Best Buy Cities: Where to Invest in Rental Properties in 2018
Top 5 Cities for Investing in Rental Properties
As up and down as the real estate market has been in the past, and despite the recent growth in the market over the last few years, rental properties remain a sound investment choice for many people. With 32% of all Americans living in rental households, according to DMDatabases.com, a rental property can provide investors with a sound and reliable stream of revenue. But, when it comes to investment success, location certainly matters.
If you are thinking about broadening your investment portfolio in 2018 with one or more rental properties, the following five cities are going to offer you the best profit potential in the New Year.
#1: Orlando, Florida
The Amusement Park Capital of the World also happens to be home to the hottest rental market in 2018. Real estate is still relatively affordable, with investors able to rent renovated properties for up to 1% of the purchase price. Plus, with more home seekers choosing to rent in Orlando, rent rates jumped by 8% in 2017 and that’s a trend that is expected to continue into the New Year.
Need more reasons to invest in an Orlando rental? The property taxes are low, job growth averages 4% per year, there’s no state income tax, the weather’s great, and with 10,000 baby boomers hitting retirement every single day, you can bet that a lot of them will be relocating to sunny Florida.
#2: Tampa, Florida
Tampa is a top contender for the very same reasons as Orlando. The city has exceptional job growth, accessible medical services, and a robust economy. Tampa is also in the midst of a residential, commercial, and infrastructure renovation and it is a consistently ranked in the top 20 fastest growing cities in the United States.
Tampa’s real estate is made up largely of high-priced homes, but there are areas filled with more affordable properties where investors can find excellent opportunities waiting for them. Additionally, because Tampa is such a tourist hot-spot, it is also a prime location for investing in properties to be used as short-term rentals.
Find the perfect property in Tampa to invest in by using Homes.com. We have thousands of listings, so regardless of your investment budget, we’ll have something that’s right for you.
#3: Pittsburgh, Pennsylvania
The rust belt is going to be a shining star for real estate investors in 2018, and Pittsburgh is going to be one of the hottest places to buy. Once known as “The Steel City,” tough and gritty Pittsburgh is now a modern metropolis where healthcare, education, and technology make up the driving forces of its economy.
Pittsburgh has undergone an incredible revitalization over the last two decades. Thanks to its diverse culinary scene, championship sports teams, affordable real estate, and vibrant arts communities, the city’s housing market sits in the nation’s top 10 for redevelopment and growth. Plus, Pittsburgh’s average gross yield for rent was nearly 13% in the first quarter of 2017.
Take advantage of the investment opportunities in Pittsburgh, PA. There are thousands of properties available and most make for excellent investment candidates.
#4: Cleveland, Ohio
Another darling of the rust belt, Cleveland, Ohio has been enjoying an explosion in real estate activity over the last few years. In fact, Cleveland has one of the strongest housing markets in the entire country and the fact that it is the 12th largest economic region in the U.S. only adds to its allure for investors.
People are moving to Cleveland like no other major Midwest city. In the summer of 2017, more than 12,500 people moved to downtown Cleveland, more than at any time in the city’s history. Also of important note is that the city has seen a 139% increase in its college-educated millennial population.
Cleveland’s home sales are up 12% year-over-year and believe it or not, there are still a lot of properties to be had for under $100,000, with many of them in good neighborhoods. Cleveland’s rise is real and smart investors want to get in before prices skyrocket.
Want to see what Cleveland has to offer? Just search for Cleveland properties at Homes.com and we’re confident you’ll find the ideal investment opportunity in this surging city.
#5: Huntsville, Alabama
The fourth-largest city in Alabama, Huntsville is shaping up to be a great place to invest in real estate in 2018. Huntsville’s economy is strong, with technology, space, and defense industries serving as its driving forces. The city also enjoys an affordable market and one in which nearly 46% of residents are renters. Also adding to Huntsville’s attractiveness is the fact that property taxes are low and rent rates are high, the combination of which can result in higher returns for investors.
Huntsville is also home to three of the state’s top universities – Alabama A&M University, Oakwood University, and the University of Alabama in Huntsville, and it continues to be one of the fastest growing cities in Alabama. In fact, since 2010, the city has welcomed more than 10,000 new residents, more than any other city in the state.
Use the property search tool at Homes.com to find out what real estate opportunities await you in Huntsville, Alabama. Homes are affordable here and the population is growing. That’s an investor’s ultimate wish list, so start your search today.