Mashvisor Real Estate Podcast: Episode #18 (Transcript)

Top 5 Rental Properties This Week: May 23rd-29th, 2021

In the eighteenth episode of the Mashvisor Real Estate Podcast: Top 5 Rental Properties This Week Mike Richardson, the star of the Mashvisor Investor Consultant Team, presents and analyzes the 5 top-performing traditional and Airbnb investment properties in the US housing market. These properties are handpicked by Mike to generate positive cash flow and high return on investment right away.

Real Estate Podcast Transcript

This is the Mashvisor Real Estate Podcast: Top 5 Rental Properties This Week, Episode Number 18.

Hey, guys! I am Mike Richardson, Senior Investor Consultant and Product Specialist at Mashvisor. I am so excited to welcome you back to another episode of our real estate podcast: Top 5 Rental Properties This Week. We are now at episode number 18.

As the weather is heating up, so is the real estate market. Right now the residential market is boiling with activity. And the market will be getting more and more busy as we move into the summer months.

Summer has always been the hottest season in the US housing market. But never to this extent. Recently health authorities have started to relax some of the travel bans and other restrictions related to the Covid-19 pandemic.

So property buyers and sellers are in a hurry to get back into the market. Homeowners are starting to list their homes for sale, after the slowdown in 2020. New construction is booming. And all this is not enough to catch up with the unseen demand from property buyers – both home buyers and real estate investors.

So, if you are thinking of buying an investment property this year, now is the time to act. Before even more buyers enter the market and prices become too high.

And if you’re wondering where to start, you have come to the right place. This week we are going to talk about the 5 absolutely best real estate investing opportunities in the US market.

I’ve used the Mashvisor real estate software platform to look for the most profitable rental properties that are currently available for sale. I started my search in the top markets that I know perform best for investors. But, guys, recently listed properties were gone before I had a chance to record this episode. That’s how hot the market is at the moment. And that’s how hot these investment opportunities are.

In my search, I looked at a number of different markets and price points. I looked at both traditional and Airbnb rental properties. I know that every investor has his or her own preferences and requirements, so I tried to meet the expectations of as many of you as possible.

You know, usually research like this will take me a couple of weeks, or even months. Imagine collecting all the data, running all the numbers, for dozens of markets, hundreds of neighborhoods, and thousands of properties. But with Mashvisor I was able to do all the necessary research and analysis into just 15 minutes. To show you the most lucrative real estate deals on the market.

You can do the same. You can research and analyze markets and properties like a professional with the help of Mashvisor. We get our big data from dozens of reliable sources such as the MLS, Redfin, Airbnb, and other valid traditional sources. Then we run our machine-learning algorithms on it.

And that’s how we help you analyze real estate markets and investment properties with a few clicks of a button.

So, guys, before we get started with the best investment properties for this week, let me assure you that Mashvisor is not involved in the sale of the properties that I’m going to talk about. We are not a brokerage. We don’t buy and sell properties. What we do is analyze the investment potential of houses across the US market to help you find the most profitable properties that meet your budget and other requirements. So, let’s get started.

Here are the top 5 rental properties for this week:

First on our list is in Boise, Idaho.

As you already know, Boise is the capital city of the State of Idaho. And as the principal city in the state, it has a lot to offer to its residents. The strong economy and healthy job market boost the population growth in Boise, which exceeds the national average. Boise benefits a lot from being located in Idaho. Both population wise and economy wise, Idaho was the second fastest growing state last year.

Moreover, it’s currently one of the states with the lowest mortgage rates. This is great news for beginner investors as well as other investors who will need to take a mortgage loan to buy a rental property. This is good, considering the relatively high property prices. According to Mashvisor’s data, the median price of real estate listings is $733,000 at the moment in Boise. But I’ve been able to find for you a house which is listed for much less.

The property that we have for you is a single-family residential. The address is 3800 W Rose Hill, and that’s in Central Bench, Idaho, and the zip code is 83705. The asking price is $449,900. It will offer you 4 beds and 1 bath with 1,500 square footage. So a great property located in a charming area. It’s only been on the market for 8 days now.

The occupancy rate for a traditional investment in a market like this is averagely around 95%. Its potential rental income is $3,170. With its monthly mortgage putting 20% down is $1,485. With your recurring expenses at $934 including insurance, management, maintenance, and property taxes. And if you live in the State of Idaho and you exclude the management fees, your cash flow will rise. Your cash flow will be around $1,000 a month and your cash on cash return at 13.09% and your cap rate 6.81%.

This is a stable investment for investors who are looking for great and strong traditional markets, who want stability and potential growth.

There’s been a lot of talk about potential appreciation, especially with a property like this. So I highly recommend that you reach out to an experienced realtor and explore this property. It will not stay on the market for too long.

Next on our list is in the City of Sedona, Arizona. Here’s where our cash on cash return starts to rise.

The Arizona housing market is a popular investor destination in 2021. Sedona is probably not the first place that comes to mind when you think about investing in Arizona, but it should be. This desert town near Flagstaff is an investor’s dream-come-true. You have the unique natural landscape which offers unforgettable experiences to visitors. At the same time, you have the rich arts scenery and community. Whether you look for indoor or outdoor tourist activities, Sedona has so much to offer. No wonder that it is one of the best places to invest in Airbnb in the State of Arizona.

And the best news is that short-term rentals are fully legal in this town, including non-owner occupied properties. This means that you can easily manage your own vacation rental property if you prefer not to hire a professional property manager, without running into problems with local authorities.

he address is 20 Hohokam Drive, and this is in Sedona, 86336.. The asking price is $765,000, offering you 4 beds, 3 baths, 1,828 square footage. Beautiful looking property located in a great park of the Sedona area. The property has no HOA. It’s only been on the market for 6 days now.

The average Airbnb occupancy rate in this market is 84%, one of the highest in the entire country. This property has the potential rental value through an Airbnb strategy of $8,281. Putting 20% down, your monthly mortgage will be $2,505. Your recurring costs including management companies will be $3,191. Putting your cash flow at $2,585 and your cash on cash return at 19.26% and your potential cap rate at about 8%.

You’ll have an average annual occupancy rate of 86%. You’ll have a strong, well-structured, stable Airbnb in a fully non-regulated market. You’ll have the full flexibility of diving into an Airbnb, choosing to use a management company. We’ve already accounted for those fees. But if you’re someone who wants to exclude those fees, your cash cash on cash return will go up to 34.69%.

So this is an opportunity that you do not wanna miss out on. You must check it out right away. It will not stay on the market for too long.

Next on our list is in Durham, North Carolina.

As an investor, there is one thing that you need to know about the Durham market this year. It was ranked as the #1 US market for overall real estate perspectives by the annual report of the PWC. While the pandemic had a negative impact on many real estate markets, this is not the case with Durham. To the contrary, Durham moved from #2 in 2020 to #1 in 2021. The report goes as far as calling it “Magnet City”. That’s because of the businesses and the people that have been moving into the city. And we all know that the job market, work opportunities, and population growth are some of the most important factors that determine how good a real estate market is for investing.

Based on these criteria, Durham is really a top market. Especially for long-term, traditional rental properties.

Our data at Mashvisor shows that the median property price in Durham is $413,000 right now. This makes it a relatively affordable market with the prices close to the national average. Meanwhile, the average monthly rent for traditional rentals is about $1,600. Usually investors aim for 8 to 12% for their cap rates. But remember that this is the average value for the city. Look at the opportunity I have for you today.

It’s a single-family home. The address is 907 Holloway Street in Durham, North Carolina. The zip code is 27701. The asking price is $194,900. It will offer you 3 beds, 1 bath, 1,047 square footage. This is a property geared specifically for investors. In the description it starts with “Attention Investors and First Time Homeowners!”. This is a deal that’s near Downtown that you must look at. It’s only been on the market for 5 days now.

Its potential traditional income is $1,857. With putting 20% down on a deal like this, your monthly mortgage will be $639, and your recurring expenses $564, helping you cash flow around $654. Your cash on cash return is 16.72%, and your cap rate is 7.96%, with a 96% occupancy rate.

This is a deal that you have to check out. If you’re not gonna be using a management company, your property cash on cash return will rise up to 21.47%. So this is one of the highest rates that you can expect for a traditional investment. So if this sounds like a deal for you, please check this property out right away.

Next on our list is in Panama City Beach, Florida.

It’s hard to find a place in Florida’s market which is not great for Airbnb rental properties. Panama City Beach is one of the absolutely top locations for rental properties. I mean, you have the endless white-sand beaches, you have the clear waters of the Gulf of Mexico. You have all the tourist attractions to bring visitors throughout the year – whether it’s the fishing tiers or hiking trails. The warm, soft climate assures that people from Florida as well as the rest of the US all year round.

Another factor which makes Panama City Beach for investing is the affordable property prices. Despite being a favorite tourist destination, the town has managed to maintain reasonable home prices. Still, it is a seller’s market, so you might want to hire a real estate agent to help you with  your purchase.

Since we’re talking about Airbnb rental properties in Panama City Beach, we have to consider the local short-term rental regulations. Like most of Florida, this town is quite relaxed when it comes to vacation homes. They are legal and don’t face much regulations and restrictions.

The property that we have for you today is an absolutely gorgeous single-family home. The address is 1002 Barracuda Drive, and that’s in Panama City Beach, Florida. The zip code is 32408. The asking price is $450,000, offering you 4 beds, 2 baths, 2,096 square footage.

This property is geared towards an Airbnb. Its potential Airbnb income is $5,236 based off Airbnbs that are performing in that area. Putting 20% down on a deal like this, you will pay off your monthly mortgage of $1,460, including your recurring expenses at $2,014. You’ll cash flow $1,754, and your cash on cash return after all of your expenses and management fees is 21.49%, and a cap rate of 8.59%. This is a deal that you don’t wanna miss out on. Great rates of return for an Airbnb. The occupancy rate is 58%, so it’s stable, it’s strong, and it offers you good flexibility, a high nightly rate.

So this is a deal you absolutely wanna consider. If these are the numbers that you’re looking for within your price point, please check this property out. Validate the numbers for yourself, and you will see that it is a deal you don’t wanna miss out on.

Last but not least, our number one performing property of the week is in Houston, Texas.

No matter what we say about Houston, it will never be enough to highlight why it’s one of the top real estate markets nationwide. This large, major city in Texas has everything that short-term visitors and long-term residents may look for.

Today we’re gonna look at an Airbnb property in Houston. One of the main attractions, of course, is the Space Center. But that’s not all. The Theater District, the Grand Opera, the Historic District, and so many other attractions bring over 20 million visitors per year. And many of these visitors choose to stay in an Airbnb property rather than a hotel, and this makes Houston a perfect location for this investment strategy.

With regards to property prices, they are quite affordable, especially for a large city. We’ve estimated the current median listing price at $428,000, so even beginner investors can start here. The city-wide Airbnb cap rate is absolutely phenomenal.

The property that we have for you today is a townhome. It’s fully furnished, well-renovated. It looks absolutely stunning. The address is 8532 Ariel Street, and that’s in Houston, Texas. The zip code is 77074. The asking price is only $169,900. It’ll offer you 3 beds, 3 baths, 1,764 square footage. It’s located in the best area of Houston, Texas, where all of the major attractions are located. It’s only been on the market for 19 days.

Its potential Airbnb income is $2,762. With its monthly mortgage at $554 a month, putting 20% down, your recurring expenses at $1,353 including all your expenses, you’ll cash flow $855. That puts your cap rate at 9.95%, and your occupancy rate will be 75%. Now, I want you to let it sink. The cash on cash return for this property is 24.44%. This is a dream investment.

This is a property that you don’t wanna miss out on. It offers you a strong traditional backbone if you need to switch over to a traditional strategy at any point, but its Airbnb returns are absolutely phenomenal. The price point is extremely convenient if you’ve considered getting into Airbnbs, it’s a reasonable price point for a fully functional property that you can list on the Airbnb website within a matter of days. So this is a deal you don’t wanna miss out on. Please check the property out right away.

So, guys, these are the 5 best investment properties available for sale in the US market this week. Trust me, properties like these don’t stay on the market for more than a couple of weeks, or even less sometimes. So, if you liked any of these properties, if you think any of these houses might be the right fit for you as an investor, hurry up and check it out right away. You can find a link to each of these properties on our platform in the show notes below.

Each listing comes with all the basic information that you expect to find. You can figure out the property address, description, features, amenities. Moreover, you can see a quick analysis of the investment potential of the neighborhood where the property is located. You can see how good or bad this neighborhood is for investing in traditional and Airbnb rental properties. And most importantly, each listing comes with a detailed analysis of its own investment potential. You can see the expected rental income, monthly expenses, cash flow, occupancy rate, cash on cash return, and cap rate.

You can play around and adjust the analysis in a way that you want. You can customize expenses such as adding furniture, additional fixes and upgrades, property management, and anything else. You can adjust the occupancy rate and rental rates if you want to and if you believe that you can do better than other landlords in the area. In each case, we automatically redo all calculations for you and provide you with adjusted estimates of the performance of the property.

You can download the report and analyze and share this with an agent or a friend in the real estate industry. It’s always a good idea to get a second or third opinion when investing in a rental property.

So, guys, I really encourage you to check out these properties. And even if you don’t like any of them, you can continue your own research on the Mashvisor platform. This is Mashvisor.com.

And before I go, I want to offer you something special, something that’s reserved just for our podcast listeners. This is a special discount. With promo code TOP5, you get a 7-day free trial of Mashvisor. You can test our tools, you can use the platform and decide if that’s the right fit for you. For a whole week, absolutely free. And if you decide to stay with us, you’ll benefit from a 15% discount for life. You will save about $10 a month on access to the most trusted source of real estate data in the US residential market. So, guys, it was an absolute pleasure to have you once again.

I hope that you feel more confident about your next investment property. Remember that I will be back next week with more exciting opportunities.

Meanwhile, happy investing!

To listen to more episodes of the Mashvisor Real Estate Podcast, click here.