For some context, the average annual return on the Dow Jones over the last 10 years has been 4. In addition, you have more influence over your investment property than you would the stock market. There are so many factors at play. With an investment property, though, small changes — such as a new door or some minor improvements to the kitchen — can improve the likelihood of wooing good tenants at higher monthly rents.
With investment properties, not only are you riding the wave, but you own the wave. One of the biggest pitfalls that home buyers of any kind make is searching for a property before securing financing. But by the time you get preapproved for a mortgage, the house is already under contract with another buyer. It would be heartbreaking to be looking at houses at one price range, only to find out that you qualify for less.
Getting preapproved allows you to make an educated decision about the investment property you plan to buy. The exception to this would be if you purchase a multiple-unit property and plan to live in one of the units and rent out the others.
The agency loans available to you will either be a fixed-rate mortgage or an adjustable rate mortgage ARM. Both of these options have specific requirements when it comes to the down payment and credit score.
Other than the down payment, the requirements for a rental property are somewhat similar to that of a mortgage for a primary residence. Your mortgage company will also want you to have six months of mortgage payments in reserve in order to give yourself some buffer room in the event that you go through an unexpected financial challenge.
While you will get a larger cash flow on that investment, it ties up all of your cash in a single place. While your immediate cash flow is lower, these returns will grow in the long-term, especially as rents increase and the mortgages get paid off.
The low unemployment rate of 3. Bureau of Labor Statistics. Rising rents. The average condo or townhome costs nearly , dollars, and their prices increased 11 percent.
Currently, Las Vegas is a sizzling seller's real estate market in the United States. Orlando, Florida Orlando, FL is a tourism and entertainment favorite, because of this, it remains a strong real estate investment destination.
It is the center of the Orlando metropolitan area, with a population of about 2. Third-largest metropolitan area in Florida. Orlando's real estate has been one of the best long-term investments throughout the last decade. It has appreciated by Strong economic and job growth. Orlando is a major industrial and hi-tech center employing thousands of people. The low unemployment rate of 2. Bureau of labor statistics.
Currently, Orlando is a sizzling hot seller's real estate market in the United States. Spokane, Washington Spokane stands at the 5th position. The second second-largest city in Washington by population. It is a beautiful city to live in. Spokane has a system of over 87 parks and includes six neighborhood aquatic centers. It has several trendy, walkable, and revitalized neighborhoods with good walkability and local shops. Spokane's diversified economy includes mining, forestry, agribusiness, high-tech, and biotech sectors.
Affordable real estate. Rising Rents in Spokane. Owners of both single-family homes and rental property are seeing good returns. Currently, Spokane is a red-hot seller's real estate market in the United States. Tampa, Florida Tampa, FL is also on the list of best places to invest in real estate in Affordable Real Estate. Currently, Tampa is a red-hot seller's real estate market in the United States. Investors can buy properties at lower rates right now and rent them out to new residents of the city to improve their cash flows.
Tampa has the headquarters of four Fortune companies which makes it a moderately attractive city for work and economic growth. The influx of people into Tampa is especially occasioned by the fact that it one of the fastest-growing job hubs in the country.
The healthcare, education, and transportation facilities in Tampa are also impeccable. Austin, Texas Austin, TX is also on our list of best places to invest in real estate.
Growing population. It is the 11th most populated city in the U. Currently, Austin is a red-hot seller's real estate market in the United States.
Austin has a record of being one of the best long-term real estate investments in the U. The Austin real estate appreciation rate in the last quarter was around 1. Chicago, Illinois Chicago is also on our list of the best places to invest in real estate. Fully renovated single-family homes with great ROI. Solid blue-collar areas with high rents. High private sector employment. Often rated as having the most balanced economy in the United States.
Ranked seventh in the entire world in the Global Cities Index. Home to 12 Fortune Global companies and 17 Financial Times companies. Rising rent prices. Columbus, Ohio Columbus is also on the list of the best places to invest in real estate.
Very affordable real estate. Large rental market. Ohio is landlord-friendly, so that's good for owning a rental property. The sheer variety of colleges in the area means that investors can rent to the large population of students in Columbus without worrying about their property values rising and falling based on the popularity of a flagship school. Lakeland, Florida Lakeland, FL also enters the list of the best places to invest in real estate in It is the largest city on Interstate 4 between Orlando and Tampa.
Lakeland is a transportation hub. In the past few decades, tourism, medicine, insurance, transportation, and music have grown in importance. More than 22, people moved to the Lakeland-Winter Haven metropolitan area from July 1, , to July 1, , according to the U. Census Bureau. The 3. Single-family detached homes are the single most common housing type in Lakeland.
Studio apartments are the smallest and most affordable for rental rates. Lakeland's appreciation rates in the latest quarter were at 1. Currently, Lakeland is a red-hot seller's real estate market in the United States. Ocala, Florida Ocala, FL finds itself on the list of the best places to invest in real estate in In the last decade of the twentieth century, the greater Ocala area had one of the highest growth rates in the country for a city of its size. Ocala is also a great city to live in for families.
The median age is about When you buy real estate in Ocala you are investing in an area that is situated between three huge cosmopolitan centers, namely Tampa, Orlando, and Jacksonville.
The average annual real estate appreciation rate over the past decade has been around 2. Currently, Ocala is a red-hot seller's real estate market in the United States.
Birmingham, Alabama Birmingham, AL also ranks in our list of the best places to invest in rental real estate in Birmingham is the seat of Jefferson County, Alabama's most populous and fifth-largest county. Being home to several colleges and universities, Birmingham has a large pool of student renters.
Strong and diversified economy. Birmingham is a leading banking center and a powerhouse of construction and engineering companies. Currently, Birmingham is a red-hot seller's real estate market in the United States. Durham, North Carolina Durham, NC is also one of the best places to invest in rental real estate in The U.
Census Bureau estimated the city's population to be , as of July 1, , making it the 4th-most populous city in North Carolina, Also, the 79th-most populous city in the United States. Durham is also a national leader in health-related activities, which are focused on the Duke University Hospital and many private companies.
Durham has a track record of being one of the best long-term real estate investments. Average annual home appreciation rate of 4. Currently, Durham is a seller's real estate market in the United States.
Charlotte, North Carolina Charlotte is also one of the best places to invest in rental real estate in Charlotte's home values have gone up 5. Charlotte's appreciation rates in the latest quarter were at 0. It is one of the best places to live in North Carolina. Ranked one of the best places to live in the United States for , according to U. The Queen City is 34th in the best places to retire. It offers residents an urban-suburban mix feel and most residents own their homes. The city has a mixture of owners and renters, with The city is the cultural, economic, and transportation center of the Charlotte metropolitan area, whose population ranks 23rd in the U.
Charlotte has become a major U. Between and , Charlotte saw a 2. Currently, Charlotte is a seller's real estate market in the United States. Colorado Springs, Colorado Colorado Springs is also on the list of the best places to invest in rental real estate in Home values have gone up by 7. Currently, it is a red-hot seller's real estate market in the United States. Single-family detached homes are the single most common housing type in Colorado Springs.
Colorado Springs's appreciation rates in the latest quarter were at 1. Colorado Springs had a 5. It was ranked as the fifth-best city in the United States to find a job in , according to a survey released by Wallethub.
In , U. Currently, Colorado Springs is a sizzling hot seller's real estate market in the United States. Montgomery is the second-largest city in the state of Alabama and the th largest metro area in the country. Interestingly, more than , residents live within 50 miles of Montgomery County. Montgomery and Birmingham are two cities in Alabama that investors should keep their eye on. As mentioned throughout this article, there are three key factors to look at when considering a real estate market: job growth, population growth and affordability.
Between November and November , the number of jobs in Montgomery has decreased by 5. This is a good sign for real estate investors because job growth leads to population growth, and people need housing.
Although this is a lot slower than the national average, a stable and growing job market is a good sign of a good real estate market. Its population growth in the previous years has been exceptionally fast and the job market is strong despite losses due to COVID Learn more about all the investment opportunities the Orlando real estate market has to offer in The demand for single family homes has been on the rise in the Sunshine State for quite some time.
As you can imagine, this is causing rental rates to rise and are expected to keep going up in On top of great cash flow, values are on an upswing in these areas with no sign of slowing down.
Add warm weather and exceptional health care, and you can see why many of the 10, baby boomers retiring every day are moving to Florida. These industries are an enormous source of income for the city of Orlando. However, in we should start to see jobs being added back as the COVID vaccination becomes more readily available.
The good news is that people are still moving to Orlando and the housing market continues to thrive with great levels of appreciation. As mentioned, most of the best places to invest in real estate have three factors in common: job growth, population growth and affordability. Orlando is no exception…. Additionally, a projected growth rate of 3. This means the demand for housing is likely to increase. Tampa is another great real estate market in Florida for In the past few years, real estate values in Tampa have increased significantly and this growth is expected to continue in —a good sign for investors looking for appreciation.
Located on the west coast of Florida, Tampa Bay is a densely populated metropolitan area second only to Miami , with a population of more than 3. Major cities in this area include St. There are several major attractions in the area including, Busch Gardens and the Tampa Zoo. Sports fans also flock to Tampa as there are a number of professional and collegiate sports teams in the area.
Why is Tampa on our list of best places to buy real estate in ? Tampa also places a strong focus on job growth in areas such as financial services and healthcare. The real property tax rate in Florida is 0. Without the Coronavirus pandemic, the Greater Tampa Bay area creates more than 34, new jobs a year.
Tampa and surrounding areas continue to be some of the best real estate markets in the country. We believe Tampa is one of the best places to buy rental property in because it has all three. In a normal year, the number of new jobs created in the Tampa area has outpaced the national average. Tampa has a population of 3. An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices.
Back to Learning Center. Last Updated: June 3, See all results. Share on facebook. Share on twitter. Share on pinterest. Share on linkedin. Share on email. Share on print. Kathy Fettke. Article Quick Links. About the Albuquerque Housing Market. Housing Market Statistics. Housing Market Quick Facts. In , the median monthly rent of an average home in the U. This shows us that Albuquerque is experiencing consistent growth year after year.
One good thing to note is that the unemployment rate has been steadily falling in as people regain their jobs after the COVID pandemic. In April , the unemployment rate was 8. About the Atlanta Housing Market.
This is slightly higher than the national average of 5. However, in , the job growth rate was higher than the national average. About the Baltimore Housing Market. Population : 2. This shows us that Baltimore is experiencing slower, but steady population growth year after year. However, in a normal year, the job market in Baltimore is creating jobs rapidly.
About the Birmingham Housing Market. Population : 1. Birmingham is affordable. The average home prices in Birmingham are still well below national levels, which means investing here is more affordable than many other U. Birmingham offers a cash flow opportunity. Average homes in Birmingham can rent for more than 0. Birmingham is stable. Birmingham is not experiencing wild appreciation or depreciation swings, which makes it more stable than many other U.
This means that investing here is likely less-risky than many other markets too. Birmingham is growing steadily. Over the last 6 years, Birmingham has experienced both population and job growth at a slow, but steady yearly rate.
All good signs that this market will continue to be stable for years to come. About the Charlotte Housing Market. This shows us that Charlotte is experiencing lots of growth year after year. About the Chicago Housing Market. Metro Population : 9.
Job Growth Chicago is the 3rd largest city in the United States and among the top 5 most economically powerful cities in the world. About the Cincinnati Housing Market.
Metro Population : 2. This is just below the national price-to-rent ratio of 0. This is especially attractive for investors looking for cash flow rental property. Job Growth The Cincinnati metro area has the 4th largest number of new facilities in the U. Population Growth The Cincinnati metro population has grown 3. About the Cleveland Housing Market. Fastest growing healthcare economy in U. Home to three major sport teams that bring billions of dollars of revenue to the area every year.
In a typical year, job growth slowly, but steadily rises at around 0. About the Dallas Housing Market. Metro Population : 7. Dallas is slightly less affordable than the average home nationwide. Dallas offers investors an opportunity to generate passive monthly income. This is slightly less than the national average of 0. Dallas home values are rising faster than other real estate markets.
Dallas is the ninth most populous city in the U. Job Growth In a typical year, Dallas has significant job growth. About the Dayton Housing Market. This is just above the national price-to-rent ratio of 0. As such, cash flow investors should consider taking a closer look at buying real estate in Dayton.
Job Growth The Dayton metro area is growing more slowly than other big cities nearby, however the job market is stable and expanding. Charlotte has had huge population growth and job expansion in the financial and tech industries. And its 25 colleges and universities fuel a young workforce. Its low property taxes make it an easier place to buy than in rival tech hubs. The second most powerful banking center in the US after New York City, its financial prowess prompts tech investment.
Jobs in Charlotte are increasing, with a 2. Its job growth over the next 10 years is predicted to be Bungalow is the best way to invest and manage your real estate portfolio. Learn more about Bungalow. Move-in ready homes and a built-in community so you can feel at home, together—wherever you are. Find a home. Jul 23rd, View more articles. Austin, Texas 3. Las Vegas, Nevada 4. Dallas, Texas 5.
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