No one can deny that investing in real estate is a great way to make money. And one of the best things about the industry is that it offers different types of properties that you can capitalize on. One of these property types is condominiums (condos for short). Renting out a condo is a viable investment choice for property investors living in economically healthy housing markets who are interested in investing in real estate. How come? And where exactly are the best places to buy a condo for investment in the US? Keep reading to find out.
3 Reasons to Consider Investing in a Condo in 2019
1) Buying a Condo Costs Less
The last thing you want as a real estate investor is to invest in a property that you can’t afford to pay for. This will increase the risks of facing foreclosure or short-sale and basically losing your investment property. If you’re a beginner investor and you don’t have a big budget, finding an affordable property is essential. This is why buying a condo real estate investment is a good option for you, as condos generally cost less than single-family homes and townhouses in most housing markets across the country.
2) Owning a Condo Can Be a Passive Investment
While investing in a rental property is definitely hard work, owning a condo real estate investment is easier than owning other types of properties. This is because condos come with a wide range of amenities and services that take away a lot of the responsibilities that property investors have to tackle. If you own a condo, you don’t have to worry about cleaning the pool, mowing the lawn, improving the curb appeal, etc.
As a result, renting out a condo is a great passive income investment strategy! What’s best is that, because a condo comes with more amenities, a real estate investor can charge higher for rent than for another property in the same location. Meaning, investing in a condo can yield higher rental income and total return on investment. That’s, of course, if you’re investing in the best places to buy a condo for investment.
You can start searching for and analyzing condos for sale on Mashvisor. Click here to get started.
3) Condos Attract High Demand
According to the PwC’s Emerging Trends in Real Estate 2019 Report, the “condominium market is getting a lift from baby boomers who are downsizing and moving into the city core.” Millennials (university students, young families, and young professionals) are also creating demand in the condo market. There are two main reasons for this.
First, condos are located in the center of hot real estate markets, while single-family houses are typically found in the suburbs. The second reason is that these tenants want to enjoy the many amenities that condos offer at a reasonable price. This higher demand means higher rents, a positive cash flow, and higher profits for property investors.
The Best Places to Buy a Condo for Investment
These are the main reasons that make buying a condo for investment a smart decision. As you can tell, location is key for the success of a condo real estate investment. So, if you’re wondering where to buy a condo, here’s a list of the 15 best places to buy a condo for investment in terms of cash on cash return according to Mashvisor’s Rental Property Calculator.
Note: All data is based on Mashvisor’s predictive analytics and projections expect for Walk Scores which are provided by walkscore.com.
Fort Stewart, GA
- Median Property Price: $210,000
- Price Per Sq/Ft: $123
- Rental Income: $1,710
- Price-to-Rent Ratio: 10
- Cash on Cash Return: 13%
- Walk Score: 6
Londonderry, VT
- Median Property Price: $129,900
- Price Per Sq/Ft: $141
- Rental Income: $7,120
- Price-to-Rent Ratio: 2
- Cash on Cash Return: 12%
- Walk Score: 4
Waterville Valley, NH
- Median Property Price: $131,833
- Price Per Sq/Ft: $130
- Rental Income: $7,202
- Price-to-Rent Ratio: 2
- Cash on Cash Return: 11%
- Walk Score: 21
Westhampton Beach, NY
- Median Property Price: $986,167
- Price Per Sq/Ft: $1,031
- Rental Income: $19,992
- Price-to-Rent Ratio: 4
- Cash on Cash Return: 10%
- Walk Score: 60
East Massapequa, NY
- Median Property Price: $559,000
- Price Per Sq/Ft: $269
- Rental Income: $3,684
- Price-to-Rent Ratio: 13
- Cash on Cash Return: 10%
- Walk Score: 50
Eagle Creek, IN
- Median Property Price: $212,600
- Price Per Sq/Ft: $90
- Rental Income: $1,940
- Price-to-Rent Ratio: 9
- Cash on Cash Return: 9%
- Walk Score: 51
Windham, NY
- Median Property Price: $546,000
- Price Per Sq/Ft: $404
- Rental Income: $9,260
- Price-to-Rent Ratio: 5
- Cash on Cash Return: 8%
- Walk Score: 44
Brian Head, UT
- Median Property Price: $150,380
- Price Per Sq/Ft: $152
- Rental Income: $3,107
- Price-to-Rent Ratio: 4
- Cash on Cash Return: 8%
- Walk Score: 8
Harlan, IA
- Median Property Price: $177,000
- Price Per Sq/Ft: $152
- Rental Income: $1,150
- Price-to-Rent Ratio: 13
- Cash on Cash Return: 8%
- Walk Score: 52
Tioga, ND
- Median Property Price: $119,500
- Price Per Sq/Ft: $83
- Rental Income: $1,095
- Price-to-Rent Ratio: 9
- Cash on Cash Return: 8%
- Walk Score: 46
West Palm Beach, FL
- Median Property Price: $261,886
- Price Per Sq/Ft: $220
- Rental Income: $1,500
- Price-to-Rent Ratio: 15
- Cash on Cash Return: 8%
- Walk Score: 42
Huntington, WV
- Median Property Price: $270,112
- Price Per Sq/Ft: $165
- Rental Income: $940
- Price-to-Rent Ratio: 24
- Cash on Cash Return: 8%
- Walk Score: 45
The Villages, FL
- Median Property Price: $348,117
- Price Per Sq/Ft: $26,817
- Rental Income: $3,061
- Price-to-Rent Ratio: 9
- Cash on Cash Return: 8%
- Walk Score: 7
Littleton, NC
- Median Property Price: $405,000
- Price Per Sq/Ft: $124
- Rental Income: $1,261
- Price-to-Rent Ratio: 27
- Cash on Cash Return: 7%
- Walk Score: 34
Clarksville, NH
- Median Property Price: $130,000
- Price Per Sq/Ft: $70
- Rental Income: $1,000
- Price-to-Rent Ratio: 11
- Cash on Cash Return: 7%
- Walk Score: 18
Start your 14-day free trial with Mashvisor now to get access to our rental property calculator and other tools to help you find the best condo for investment anywhere in the US housing market.
The Bottom Line
To sum up, owning and renting out a condo is, indeed, a profitable real estate investment opportunity. As data from Mashvisor shows, property investors can find affordable condos that achieve a high return on investment in terms of cash on cash return. Of course, location matters when it comes to investing in a condo. So, consider the above-mentioned best places to buy a condo for investment in the US and use our tools to analyze and compare properties to find the one that best meets your criteria and goals as a real estate investor.
Grab the best available Residential Investment Condos for Sale:
- Investment condos for sale in Lake
- Investment condos for sale in Nevada
- Investment condos for sale in San Diego
- Investment condos for sale in Los Angeles