Buying rental property to add to your investment portfolio can be a fantastic way to become a seasoned real investor. If you make smart decisions and put the work in, a rental property can be lucrative and rewarding. As a first-time investor, the idea of renting a property may seem overwhelming, but there are a few ways you can prevent disaster and give you a solid foundation and an incredible residual income.
Real estate in certain cities can be highly competitive, and there is challenging real estate in every area, but you can prevent buying something that costs money by exercising some care. Research is one of your best tools to avoid bad investments. Hiring a team of professionals to help will be another. A professional and experienced realtor can address your concerns, wants and needs and help you select the property that is most suitable for you. It’s also a good idea to search for property managers in the areas that interest you.
Some criteria to consider before showing interest in a property are a thorough neighborhood review, checking out local schools, determining the crime rate, property tax cost, economy, amenities, rental market, and future development and take into account the likelihood of natural disasters. Taking these factors into account can help you determine what type of property to invest in, what your ideal tenant will look like, and what problems may arise. If you want to manage the property yourself, you are bound by geographic location as you have to be nearby in an emergency. Otherwise, you can hire a property manager to take over this responsibility for you.
Choosing a house in a big city comes with a high price. One of the best kept secrets when buying a rental property is to do so in a lesser known area. There is a need for rental property in all areas and you will likely get a much better price on a home resulting in lower rental prices and still making a profit. Here are some of the best places to buy a rental home in the US for a high return.
Ordinarily, California seems inaccessible to many real estate investors unless they have lots of cash to pay high home prices. In busy metropolitan areas in particular, many people are more likely to look for their own home than for investment property. California is growing, and some areas you may not know much about are some of the best places to invest. The average home price in the Sacramento-Arcade-Arden-Roseville area is just over $ 320,000. It’s about three hours northeast of San Francisco. With a population of more than 2 million, the region is poised for population growth and significant employment growth. That alone will bring many renters to the area looking for their next home. Housing costs will continue to rise and now is the time to get your foot in the door. With the 2028 LA Olympics, it’s the perfect time to get hold of a rental property before the market gets scorching hot.
Missouri might not be high on your list of the best places to invest in real estate, but with the bullish growth forecasts, it could be a good time to get into the market. With the average home price in Springfield around $ 150,000, it may be possible for many people to invest in real estate, even those with the lowest budgets. Home value is likely to correct itself and skyrocket in the years to come. The economy continues to thrive, which will bring more people to the region. Especially when people move to an area, they need rental properties before they buy their homes. There are fewer than 200,000 residents calling Springfield home, and it’s a wonderful place to call home.
North Georgia is packed with natural beauty, comfort, and tranquility that many people want to experience. It’s an excellent place to retreat, raise a family, or an outdoor oasis for those who love to explore. Blairsville properties range from $ 180,000 to $ 300,000 and have large courtyards, incredible views, and more. The small population is hospitable and there are some great schools in the area to raise children. There are plenty of cottages and larger homes that can range from $ 600,000 to over $ 2.5 million. Not only is there a lot to see and do in Blairsville, there is almost no rush hour traffic, no hectic pace and life is more relaxed. In a small town like Blairsville, there is always room for more rental properties, so real estate investors can find modest properties at moderate prices.
There’s more to Utah than cheap home prices. With all of the natural beauty you could want, it’s an ideal place to live or own a home for rent. The average home price in Ogden is around $ 250,000. The city is north of Salt Lake City, one of the world’s most popular places for outdoor sports. Property prices have risen in recent years. So the sooner you can invest, the better. Tourists come from all over the world to visit this part of Utah so tourism jobs are plentiful. The local economy also continues to grow.
Another popular community for real estate investors is Provo. Located across Salt Lake City to the south, Provo is about two hours from Ogden and 45 minutes from the big city. Provo is poised for similar growth as Ogden, with the average home price hovering around $ 265,000. The growth should be massive. With the forecast of massive population growth in the coming years, it is the perfect storm for real estate investors to enter the market now.
Texas has weathered the recent housing shortage almost unscathed, and home prices continue to be fairly affordable for many people. The economy continues to thrive, which will only make apartments in the area more desirable and the market more competitive. The average home price in the Fort Worth suburb of Arlington is around $ 230,000. Fort Worth is sister city to Dallas, which is only about 45 minutes away. With fewer than a million residents, the city is smaller than other major Texas cities, but there is always something to see and do.
While Raleigh has seen significant growth in recent years, it has leveled off somewhat, making it a perfect opportunity for real estate investors. Currently, properties are being sold at an undervalued price, with the average home price being around $ 275,000. Raleigh is the capital of North Carolina, but not as populated as other capitals in the country. With a growing economy and forecasts for another uptrend, Raleigh is a great place to look for an investment property.
Ocean City, Maryland is not your typical residential town; it is a huge tourist area along the east coast every summer. This charming little town offers miles of Atlantic beaches, salty air and many tourist attractions. There are only about 7,000 residents who call Ocean City home year-round, but the city welcomes over 8 million tourists each year. Ocean City is an excellent opportunity as a real estate investor to purchase a property for long term rent or short term rental. There are many condos on the water that are among the most popular real estate options. You can find property in Ocean City for anywhere from $ 130,000 to over $ 1 million in luxury condominiums and real estate. There are many jobs in tourism, but all year round with the mild winter weather. Ocean City is a dream destination for many people, residents and visitors alike. Lots of people choose to retire to the area, and those who love the ocean, water sports, and the outdoors can be the perfect place to call home. As a real estate investor, there is something for all budgets in Ocean City so it will be easy to find a fabulous residence ready for a tenant.
Real estate investments in one of these fantastic cities should be considered when building your portfolio. Some of the areas popular with tourists give investors some flexibility to have long-term rental options or short-term options like Airbnb. It’s a great time to be a real estate investor.