Top Cities Those Investing in Real Estate Rentals Should Target
You’ve got cash in hand—or at least a plan for acquiring funding—and you know exactly what you’re looking for in that next gem of a rental. The question now is, where exactly is your next diamond in the rough?
When it comes to investing in real estate rentals, it’s critical that you complete a market analysis. Then, you can be sure to purchase rentals in locations that possess these three qualities: affordability, job growth, and population growth. And luckily, the United States has quite a few of these at the moment.
Here’s a rundown on where to buy investment property in 2019.
Investing in Real Estate Rentals in Orlando, FL
Single-family houses have been increasingly in demand in Florida for several years now. However, the good news is that you can still nab a fully-renovated property in a decent Florida neighborhood for less than $160,000. On top of this, even with these low prices, many people are deciding to rent homes instead of buying them, which means that rental rates are skyrocketing. This couldn’t be a more perfect situation for today’s real estate investor.
When you take into consideration that Florida has no income tax and also has low insurance and property taxes, it’s clear why Florida is such an attractive state for investing in real estate rentals.
But enough about Florida in general. Let’s take a look at why Orlando, in particular, takes the cake if you’re wondering where to buy investment property this year.
For starters, Orlando sits in the “sun belt” area of Florida—you know, the area known for having popular attractions, entertainment, amusement parks, beaches, and a warm climate.
Orlando has also witnessed one of the best levels of employment growth across the United States, with over 50,000 jobs generated in one year. The growth rate should remain at around 3% during the next decade.
Investing in Real Estate Rentals in Cincinnati, OH
Cincinnati is another U.S. city to pay attention to if you’re wondering where to buy investment property. Both this city, which is growing quickly, and Dayton are experiencing an explosion of commercial, housing, and retail development. This may explain why, last year, the city was among the top ones attracting millennials who are revolutionizing real estate by staying in urban settings instead of moving to the burbs. Cincinnati’s metro area has the fourth-biggest number of brand-new facilities nationwide and has also witnessed a population growth of 14% since the early 1990s.
What makes Cincinnati such an attractive place for real estate investors is that you can take advantage of the city’s growth while still paying relatively affordable prices for properties. You can still purchase a completely renovated property here for between $80,000 and $150,000.
Investing in Real Estate Rentals in Indianapolis, IN
With more than two million people calling Indianapolis home, this city is the Midwest’s second-largest city and the nation’s 14th-biggest one. The city has spent billions on revitalization efforts, particularly in the downtown area, and it also features low living costs. All of this has made Indianapolis an increasingly alluring place to live and do business.
Other reasons why Indianapolis is so attractive? The city’s job market is strong and diverse, featuring employment opportunities in areas like pharmaceuticals and research. Indianapolis also offers excellent universities and schools; and there are plenty of sports attractions to keep residents entertained.
As a landlord, you’ll also love the area’s basement-level housing costs. For instance, you can easily buy a turn-key property for between $60,000 and $120,000.
Investing in Real Estate Rentals in Chicago
Not far from Indianapolis is another Midwest city that has become a landlord’s paradise: The Windy City.
Chicago, where Fortune 500 companies and tall skyscrapers abound, remains an excellent place for securing wonderful real estate investment opportunities. That’s because the prices of real estate have increased within the city limits, thus forcing residents to move into the suburban areas surrounding the city instead. As a result, neighborhoods around Chicago have experienced drastic increases in rent prices within the past couple of years.
At the same time, though, you can easily buy a completely renovated investment home for anywhere between $80,000 and $196,000. The reason for this is that Illinois’s foreclosure laws are tough, which has kept housing prices from not superseding their levels back in 2006.
Based on the above factors, the Windy City should be high on your list if you’re searching for properties with heavy cash flow along with robust appreciation potential.
Investing in Real Estate Rentals in Albuquerque, NM
Albuquerque, which is situated in the famous Rio Grande Valley, is New Mexico’s most populous municipality and ranks number 32 in the United States for population. But it’s not just the population that makes this city stand out: it’s the fact that the city is in the middle of the state’s popular “Technology Corridor”—a combination of government institutions and high-technology private companies. The city also houses Intel, a national laboratory, an air force base, and at least four institutions of higher education. And with Netflix planning to move its production hub to New Mexico, you can expect more movies and jobs to be produced in the area.
With these successes, it may come as no surprise that the growth of the population in Albuquerque has been steady from year to year. This population growth is expected to continue in 2019 and beyond.
Start Investing in Real Estate Rentals with Confidence Today!
Purchasing income-generating real estate properties can no doubt be an exciting opportunity. At the same time, it can be a daunting process if you don’t know what steps to take. A single mistake may cause you to lose out on extremely profitable deals or lose money on a bad deal.
That’s why you shouldn’t go into investing in real estate rentals without expert help on your side. Work with me to invest in rentals at the center of big cities like Cincinnati and Houston or to find out more about where to buy investment property and how to go about it successfully in the months and years ahead.