Author Topic: Zillow's Top 10 markets for Mom and Pop Landlords  (Read 1495 times)

tomsang

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Zillow's Top 10 markets for Mom and Pop Landlords
« on: August 15, 2014, 08:31:25 AM »

Johnny Aloha

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Re: Zillow's Top 10 markets for Mom and Pop Landlords
« Reply #1 on: August 15, 2014, 01:28:01 PM »
I doubt Dallas is as profitable as they say, especially since their method is only difference between mortgage and rent.  Dallas (and TX in general) has very high property taxes and insurance, coupled with foundation problems, will erode any profit very quickly.  It's a very strong economy, but finding a decent buy and hold is hard.


DoubleDown

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Re: Zillow's Top 10 markets for Mom and Pop Landlords
« Reply #2 on: August 15, 2014, 03:35:58 PM »
I have no experience with any of those markets, but their methodology for determining profitability does seem dubious indeed!

"Short-term profit is calculated assuming the home was purchased in May 2009 with 20 percent down on a 30-year fixed mortgage at 4.5% [and then subtracting from rents received]."

That says more to me about the state of those markets in May 2009 than anything else, making this list pretty useless from an investment point of view IMO.