Have you been thinking about investing in a rental property and just were not sure where to begin? I am here to help you!
2016 Recap of all rentals listed on the MLS (Multiple Listing Service)
Many homes are rented without ever going on the MLS, but this data provides a good overview of what you can estimate to get for rent on subject properties. Rentals are hard to find and leases tend to sell quickly.
| Market | Number of leases sold | Type of rental* | Average cost per square foot | Average days on market |
| Alamo | 2 | Detached home | $2.73 | 18 |
| 2 | Condo/TH | $2.63 | 10 | |
| Danville | 14 | Detached home | $2.43 | 17 |
| 21 | Condo/TH | $2.00 | 17 | |
| Pleasant Hill | 10 | Detached home | $2.29 | 29 |
| 11 | Condo/TH | $1.88 | 23 | |
| Walnut Creek | 47 | Detached home | $2.23 | 17 |
| 127 | Condo/TH | $2.33 | 21 | |
| San Ramon | 56 | Detached home | $1.68 | 27 |
| 37 | Condo/TH | $2.18 | 18 | |
| Livermore | 43 | Detached home | $1.97 | 22 |
| 17 | Condo/TH | $2.09 | 19 |
*Detached homes are for homes up to 2000 square feet as that makes the most sense for an investment property due to purchase prices in these markets. It also helps to eliminate executive leases from the averages. Executive leases are large homes that rent for $5000+ per month.
The Alamo prices seem the highest, however there were only a total of 4 rentals in 2016 for the criteria outlined. That also explains why the average price for San Ramon and Livermore are lower as there were more leases sold in those two markets.
Given home prices, the best return on your investment could be in Pleasant Hill or Livermore. Definitely worth consideration.
Walnut Creek is a great rental market due to the proximity to BART, shopping and many young professionals who cannot afford to live in SF.
If you are interested in exploring your options, discussing return on investment, cap rates and appreciation ~ give me a call!
Teresa Hooper 925-262-3820
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