Blomquist: No, but the fact that wages are increasing faster than rents in two-thirds of the markets we analyzed should help strengthen demand for rentals and give landlords a foundation on which to raise rents.

GlobeSt.com: In general, what are the advantages of investing in a single-family rental property as opposed to buying and flipping a property?

Blomquist: While flipping a property can yield a big payday, once that property is flipped an investor loses his or her ability to make money off the property. A rental property can continue to generate returns for the investor for as long as he or she owns it—in the form of both monthly cash flow as well as home-value appreciation. Additionally, a rental-property investment allows for a more passive investing approach that does not require as much hands-on involvement on the part of the investor as does a flip.

GlobeSt.com: What else should our readers take away from your report?

Blomquist: The nascent strength of wage growth we see in this report a good sign for the single-family-rental market going forward because it provides not only a foundation for rising rental rates and therefore rising rental returns for investors, but also, if we see that wage growth continue, it will eventually translate into more demand from first time homebuyers—providing rental investors with the icing on the cake of higher home values and an easier exit strategy should they decide to sell their rental property at some point.

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IRVINE, CA—The nascent strength of wage growth seen in ATTOM Data Solutions' recent report on the single-family-rental market is a good sign for this market going forward, the firm's SVP Daren Blomquist tells GlobeSt.com. As we recently reported, ATTOM Data Solutions says that the strong fundamentals of the SFR market warrant investments in the sector. We spoke with Blomquist about single-family-rental investment and the advantages it has over flipping.

GlobeSt.com: What incentive is there to invest in single-family rentals in high-priced coastal markets and hot spots like Denver, parts of Dallas, Austin and Nashville?

Blomquist: The incentive to buy in higher-priced markets is that those markets tend to be proven economic powerhouses that are more likely to see long-term solid demand for rentals as well as stronger home-price appreciation. These are less risky markets for investors, but that lower risk comes with a lower rate of return on rentals.

GlobeSt.com: Are increasing rental rates creating an even higher demand for these properties from the tenant side?

Blomquist: No, but the fact that wages are increasing faster than rents in two-thirds of the markets we analyzed should help strengthen demand for rentals and give landlords a foundation on which to raise rents.

GlobeSt.com: In general, what are the advantages of investing in a single-family rental property as opposed to buying and flipping a property?

Blomquist: While flipping a property can yield a big payday, once that property is flipped an investor loses his or her ability to make money off the property. A rental property can continue to generate returns for the investor for as long as he or she owns it—in the form of both monthly cash flow as well as home-value appreciation. Additionally, a rental-property investment allows for a more passive investing approach that does not require as much hands-on involvement on the part of the investor as does a flip.

GlobeSt.com: What else should our readers take away from your report?

Blomquist: The nascent strength of wage growth we see in this report a good sign for the single-family-rental market going forward because it provides not only a foundation for rising rental rates and therefore rising rental returns for investors, but also, if we see that wage growth continue, it will eventually translate into more demand from first time homebuyers—providing rental investors with the icing on the cake of higher home values and an easier exit strategy should they decide to sell their rental property at some point.