When one wishes to invest in real estate rental property, there are three aspects which decide which places one should zero in on. These are – affordability, population growth, and job growth. If you find a geographical market that has all of the above three factors, then you know that you have found one of the best places to invest in real estate rental properties. There are many cities across the United States where you can buy a rental property at great prices and watch your equity grow. They are listed below:
- Orlando, FL
With single family homes’ demand increasing, it is still possible to buy refurbished properties for less than $120,000 in good Florida neighborhoods. Owners can, moreover, rent for amounts as much as 1% of the purchase and price and more. Orlando is popular because of its location (“sun-belt” region), its great climate and its recreational attractions, entertainment, parks, and beaches. The “cheap and cheerful” city offers a high standard of living at an affordable price. The mean rent per month one could make is almost $1,050. Since tourism is growing at an unprecedented rate, one could even convert their rental home into an Airbnb. - Tampa, FL
Coming a close second to Orlando is the fellow Floridian city of Tampa, which is one of the fastest growing metropolitan areas in the country. One of the top reasons to invest in real estate in Tampa is the billions of dollars being invested in infrastructure and commercial and residential real estate. The strong local economy is another compelling reason. Tampa has choices for both high-end homes as well as affordable homes (as less as $90,000) in good neighborhoods. The median rent per month one can make is almost $1,075. - Jacksonville, FL
The third best is also a Floridian city, Jacksonville, which is home to 4 Fortune 500 companies – the only city in the state. The great healthcare system, a less-than-national-average cost of living, and a wonderful climate make Jacksonville one of the best bets to invest in real estate rental properties. What’s more, a typical $100,000 home in the city can be rented out for 20.31% more than the national average. - Pittsburgh, PA
According to the Pittsburgh Gazette, the city ranked as one of the top 12 places to invest in. Pittsburgh is also one of the top 10 best housing markets in the country for growth and redevelopment. What’s more, single-family-homes’ rents rose by 12.6% on an average last year, with the median rent being around $1,200, making the city one of the best places to buy rental homes. - Montgomery and Huntsville, AL
Huntsville is one of the most renowned Southeastern US cities and has been touted as “one of the nation’s most affordable cities” by the Money Magazine and “one of the top communities leading the economic recovery” by USA Today. Montgomery is a college and university city and one of the nominees for “Best Historic City” as well. Both cities enjoy high rents and lower taxes, which indirectly raise the ROI. The median rents for Huntsville and Montgomery are $900 per month. Steady job markets and increasing numbers of students make both cities a real estate investment haven. - Houston, TX
From the primary industry being railroad construction to now oil and NASA, Houston has come a long way. Today, the city offers numerous opportunities for outdoor activities and entertainment, housing and jobs. The rental real estate market is a landlord-friendly, stable, affordable market that offers both equity growth and cash flow. With the average rent per month being a whopping $1,600 (and maybe even more in certain areas), Houston is one of the best US cities to invest in real estate. - Cleveland, OH
One of the strongest real estate markets in the country, Cleveland offers investors future growth and high cash flows. The city is also poised for great economic growth, with loads of millennials making a move to Cleveland. Home sales have increased by 12% y-oy and occupancy rates are a whopping 98%, making Cleveland one of the best cities to invest in real estate rental properties. Investors can still buy great properties in good neighborhoods for $70,000-$90,000 and still make median rents of almost $800-950 per month. - Indianapolis, IN
Indianapolis is currently the Midwest’s 2nd largest city and is today not only one of the country’s most livable cities, according to Forbes, but it also ranks among the cities with the best downtowns. Annual living and housing costs are both below the national average, and coupled with a vibrant culture make Indianapolis one of the best cities to be a landlord in. Investors can purchase turnkey (refurbished to look like new) properties for as less as $60,000–120,000. - Atlanta, Georgia
Nestled on the low slopes of the Appalachian Mountains, Atlanta has seen rapid growth in the last few decades. Investors who want to invest in real estate rental properties can buy a home for an average price of $174,000 and enjoy average rents of $1300-1,400 per month.
