Top 10 U.S. Cities with the Highest Rental Yield 

Cities across the U.S. have seen some of the highest rental yields to date. From 2020 to 2021, home sales prices rose approximately 20%. That’s great news for real estate investors that held property pre-pandemic, but with low inventory and rising rates forcing the owner-occupied borrowers out of the market, opportunities for high-yield U.S. investment properties are abundant. Here are the top 10 U.S. cities with the highest rental prices and most affordable properties.

1. Houston, Texas 

The lack of affordable single-family homes has created a demand for rental properties in Houston. Its strong job market makes it a solid play for investors of these types of properties. 

Average Purchase Price: $496,930 

Average price/sqft: $155 

Average Rental Income: $3,455 

2. Arlington, Texas 

Arlington, a city in north Texas, is ranked 12 on the list of the top places in Texas to purchase a home, according to Policygenius. At $275,745, the average house value is 6% more than the national average, and its five-year growth rate is 63.6%. 

Average Purchase Price: $493,700  

Average price/sqft: $174 

Average Rental Income: $3,035 

3. Tampa, Florida 

Investors were responsible for purchasing 25% of homes sold in Tampa in the summer of 2021. Average rents have had the highest spike in the country, and impressive job growth in white-color professions shows no signs of slowing.  

Average Purchase Price: $508,725  

Average price/sqft: $252.65 

Average Rental Income: $3,004 

4. San Antonio, Texas 

San Antonio could be an excellent investment. The city boasts affordable property prices and excellent average rental yields per month. In 2020, approximately 40% of individuals looking to rent were out-of-city transplants, which has mostly stayed the same.

Average Purchase Price: $514,975  

Average price/sqft: $170.53 

Average Rental Income: $2,951 

5. Charlotte, North Carolina 

Charlotte, North Carolina’s robust employment market, four-season climate, and proximity to the beach and mountains make it a top destination for real estate investors looking to earn rental income.  

Average Purchase Price: $498,750

Average price/sqft: $173 

Average Rental Income: $2,796 

6. Colorado Springs, Colorado 

Colorado Springs is known to be one of the most substantial long-term real estate investments in the U.S. Since the last decade, Colorado Springs’ typical property prices have increased by around 143.7% based on Zillow’s Home Value Index.  

Average Purchase Price: $487,475  

Average price/sqft: $198 

Average Rental Income: $2,770 

7. Orlando, Florida 

Home to Disney World, Universal, and a fantastic climate, 60 million people visit Orland every year. Some of the best beaches are a drive away, and the city is famous for its gold courses, nightlife, and shopping malls.  

Average Purchase Price: $482,085  

Average price/sqft: $235 

Average Rental Income: $2,739 

8. Cincinnati, Ohio 

Cincinnati has long been regarded as an affordable city in general. In fact, Cincinnati was ranked as the 14th most affordable U.S. city to live in by U.S. News & World Reports in 2017. In addition to the generally low cost of living, Cincinnati real estate is more affordable than in many other major metropolitan areas. Cincinnati has become one of the go-to markets for out-of-state real estate investors looking to buy properties at a good price and still earn a reasonable rate of return, and prices have increased as a result. 

Average Purchase Price: $474,750  

Average price/sqft: $171 

Average Rental Income: $2,734 

9. Jacksonville, Florida 

Jacksonville benefited from Florida’s decision to loosen pandemic restrictions more quickly than other states. The city has one of the highest-performing economies in the country and a dwindling unemployment rate.  

Average Purchase Price: $501,850 

Average price/sqft: $187 

Average Rental Income: $2,564 

10. Huntsville, Alabama 

Listed as one of the top cities to purchase a rental property for cash flow in 2022, Huntsville is known for its rent growth value. Strong employment growth and low housing costs have led to equity growth of about 24%, 22% more than the national average. 

Average Purchase Price: $487,250  

Average price/sqft: $171 

Average Rental Income: $2,436 

If we assume the purchase price of each city’s house to be $500,000, here’s the rank based on the highest rental income: 

With creative loan options offering fixed terms for interest-only loans, buying down of interest rates, and long-term capital appreciation, investing in U.S. cities with the highest rental income gives you significant short-term and long-term possibilities.

Ready to reap the benefits of investing in the U.S.? 

As a company, America Mortgages’ only focus is providing U.S. mortgage financing for U.S. expats and foreign nationals. We know exactly what is required to ensure that your mortgage journey is stress-free. We qualify 97% of our client’s for a U.S. mortgage. What are you waiting for? Schedule a call with our U.S. mortgage specialist to find out your mortgage options. [email protected] 

FOMO – Time to Cash-Out!

After two years of meteoric price appreciation, U.S. home prices seem to have hit their peak. U.S. mortgage rates have more than doubled since the beginning of 2022, and according to CNN, the average interest mortgage payment on a median-priced home is up 73% from one year ago. 

Recently the FED approved a 0.75-point interest rate hike, taking rates to their highest since 2008. These high-interest rates, combined with quantitative tightening, are pushing home prices down, a trend that Economists at Goldman Sachs and Wells Fargo expect to continue into 2023. 

Many non-residents who own a U.S. property are hesitant about financing their U.S. real estate when mortgage interest rates are so high. However, there is more to the picture than meets the eye. With housing prices expected to continue dropping, many savvy investors are taking advantage of cash-out refinance mortgages. 

The truth is, cash-out refinancing can be a good way to improve your financial situation – we think of it as an affordable way to borrow money if you own substantial equity in your home. The money from a cash-out refinancing can even be used to rebuild equity that you’re taking out if you decide to use it on value-adding home renovations.

With the money you take out of your property when you refinance, you can do whatever you want with it. You can stay on top of an unexpected medical or vehicle bill, finish paying back your college loans, or make home repairs.

While prices have dropped by 2.6% since the end of June, according to a CNBC article, they are still 10.7% higher than in September 2021. This is the canary in the coal mine, and foreign investors would be wise to take advantage of their equity while it’s still high. 

Let’s flesh this out with an example. Imagine you purchased a home in Dallas, Texas, in 2016 for $230,000. As of November 2022, that home is valued at $460,000. 

You can take advantage of that massive increase in value before it trends down by leveraging the property and extracting a substantial amount of your equity investment. The best part? You keep your U.S. property investment and its cash flow and use the extracted funds toward a new investment.

FED Chair Jerome Powell signalled that interest rates would likely reach even higher than initial targets set in September. As the value of your investment property continues to decrease, so will the potential equity you can leverage. Consider striking while the iron is hot and lock down your property value.

Don’t miss the opportunity to utilise your equity while it remains high. Let your money make you money with America Mortgages cash-out refinancing. America Mortgages has a 97% approval rate for both U.S. Citizens & Foreign Nationals. That is our sole focus and our expertise. Contact us today to speak to one of our loan officers at [email protected].

For more details, please visit us at www.americamortgages.com

Real Estate Investors Rejoice! AM Concierge is here!

With the continued home shortage in the U.S. of more than 3.8M properties, property developers are pulling back on new projects, and despite rising mortgage rates, U.S. property prices are holding strong. For the remainder of 2022 and going into 2023, The Washington Post stated recently, “As mortgage rates rise, prices should moderate, but low inventory will continue to be a problem.” The biggest benefit to this, bidding wars in hot cities where buyers were paying 10-20-30% over the asking price is likely going away. Now may be the time to buy while people are still figuring out the market. 

The continued feedback we get from clients is finding the perfect property represented by a vetted realtor that understands non-resident investors, with their interests in mind. This is the missing piece of the puzzle. Furthermore, looking for reputable homeowners insurance once the property is in contract is another problem. This is where America Mortgages comes in. We heard you, and our team now has solutions for both! 

If you are looking for a “full-service” solution when investing in U.S. real estate, getting a mortgage is only one step in the process. Recently, America Mortgages launched an option to match your needs with a vetted and trusted realtor. AM Concierge not only gives our clients the best mortgage options available, but they also have a reliable realtor network to choose from regardless of the U.S. state.

Upon being pre-approved for your mortgage, if requested, you will be teamed up with a Certified International Property Specialist to help you with a key step of the transaction – finding the right property! This is not a requirement for a mortgage loan. This is only an “extra tool” to assist if needed. If you already have a realtor you are working with or prefer to find a realtor on your own, please continue to do so. 

We believe that as a non-resident real estate investor if you have more resources available, you can make a more informed decision on which investment property you should buy.

AM Concierge offers;

 1. A mortgage loan tailored to your needs through a firm that are experts in non-resident, foreign national, and U.S. expat mortgage lending.

 2. A trustworthy realtor that will source a property that fits your requirements. A realtor that knows the specific market you’re interested in will show you only properties that meet your requirements, saving you time, effort and money. Often they will find properties you may not know exist. Just as it’s important to find a mortgage company that understands Foreign National and U.S. Expat lending, it is as important for your realtor to have this experience as well. Someone that works well with the mortgage professional and also understands the intricacies and nuances involved when buying from abroad. 

They will negotiate the purchase agreement and represent you through the transaction. Keep in mind, in the U.S.; the buyer does not pay for the realtor’s commission. This is paid for by the seller. It costs you nothing to have someone to represent you. 

The best part about our AM Concierge service is that there is NO cost to you!

At AM Concierge, we have a vetted and approved network of realtors in all 50 states that can assist you when buying a home as a foreign national, non-resident, or U.S. expat. These agents will work in your time zone and in your language to find a property that fits your requirements. Our agents are friendly, compassionate, and understand the process of international home buying. 

 2. Foreign Nationals and Expats Home Insurance & Other Insurance products 

If you have a mortgage in the U.S., you are required to insure the property for its replacement value, known as homeownership insurance. Living outside of the U.S., often finding a reputable insurance agent takes time and effort. It’s a small step; however, if you’re unfamiliar with the process, it can be confusing and frustrating. Again, we understand, and we are here to help. This is why America Mortgage’s home insurance mortgage solution comes from trusted insurance partners. They will assist you in obtaining a quote for homeowners insurance and other insurance needs you may have. If you’re a property owner, our trusted insurance partner will make it easy to get the coverage you need to be prepared for whatever may come your way. Again, this is a free service we provide to help your journey in U.S. real estate investing.

As a company, America Mortgages’ only focus is providing U.S. mortgage financing for foreign nationals and U.S. Expats. Getting pre-approved for a purchase or a refinance/cash-out normally takes 72 hours from application and document submission. Once you have your pre-approval, you are ready to begin the search for your dream international property. 

If you have any questions regarding mortgages, realtors, or homeowners insurance, please speak with one of our loan officers today. 

[email protected]

America Mortgages Launches No Ratio Mortgage Program for International Real Estate Investors

SINGAPORE, October 27, 2022 /EINPresswire.com/ — America Mortgages, the world’s leading international mortgage brokerage, focusing on U.S. mortgage financing for non-resident investors, today announced the addition of a new Mortgage Loan Program that allows real estate investors to qualify using no ratio underwriting. This mortgage program for international investors features both fixed and adjustable rate mortgages (ARM), competitive rates, high LTV/LVR and loan amounts up to $5 million.

America Mortgages’ new No Ratio mortgage program can be used for investment properties in all 50 states. International borrowers can use credit from their home country to qualify.

Robert Chadwick, CEO of America Mortgages states “What makes this program very unique is that the borrower does not need to provide personal income documentation or rental income. Unlike underwriting requirements for conventional or standard non-QM mortgage loans that rely upon the information contained in tax returns, pay statements, rental income or various other ways to document income, America Mortgages’ no-ratio mortgages rely upon a borrower’s credit and overall financial profile. Self-employed borrowers find the relaxed documentation requirements of a no-ratio mortgage ideal, but it could also prove to be convenient for a salaried borrower with additional income that cannot be readily documented.” He goes on to state “This is a perfect loan program for all real estate investors when a conventional mortgage loan is not an option, and as there are no AUM requirements this is a perfect loan for our private banking clients.”

Although rental rates have increased at a much faster pace than mortgage interest rates, often borrowers have a difficult time qualifying using the standard DSCR formula where the loan qualifies on the projected rental income of the property. This is a perfect substitute for when DSCR or conventional income qualifying loans are not an option. America Mortgages’ No-Ratio loan allows a quick, viable and very aggressive loan option.

“We constantly strive to curate the best U.S. mortgage loan options for our global clients.” Stated Nick Worthing, VP of retail lending for America Mortgages. “As the market changes, we need to be fast, nimble and resilient. That is what keeps our company as the leader in U.S. mortgage financing for foreign national and U.S. expat investors”.

Some of the featured benefits of America Mortgages’ no-ratio mortgage include:

· Aggressive loan-to-value ratio (LTV) as high as 80% for both foreign nationals and U.S. Expats
· No tax returns or income verification
· No U.S. credit required
· Foreign passports allowed
· Investment property only
· Loans up to $5,000,000 or higher in some cases
· Loans available in all 50 states
· No restrictions on cash-out financing
· Interest-only terms available
· Approval within 72 hours

For more information on America Mortgages’ No-Ration U.S. Mortgage loan program, contact [email protected]

About America Mortgages and Global Mortgage Group

Founded in 2018, Global Mortgage Group PTE LTD [GMG], and headquartered in Singapore, is a full-service global mortgage financing firm offering mortgages for investment purposes in The United States, Australia, Canada, United Kingdom, Germany, France, Spain, Singapore, Hong Kong, Philippines, Thailand, Japan to name a few. For more information, visit www.gmg.asia or call +65 9773-0273.

Founded in 2019, America Mortgages, Inc. is a wholly-owned subsidiary of Global Mortgage Group PTE LTD [GMG]. America Mortgages headquartered in San Antonio, TX, with representation in 12 different countries, is dedicated to providing U.S. mortgage options for non-resident Foreign Nationals and U.S. Expats. 100% of America Mortgages [AM] clients are living and working outside of the U.S. Both GMG and AM focus on building quality, long-term relationships with its partners such as Private Banks, EAM, Family Offices, Realtors and other mortgage broker located around the world by offering a wide variety of mortgage loan programs focused on specific markets with an exceptional client experience.

For more information, visit www.americamortgages.com or call +1 830-217-6608.

Robert Chadwick
America Mortgages. Inc
+65 8430 1541
[email protected]
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