, Pittsburgh, Chicago, Columbus OH, Houston
C+
Allentown PA, Omaha, Little Rock, Baltimore, Savannah GA, Buffalo, Greensboro NC, Fayetteville NC,
Dallas-Ft. Worth, Kansas City, Greenville SC, Springfield MO, Philadelphia, Winston-Salem NC, Tampa,
El Paso*, Lakeland, Palm Bay FL, Atlanta, Pensacola, Ocala, Jacksonville FL, Charleston, Harrisburg
PA
B- Charlotte, Richmond VA, Miami, Punta Gorda FL, Knoxville TN, Port St. Lucie FL, Virginia Beach,
Jacksonville NC, San Antonio, Albany, North Port-Sarasota, Bakersfield CA, Deltona-Daytona Beach FL,
Lexington KY, Providence RI, Lancaster PA, Cape Coral-Fort Myers FL, Raleigh NC, Nashville, Orlando
B-
Minneapolis, Austin, Washington DC, Myrtle Beach SC, New York, Las Vegas, Boston
B+
Colorado Springs, Fresno CA, Tucson AZ, Lake Havasu AZ, Asheville NC, Spokane WA, Eugene OR,
Albuquerque, Phoenix, Denver, Portland OR, Barnstable MA
A/A-
Seattle, Riverside-San Bernardino, Stockton CA, Modesto CA, Vallejo CA, Sacramento
A+
San Francisco, Santa Rosa, Ventura, Los Angeles, San Diego, San Jose, San Luis Obispo
Source: RentRange®
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7. Top 10 under-supplied markets in 2016
When demand outpaces supply, investors in the market
are able to charge higher rents and expect lower vacancy rates
E/P Ratio Vacancy
1 Lima, OH 367.8 4.80%
2 St. Cloud, MN 270.1 4.39%
3 Modesto, CA 131.1 9.56%
4 Lewiston, ID-WA 446.6 10.99%
5 Sheboygan, WI 73.9 4.68%
6 State College, PA 16.8 1.01%
7 Janesville-Beloit, WI 18.4 4.94%
8 Lancaster, PA 18.3 5.42%
9 Boulder, CO 14.9 7.88%
10
San Luis Obispo-Paso
Robles-Arroyo Grande,
CA
14.1 7.07%
Source: RentRange®
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8. www.investability.com

9. Have questions? Visit us
online at
www.investability.com