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Area homes get nearly 15% return a year

Lucas County appears to be one of the most attractive markets in the country for investors looking to buy and rent out single-family homes.

In a report published today, real-estate data tracking firm ATTOM Data Solutions identified the county as having the fifth best potential for future growth in returns on single family rentals. The report looked at factors including average market rate for rentals, income growth, and property values.

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ATTOM Data Solutions has identified Lucas County as having the fifth best potential for future growth in returns on single family rentals.

For Lucas County, the group said the median price for a three-bedroom home was just a tad more than $88,000, while monthly rent for one of those homes this year projects to be $1,066.

“You’re getting a nearly 15 percent return on your money annually, which is a pretty good investment. That’s a gross return not including expenses, but it certainly ranks very high compared to the rest of the country,” said Daren Blomquist, senior vice president at ATTOM.

While Lucas County’s median sales price was essentially flat from the first quarter of 2016 to the first quarter of 2017, rents rose by 5 percent. The group said average weekly wages were up 7 percent year-over-year based on third quarter data. Mr. Blomquist said wage growth outpacing rent and home prices is a good sign for growth in the market in the future.

One of the primary reasons Lucas County scores so well from an investment standpoint is the affordability here. While rents certainly vary by market, they don’t vary by nearly the same scope as do home values.

Take San Francisco, for instance. As one of the hottest real estate markets in the country, the median sales price reported by ATTOM was $513,500 — nearly six times higher than Toledo. Rent in San Francisco averaged $3,251 a month, just over three times more than Toledo.

“Investors out there are chasing returns and they’ve picked over some of the markets like Phoenix and Atlanta, and now they’re looking for other markets where they can get rental returns,” Mr. Blomquist said. They’re increasing going to markets like Toledo and smaller markets like that across the country.”

The report also looked at ZIP code level statistics and found that East Toledo’s 43605 has the highest potential single-family rental returns in 2017: a whopping 119.4 percent.

Contact Tyrel Linkhorn at tlinkhorn@theblade.com or 419-724-6134.

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