Homeowners are faced with two options when choosing to move up the property ladder: sell the old home or rent it out. According to a new report from Zillow, homeowners might want to think twice before selling if they live in these 10 cities
“When deciding if they should sell their home or rent it out, most mom-and-pop landlords are primarily concerned with whether or not they can cover their mortgage payment each month – they simply can’t absorb monthly losses like professional investors,” said Zillow Chief Economist Stan Humphries.
“However, the greatest returns are actually in markets like San Jose and San Francisco where there are short-term monthly losses, but the long-term earned equity makes them the best markets to invest in,” Humphries added.
Nationally, the Zillow Rent Index has increased 2.5% since June 2013 and 9.1% since June 2011.
And on a local level, the Zillow Rent Index has gone up as much as two to three times that amount over the past year in rental hotspots such as metro Chicago (6.3%) and San Francisco (11%).
However, the list does vary depending on time, with a different top ten for short-term profit and long-term profit.
Click the next page for the top 10 markets for each: