Finding a positive cash-flow residential rental property can be challenging especially on the Monterey Peninsula. In the following study, only 9.4% of zip codes surveyed yielded a positive net cash flow of $5000 or more.
ATTOM Data Solutions, a real estate tracking firm, identified the places where landlords can still find income-producing properties. The research team looked at 8,841 U.S. ZIP codes to find the best rental properties with cash-producing opportunities.
Researchers found that buying the rental property is not always cost-effective. For more than half of the ZIP codes analyzed, purchasing a single-family rental property may lead to a negative net cash flow when purchasing a median-priced property with a 25 percent down payment that’s rented out at the median rental rate.
On the other hand, 834 other ZIP codes could find investors being able to buy a median-priced home as a rental and produce annual net cash flows of $5,000 or more, according to ATTOM Data Solutions. In another 48 ZIP codes, investors may even see potential annual net cash flows of $10,000 or more.
The ZIP codes offering some of the highest percent cash-on-cash return are:
74126: Tulsa, Okla.
63115: St. Louis
19103: Chester, Pa.
48234: Detroit
08104: Camden, N.J.
Source: ATTOM Data Solutions
