9 Best Cities to Buy Real Estate
With interest rates at historic lows, now is the time more than ever to start investing in real estate. However, before starting your career as a real estate mogul, finding out the most profitable places to buy real estate is key. Looking at a few factors can help determine which areas are the best places to invest. Doing some research into whether the area has a high rental occupancy, looking at how high the rent is compared to the mortgage repayment is, and finding a location with a low tenant default rate are all very important factors in finding an important real estate investment location. These are 9 of the best cities that meet some or all of these criteria.
- Boise, Idaho
Boise is on this list for several reasons. It has a strong population and job growth compared to the national average. It has rising home prices throughout the city and it has extremely low 30 year mortgage rates. It may be known for its potatoes, but maybe it should be known for Sell my home being a real estate investor’s dream.
- San Antonio, Texas
San Antonio makes the list because of the large population boom happening throughout the city. Many people are immigrating due to the above average job growth in the city compared to the US average. Home prices have grown more than 31% in the past 5 years. It also has a strong rental market of 39% of the housing units in the city. It’s very landlord friendly and it’s easy to get hard money loans in San Antonio.
- Dallas, Texas
Dallas has many of the same benefits that San Antonio has. It has a fast-growing population which is expected to double in 15 years. It has strong employment numbers compared to the rest of the country, and 52% of Dallas households are rentals with the actual properties themselves being under market value.
- Houston, Texas
The third Texas town on our list has many of the same strengths of the others. Its job numbers are great compared to the national average, with it coming in at #1 in the US in job creation. It’s the 4th largest metropolitan area in the country, and has a 3 year appreciation forecast of 10.5%.
- Chicago, Illinois
The windy city is a top tier real estate target for investment. Not only is it the 3rd largest city in the country, but it also has an over 50% rental rate. It’s home to 12 Fortune 500 companies and has a large and diverse economy.
- Denver, Colorado
The mile high city makes this list for several reasons. It has a low unemployment rate of 2.3% and it has high population growth. Average rent has increased by 3% over the past year. It also has a diverse economy with a large tourist industry and a strong holiday rental market.
- Orlando, Florida
Orlando is a great place to buy real estate because it is very strong in the tourism industry. If you want to focus on vacation rentals, few cities compare to Orlando.That’s not all though, it has a fast growing population and a 60% rental to ownership ratio, alongside the profitability of apartments for rent in Miami, seemingly getting more lucrative as time passes. It’s the 3rd largest metro area in Florida and has been one of the best long term investments of the past 10 years.
- Birmingham, Alabama
Birmingham is on this list because it is the largest city in Alabama, it has a large college population and a strong and diverse economy. This leads to a high percentage of the population who rent in the city. Additionally houses in Birmingham are very affordable coming in with a median home price of $65,000.
- Seattle, Washington
On the opposite end of the spectrum of housing affordability is Seattle with a whopping median home price of $760,00. Still it has some very strong fundamentals which show that it is a solid investment including a 54% rent rate. It has the 4th highest growth percentage among large cities and is seeing continual immigration from high-income Californian families.
While there are too many good investment opportunities spread out throughout the country to list, these 9 cities are some of the best bets you can get in the business. Buying real estate in any one of these cities will put you on the right track towards becoming a successful entrepreneur. Good luck.
