Is a multi-family home a good investment for you?

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Multifamily property has the power to generate cash flow and build wealth. Yet it also has the power to drain you of your free time and become the biggest money pit of your life.

 

If you’re looking to buy a multifamily property and avoid common headaches, you have your research cut out for you.

 

Related: First-Time Homebuyers Guide

What Is a Multifamily Property?

Multifamily property consists of multiple units in a single building. This includes duplexes, triplexes, fourplexes, condominium buildings, student housing, age-restricted communities, low-income housing, and townhomes.

 

The units in a multifamily property must have separate entrances, kitchens, bathrooms, and utility meters.

 

Multifamily property investing is more popular than ever. In fact, 2021 saw more than $890 billion in loans originated for commercial real estate, a 45% increase over 2020. Multifamily properties accounted for $376 billion of that.

 

There’s a reason that individual investors gravitate toward two- to four-unit properties, other than ease of management. Residential loans of 30 years with a fixed rate are available for properties with one to four dwelling units. FHA, VA, and USDA loans are available for those properties if they are owner-occupied.

 

For five or more units, a commercial loan is required. Commercial loans usually come with a higher down payment requirement, higher interest rate, and shorter-term, meaning significantly higher mortgage payments.

Why Get a Multifamily Property?

Buying a multifamily home can jump-start your real estate investment portfolio. Here’s how.

Income From Flipping

Multifamily homes can be improved and then resold for a profit: ”flipped.” Buying a multifamily property, remodeling, and then reselling can be even more profitable than flipping single-family homes because as you remodel, you can increase rents.

 

Once you increase rents, the property becomes more valuable, both in terms of monthly cash flow and overall worth.

The ‘BRRRR’ Method

BRRRR stands for buy, rehab, rent, refinance, repeat. An investor buys a property, renovates it, and rents out the newly refurbished units for more money. After that, they can refinance the property to take out extra cash to buy a new property to renovate.

 

This method works well with multifamily properties because the rehabbing of multiple units can be done while other units that are not being renovated can still bring in some income.

Cash Flow

Multifamily homes were designed for cash flow. Space and amenities are optimized to bring in money for the investor. On the other hand, single-family homes are designed for comfort. The added space of a single-family home may not bring as high of a return as a multifamily property.

Quick Portfolio Expansion

Buying multifamily properties allows investors to acquire multiple units with one transaction, so they may have a favorite in the single-family vs. multifamily comparison. Additionally, investing in multifamily properties can allow an investor to quickly generate income, which could be enough to acquire more properties.

Reduced Risk

A multifamily property lessens risk exposure. When you have single-family homes, vacancies have a bigger effect on your monthly cash flow. With one or more multifamily properties, the risk is spread across a number of properties. In other words, there are units still rented that can help cover the costs of the units that are vacant.

Analyzing the Investment Potential of a Multifamily Property

Investors can use a number of methods to determine if it makes sense to buy a multifamily property or not. Here are some of the most common calculations you can use to make that determination for yourself.

Cash Flow

In real estate, cash flow is money that’s generated by the property and money spent on the property. Positive cash flow means income exceeds expenses. You could also call it profit.

 

Investors have differing amounts that they consider acceptable. Some investors bank on the appreciation of the property instead of the amount of cash flow.

The 1% Rule

The 1% rule states that the gross rents should be 1% or more of the purchase price. The 1% rule is hard to apply in high-income areas where the purchase price of a property is high relative to the rents it generates.

Gross Rent Multiplier

The gross rent multiplier (GRM) compares the gross annual rents to the fair market value of a property. It doesn’t take expenses into consideration and is meant to be a simple calculation to determine if a property is worth exploring further.

The lower the GRM, the more gross rent there is compared with the purchase price.

Cash on Cash Return

The cash on cash return is the annual amount earned compared with the amount of cash invested. It’s expressed as a formula: annual net cash flow divided by cash investment. This is helpful for investors who want to know how much cash is brought in by their cash investment each year.

Capitalization Rate

The capitalization rate, or cap rate, is the amount of net operating income divided by the purchase price. This number indicates how long it will take to get back all your money in an investment.

 

Recommended: What Is Cap Rate and How Do You Calculate It?

Internal Rate of Return

The IRR measures the rate of return over an amount of time. It takes into account both cash flow and expected appreciation.

 

Recommended: Mortgage Payment Calculator

How to Buy a Multifamily Property

You may be able to use 75% of documented rental income to help finance your loan.

And again, multifamily homes with four or fewer units can be financed more traditionally, while five or more units require a commercial mortgage.

 

Getting pre-approved for a mortgage for your multifamily investment property is one of the best things you can do to get started. After a mortgage officer has examined your finances and greenlighted an amount, you can go shopping for your multifamily investment.

Find a Multifamily Home

To narrow your search for a multifamily property, you’ll want to decide what it is you’re looking for. Keep a few of these factors in mind:

  • Location: Do you have an area that you have expertise in? Are you going to manage the property yourself? These are some questions you’ll want to ask yourself to determine if you can buy a multifamily property near or far.
  • Price range: After you’ve looked at where you want to potentially invest, you’ll get a good sense of what properties will cost by looking at real estate listings. Keep in mind that you can count 75% of documented rents toward the purchase price for many loan types, so the price you’ll be looking at will be much different than if you were looking for a single-family home.
  • Type of property: Are you looking for a fourplex or an apartment complex? Duplex or 55+ community? There are a lot of choices to make between different property types and whether or not they’ll bring you a profit.
  • Profit potential: Are you looking to invest for appreciation or cash flow? Many properties with a lower price tag in the Midwest may be better for cash flow, while properties on the West Coast may appreciate more. Take a look at both and decide on your investment strategy.
  • Condition: Do you have the resources and team in place to take on a multifamily property that needs a lot of work? Or would you rather have something turnkey? You’ll want to be sure you know what resources you can commit to the project before you get in over your head.

Choose a Loan

The type of property may determine what type of loan you’re able to get. If this is your first rental, you may want to consider living in one of the units so you can qualify for owner-occupied financing, which usually comes with lower rates and down payment requirements.

 

Choose a lender that can answer your questions about mortgages.

Make an Offer and Close

Working with an agent, you’ll submit a competitive offer for the property you’ve chosen. Some buyers use cash to make the most competitive offer, while others need financing.

Renovate and Get Ready for Your Tenants

No matter what class of property you buy, the rental units will almost always require some work. Whether it’s a simple clean or a major renovation, these things are both tax-deductible and will improve the value, not to mention rentability, of your property.

Create a Management Plan

To make sure you’re running a business, and it’s not running you, you need to have a solid plan in place for how the rentals will be managed. How are repairs going to be taken care of? What’s your process when a rental turns over? How are you going to keep up with laws and ordinances?

 

Having a plan helps. Even so, you’ll learn as you go and will need to adjust this plan.

FAQ

Is buying a multifamily property a good investment?

Finding a multifamily property that is a good investment will depend on the investor’s analysis of the property. This can include the price, condition, gross rent multiplier, capitalization rate, and a number of other factors that will make renting the units successfully.

What are the different kinds of multifamily properties?

  • Duplexes, triplexes, fourplexes
  • Townhouses
  • Apartment buildings
  • Condominiums
  • Bungalow courts
  • Mixed-use buildings
  • Student housing
  • Age-restricted housing units
  • Low-income housing units

What is the best way to finance a multifamily home?

Some would argue that an FHA loan with 3.5% down is one of the best ways to finance a home with up to four units. The owner must live in one of the units to qualify for this type of financing.

The Takeaway

How to buy a multifamily property? Do your research and choose a property that you’ll have the ability to finance and manage. Investing in rental properties is not easy, but it can generate cash flow and create family wealth.

 

Learn More:

This article originally appeared on SoFi.com and was syndicated by MediaFeed.org.

 

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SoFi loans are originated by SoFi Bank, N.A., NMLS #696891  Opens A New Window.(Member FDIC), and by SoFi Lending Corp. NMLS #1121636  Opens A New Window., a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law (License # 6054612) and by other states. For additional product-specific legal and licensing information, see SoFi.com/legal.
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Terms, conditions, and state restrictions apply. Not all products are available in all states. See SoFi.com/eligibility for more information.
Financial Tips & Strategies: The tips provided on this website are of a general nature and do not take into account your specific objectives, financial situation, and needs. You should always consider their appropriateness given your own circumstances.
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States where foreclosure rates are soaring

 

Editor’s Note: Updated for May 2022

 

The number of U.S. properties with foreclosure filings in April was 30,674, according to ATTOM Data Solutions. This is up close to 160% from a year ago and makes April the 12th consecutive month showing year-over-year U.S. foreclosure activity increases. The Biden administration’s final extension of the pandemic-related moratorium on foreclosures ended July 31, 2021. The extension of the evictions moratorium for foreclosed borrowers ended September 30, 2021.

 

It is also worth noting that foreclosure filings decreased by close to 8% from March to April. The experts at ATTOM say this may be due to record levels of homeowner equity and the current hot housing market, allowing distressed homeowners the chance to sell their homes before going into final foreclosure. However, they say it may take a few months to see if this is what is happening.

 

According to ATTOM, year-over-year foreclosure increases will likely continue for the rest of 2022; however, they still expect foreclosures to stay below historic levels at least through the end of the year. Read on for the foreclosure rates in April 2022 – plus the five counties with the highest rates within those states.

 

Related: The safest cities in the US

 

DepositPhotos.com

 

As just noted, foreclosures are up from last month, and up even more significantly compared to last year. Read on for April foreclosure rates for all 50 states — plus the District of Columbia — beginning with the state that had the lowest rate of foreclosure filings per housing unit.

 

 

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Ranking in population between Vermont and Alaska, the country’s 49th and 48th least populated states, Washington, D.C. had 10 foreclosures in April. With a total of 350,364 housing units, Washington, D.C.’s foreclosure rate was one in every 35,036 households, putting it in between the states of Kansas (#48) and North Dakota (#47).

 

 

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South Dakota once again nabbed the 50th spot; it had six homes go into foreclosure in April. Having 389,921 total housing units, the fifth least populated state had a foreclosure rate of one in every 64,987 households. Only three counties saw foreclosures in April. The counties with the most foreclosures per housing unit were (from highest to lowest): Lawrence, Minnehaha, and Lincoln.

 

 

RiverNorthPhotography

 

In 49th place for population, Vermont claimed the 49th spot for its foreclosure rate. Of Vermont’s 334,318 housing units, seven homes went into foreclosure for a rate of one in every 47,760 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Orange, Franklin, Windham, Washington, and Rutland.

 

 

” DonLand”

 

Kansas took the 48th spot. With 1,275,689 homes and a total of 35 housing units going into foreclosure, the 35th most-populated state’s foreclosure rate was one in every 36,448 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Geary, Leavenworth, Seward, Shawnee, and Miami.

 

 

Michael Pham

 

North Dakota’s foreclosure rate was one in every 33,695 homes. That puts the fourth least populated state – with a total of 370,642 housing units, of which 11 were in foreclosure — in 47th place. The counties with the most foreclosures per housing unit were (from highest to lowest): Morton, Stark, Ward, Cass, and Williams.

 

 

 

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The 44th most populated state ranked 46th once again for foreclosure rate. With 18 foreclosures out of 514,803 housing units, its foreclosure rate was one in every 28,600 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Chouteau, Broadwater, Rosebud, Yellowstone, and Lewis And Clark.

 

 

YinYang

 

The 39th most populated state, West Virginia, ranked 45th. It has 855,635 homes, of which 56 went into foreclosure. That means the foreclosure rate was one in every 15,279 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Tyler, Lewis, Fayette, Boone, and Cabell.

 

 

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The 27th most populated state ranked 44th for highest foreclosure rate. Of Oregon’s 1,813,747 homes, 130 went into foreclosure, making for a foreclosure rate of one in every 13,952 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Morrow, Polk, Klamath, Washington, and Multnomah.

 

 

HaizhanZheng

 

With a total 1,994,323 housing units, Kentucky saw 148 homes go into foreclosure. That put the foreclosure rate for the 26th most populated state at one in every 13,475 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Martin, Grant, Washington, Lincoln, and Webster.

 

 

Thomas Kelley

 

Ranked 13th for most populated state, Washington came in 42nd place for highest foreclosure rate. It has 320,2241 housing units, of which 251 went into foreclosure, making the state’s foreclosure rate one in every 12,758 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Douglas, Chelan, Okanogan, Skamania, and Grays Harbor.

 

 

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Ranked 33rd for most populated state, Arkansas took the 41st spot for highest foreclosure rate. It has 1,365,265 housing units, of which 122 went into foreclosure, making the state’s latest foreclosure rate one in every 11,191 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Woodruff, Lincoln, Ashley, Grant, and Mississippi.

 

Recommended: Tips on Buying a Foreclosed Home

 

Rdlamkin

 

Ranked the least populated in the country, Wyoming claimed the 40th spot for highest foreclosure rate. With 271,887 housing units, of which 26 went into foreclosure, the state’s foreclosure rate was one in every 10,457 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Crook, Carbon, Campbell, Sublette, and Big Horn.

 

 

AnujSahaiPhotography

 

In Tennessee, the 16th most populated state, there were 291 foreclosures out of 3,031,605 housing units. That put the foreclosure rate at one in every 10,418 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Wayne, Hardeman, Bledsoe, Humphreys, and White.

 

 

NathanMerrill

 

The eighth least populated state took the 38th spot for highest foreclosure rate. A total of 51 homes went into foreclosure out of 483,474 total housing units, making the foreclosure rate for the Ocean State one in every 9,480 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Providence, Bristol, Newport, Washington, and Kent.

 

 

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The 40th most populated state, Hawaii came in 37th for highest foreclosure rate. Of 561,066 homes, 61 went into foreclosure, making for a foreclosure rate of one in every 9,198 households. Only three counties in the state had foreclosures. They were (from highest to lowest): Hawaii, Maui, and Honolulu.

 

 

Art Wager

 

The 41st most populated state, New Hampshire ranked 36th for highest foreclosure rate. Of 638,795 homes, 70 went into foreclosure, making for a foreclosure rate of one in every 9,126 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Cheshire, Sullivan, Grafton, Rockingham, and Strafford.

 

 

DenisTangneyJr

 

Utah placed 35th for highest foreclosure rate. Of the Beehive State’s 1,151,414 housing units, 135 homes went into foreclosure, making the 30th most-populated state’s foreclosure rate one in every 8,529 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Sevier, Tooele, Morgan, Box Elder, and Emery.

 

 

AndreyKrav

 

Alaska saw 38 foreclosures, making the foreclosure rate one in every 8,356 homes. That caused the third least populated state, with a total of 317,524 housing units, to take the 34th spot. Only four counties saw foreclosures in April (from highest to lowest): Anchorage, Matanuska-Susitna, Fairbanks North Star, and Kenai Peninsula.

 

 

Chilkoot

 

The 38th most populated state, Idaho had 91 homes go into foreclosure. With 751,859 total housing units, the state’s foreclosure rate was one in every 8,262 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lewis, Lincoln, Oneida, Benewah, and Shoshone.

 

 

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Ranked 18th for most populated state, Maryland took 32nd place for highest foreclosure rate. With a total of 2,530,844 housing units, of which 322 housing units went into foreclosure, the state’s foreclosure rate was one in every 7,860 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Prince George’s County, Charles, Garrett, Baltimore City, and Calvert.

 

 

James_Lane

 

With 392 foreclosures out of 2,727,726 total housing units, Wisconsin, the 20th most populated state, had a foreclosure rate of one in every 6,958 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Marquette, Kenosha, Douglas, Dodge, and Langlade.

 

Recommended: What Is a Short Sale?

 

FierceAbin

 

Ranked 37th for population, Nebraska claimed the 30th spot with a foreclosure rate of one in every 6,920 homes. With a total 844,278 housing units, the state had 122 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Knox, Madison, Jefferson, Cedar, and Lancaster.

 

 

marekuliasz

 

The 15th most populated state ranked 29th for highest foreclosure rate. Of Massachusetts’ 2,998,537 housing units, 446 went into foreclosure, making for a foreclosure rate of one in every 6,723 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Plymouth, Hampden, Franklin, Berkshire, and Worcester.

 

 

 

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With 1,268 out of a total 8,488,066 housing units going into foreclosure, the fourth most populated state took the 28th spot. New York’s foreclosure rate was one in every 6,694 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Genesee, Suffolk, Washington, Montgomery, and Tioga.

 

 

Eloi_Omella

 

The 36th most populated state took the 27th spot for highest foreclosure rate. Of its 940,859 homes, 141 went into foreclosure, making for a foreclosure rate of one in every 6,673 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Chaves, Cibola, Eddy, Valencia, and Torrance.

 

 

Davel5957

 

The 19th most populated state, Missouri came in 26th for highest rate of foreclosures. Of its 2,786,621 homes, 443 went into foreclosure, making for a foreclosure rate of one in every 6,290 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Jefferson, New Madrid, Webster, Butler, and Gasconade.

 

eyecrave

 

The 12th most populated state ranked 25th for highest foreclosure rate, with 581 homes going into foreclosure. Having 3,618,247 total housing units, the state saw a foreclosure rate of one in every 6,228 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Nottoway, Portsmouth City, Essex, Warren, and Greene.

 

 

DenisTangneyJr

 

In Mississippi, the 34th most populated state, there were 213 foreclosures out of 1,319,945 housing units. That put the foreclosure rate at one in every 6,197 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Sharkey, Stone, Claiborne, Benton, and Adams.

 

 

stevegeer

 

Ranked 25th for population, Louisiana took the 23rd spot, with 338 homes out of a total of 2,073,200 housing units going into foreclosure. That means Louisiana had a foreclosure rate of one in every 6,134 households. The counties with the most foreclosures per housing unit were (from highest to lowest): West Baton Rouge, Iberville, Beauregard, Tangipahoa, and Richland.

 

 

DenisTangneyJr

 

Ranked as the ninth least populated state, Maine placed 22nd for highest foreclosure rate. With a total of 739,072 housing units, the Pine Tree State saw 126 foreclosures for a foreclosure rate of one in every 5,866 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Waldo, Aroostook, Somerset, Penobscot, and Androscoggin.

 

 

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Ranked 24th for most populated, Alabama came in 21st for highest foreclosure rate. Of its 2,288,330 homes, 391 went into foreclosure, making for a foreclosure rate of one in every 5,853 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Dale, Barbour, Montgomery, Covington, and Conecuh.

 

Recommended: 4 Signs You May Be Ready to Buy

 

 

James Deitsch

 

Pennsylvania has the 20th highest foreclosure rate. The fifth most populated state had a total of 1,120 housing units out of 5,742,828 homes go into foreclosure, making the state’s foreclosure rate one in every 5,128 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Potter, Delaware, Philadelphia, Bucks, and Pike.

 

 

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The Lone Star State saw 2,297 foreclosures. With a foreclosure rate of one in every 5,045 households, this put the second most populous state with 11,589,324 housing units into the 19th spot – the same ranking it held in March. The counties with the most foreclosures per housing unit were (from highest to lowest): Dickens, Ector, Collingsworth, Shackelford, and Nacogdoches.

 

 

DenisTangneyJr

 

In Arizona, the 14th most populated state, there were 614 foreclosures out of 3,082,000 housing units. That put the foreclosure rate at one in every 5,020 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Graham, Yavapai, Cochise, Pinal, and Greenlee.

 

 

wanderluster

 

The ninth most populated state took 12th place for highest foreclosure rate. Out of 4,708,710 homes, 967 went into foreclosure. That put the Tar Heel State’s foreclosure rate at one in every 4,869 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Gates, Washington, Polk, Cumberland, and Hoke.

 

 

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Ranking 10th for population, Michigan took the 16th spot with a foreclosure rate of one in every 4,771 homes. With a total of 4,570,173 housing units, the state had 958 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Saint Joseph, Genesee, Macomb, Schoolcraft, and Shiawassee.

 

 

haveseen

 

Oklahoma claimed the ninth spot. With housing units totaling 1,746,807, the 28th most populated state saw 380 homes go into foreclosure at a rate of one in every 4,597 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Washita, Canadian, Craig, Love, and Garfield.

 

 

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The eighth most populated state, Georgia ranked 14th for highest foreclosure rate. Of its 4,410,956 homes, 1,004 were foreclosed on. That put the state’s foreclosure rate at one in every 4,393 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Candler, Crawford, Polk, Baker, and Peach.

 

 

SeanPavonePhoto

 

Ranked 22nd for most populated state, Minnesota took the 13th spot for highest foreclosure rate. It has 2,485,558 housing units, of which 568 went into foreclosure, making the state’s foreclosure rate one in every 4,376 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Grant, Faribault, Mower, Clay, and Isanti.

 

 

JoeChristensen

 

The most populated state ranked 12th for highest foreclosure rate. Of its 14,392,140 housing units, 3,465 went into foreclosure, making California’s foreclosure rate one in every 4,154 households. The counties with the most foreclosures per housing unit were (from highest to lowest): Lake, Siskiyou, Kern, Trinity, and Madera.

 

 

mlauffen

 

With 377 of its 1,530,197 homes going into foreclosure, Connecticut had the 11th highest foreclosure rate of one in every 4,059 households. In the 29th most populated state, the counties that had the most foreclosures per housing unit were (from highest to lowest): Windham, Middlesex, New Haven, Hartford, and Litchfield.

 

Recommended: Your 2022 Guide to All Things Home

 

traveler1116

 

Iowa had the tenth highest foreclosure rate. With 353 housing units out of 1,412,789 homes going into foreclosure, the 31st most populated state’s foreclosure rate was one in every 4,002 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Fremont, Cass, Winnebago, Wapello, and Tama.

 

 

JoeChristensen

 

The third most populated state in the country has a total of 9,865,350 housing units, of which 2,906 went into foreclosure. The state’s ninth highest foreclosure rate is one in every 3,395 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Hamilton, Calhoun, Taylor, Gilchrist, and Union.

 

 

Elisa.rolle

 

The sixth least populated state in the country, Delaware ranked fourth for highest foreclosure rate. With one in every 3,138 homes going into foreclosure and a total 448,735 housing units, Delaware saw a total of 143 foreclosure filings. With only three counties in the state, the most foreclosures per housing unit were in (from highest to lowest): Kent, New Castle, and Sussex.

 

 

mdgmorris

 

With one in every 3,085 homes going into foreclosure, South Carolina moved out of the top three to take the seventh spot. Ranked 23rd for population, South Carolina has 2,344,963 housing units and saw 760 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Barnwell, Lexington, Dorchester, Marion, and Darlington.

 

 

SeanPavonePhoto

 

The 21st most populated state ranked 6th for highest foreclosure rate. Of Colorado’s 2,491,404 housing units, 812 went into foreclosure, making for a foreclosure rate of one in every 3,068 homes. The counties with the most foreclosures per housing unit were (from highest to lowest): Pueblo, Delta, Mesa, Weld, and Morgan.

 

 

Jacob Boomsma / istockphoto

 

Ranking 32nd in population, Nevada took the fifth spot for foreclosure rate. With one in every 3,043 homes going into foreclosure and a total of 1,281,018 housing units, the state had 421 foreclosure filings. The counties with the most foreclosures per housing unit were (from highest to lowest):Clark, Nye, Washoe, Elko, and Lyon.

 

 

AlizadaStudios

 

The 17th largest state by population, Indiana took the fourth spot with a foreclosure rate of one in every 2,660 homes. Of its 2,923,175 homes, 1,099 homes were foreclosed on in April. The counties with the most foreclosures per housing unit were (from highest to lowest): Noble, Grant, Clinton, Lake, and Elkhart.

 

 

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Ohio claimed the third spot, with a foreclosure rate of one in every 2,585 homes. With a total of 5,242,524 housing units, the seventh most populated state had a total of 2,028 filings. The counties with the most foreclosures per housing unit were (from highest to lowest): Cuyahoga, Huron, Muskingum, Logan, and Greene.

 

 

dypics

 

With a foreclosure rate of one in every 2,292 homes, New Jersey held on to second place. The 11th most populated state has 3,761,229 housing units, of which 1,641 went into foreclosure. The counties with the most foreclosures per housing unit were (from highest to lowest): Cumberland, Salem, Warren, Camden, and Gloucester.

 

 

DepositPhotos.com

 

Illinois took the number one spot again in April. Of its 5,426,429 homes, 2,421 went into foreclosure, making the sixth most populated state’s foreclosure rate one in every 2,241. The counties with the most foreclosures per housing unit were (from highest to lowest): Will, Madison, Lee, Tazewell, and Mchenry.

 

 

ibsky

 

Of all 50 states, California had the most foreclosure filings (3,465); South Dakota had the least (6). As for the states with the highest foreclosure rates, Illinois, New Jersey, and Ohio took the top three spots, respectively.

 

The Great Lakes region had the largest presence among the 10 states that ranked the highest for foreclosure rates. These states were (from highest to lowest): Illinois, Ohio, and Indiana.

 

The Plains region and the Southeast region tied for the largest presence among the 10 states that ranked the lowest for foreclosure rates. The states in the Plains region were (from highest to lowest): North Dakota, Kansas, and South Dakota. The states in the Southeast region were (from highest to lowest): Arkansas, Kentucky, and West Virginia.

 

Learn More:

This article originally appeared on SoFi.comand was syndicated by MediaFeed.org.

 

SoFi Loan Products

SoFi loans are originated by SoFi Lending Corp. or an affiliate (dba SoFi), a lender licensed by the Department of Financial Protection and Innovation under the California Financing Law, license # 6054612; NMLS # 1121636. For additional product-specific legal and licensing information, see SoFi.com/legal.


SoFi Home Loans
Terms, conditions, and state restrictions apply. SoFi Home Loans are not available in all states. See SoFi.com/eligibility for more information.


External Websites: The information and analysis provided through hyperlinks to third party websites, while believed to be accurate, cannot be guaranteed by SoFi. Links are provided for informational purposes and should not be viewed as an endorsement.

 

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Featured Image Credit: Volodymyr Kyrylyuk / istockphoto.

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