If you are planning to invest in rental properties, you need to make sure you choose the best location.When it comes to choosing the right location, you need to check:
- Population growth
- Employment growth
The good news is there are plenty of cities in the United States where you can find great rental property location. These cities have affordable rental properties and can generate a high cash flow. The following are the top 5 in our list.
It is the third largest metropolitan region in the Southeast. It has experienced a rapid growth over the past decades. Its massive growth has attracted people from different parts of America. The median home price in Atlanta is $174,000. The median rent every month is $1, 335 and the median household income is $60, 200. Atlanta is on top of the list of the cities that generated high returns on single family rental, according to the ATTOM Data Solutions. A 3-bedroom single family home in downtown Atlanta appreciated by 8.5%, which is 2% higher than the national average (6.25%). What makes Atlanta a sound investment choice?
An employment growth of 2.85%, which is higher than the national average employment rate of 2.35%.
A population growth of 1.72%.
Affordable rental properties. A standard 3-bedroom single family home only cost $152,000, which is 18.72% lower than the national 3-bedroom home pricing. Get more information here about flipping houses and how you can start earning with them.
Kansas City, Missouri
It is a city rich in culture, art, and sports. Currently, there are 2.3 million people living in Kansas City, which increased by almost 11% since 2000. The employment rate is high as various business sectors continue to boom such as Information Technology, Healthcare, Auto Industry, and manufacturing, to name a few. Rental demand in Kansas City will continue to increase throughout the years as more and more American are looking for great job opportunities in less expensive cities. The current median home price in Kansas City is $163,300 and the median household income is around $57,000. Why invest in the Kansas City market?
Renters are heading towards Kansas City because of employment growth in various sectors.
There are tons of affordable properties. The average list price is $187,000. In fact, you can buy properties from pre-foreclosure and banks at around $100,000 to $120,000.
Employment rate increases by 1.4% and will continue to increase over the years.
The average monthly rental fee is $793. Real estate guru Doug Clark became a household name in 2011 know more about his seminars and how he help a lot of people on making money.
The windy city provides great investment opportunities. The prices of real estate property have gone way above the city limits. As a result, people move out of the city. This caused a significant increase in the prices of some neighborhood. The good news is properties in Chicago are undervalued. A fully renovated rental property would cost around $80,000 to $150,000. If you are looking for a property that would generate high cash flow, then you should head to Chicago. The current median home price in Chicago is $252,000 and the average rental fee every month is $1550. Why choose Chicago?
It is number four in the list of the most economical city in the world.
More than half of the total population rents.
There are homes sold at a mid-level market. The average price for a family home is $252,000.
Many people in Chicago live in a home for a year or more.
The housing prices in Chicago have not yet increased since 2006 because of the city’s tough foreclosure laws.
There is an increasing demand for single family homes in the city. For under $120,000, you can acquire a fully renovated property and you can rent it up 1% of the buying price. Surprisingly, many people in Orlando prefer to rent than to buy a home. Another great reason to invest in property rental in Orlando is the low cost of insurance and property tax. In fact, there is no state income tax. These are just some of the reasons why more and more people are moving to Florida, not to mention, the warm weather.
Orlando is located in the Sun Belt region in Florida. Many people love to move to Orlando because of the beautiful beaches, great weather, and famous attractions and amusement parks. Its growing economy provides employment to many. It offers high quality living without breaking the bank. The average sale price is $115,000 and the average monthly rental fee is $1, 050. Why choose Orlando?
It ranked 16 in the list of fastest growing metro in America.
It is the most visited tourist destination in America. According to Forbes report, 60 million people visited Orlando in 2015.
Since the year 2000, Orlando experienced 41% population growth. Today, there are more than 2 million people residing in Metro Orlando.
The employment rate is expected to grow by 4.2%.
Over the last 12 months, the demand for rental property grew by 3.4%.
It is still possible to buy a fully renovated property for less than $120,000.
Houston has experienced a massive population growth since the year 2000. Today, it has 5.5 million residents. It provides jobs and housing and the price of homes continues to rise despite the drop in gas price. The city offers both cash flow and equity growth. The demand for rental property in the city of Houston continues to increase as more Americans are looking for an employment opportunity in less expensive areas. The average home price is $392,674 and the average monthly rental fee is $1,600. Why invest in rental properties in Houston?
The cost of living in Houston is way below compared to other cities in America.
The employment rate continues to increase.
There are over 1,475 pre-foreclosure properties in Houston. Investors can take advantage of those properties and can even get great discounts. It is also possible to get larger rents because the average monthly fee is $1,600.
Investing in the real estate is all about choosing the best property in the most favorable location. When it comes to rental real estate, you should consider the cities mentioned above.