This fortune teller would look into that crystal ball and let you in on every prediction that occurs to them. Real estate investors would line up just to find out what the best investment property would be like. Not to mention stealing a few hints at how to maximize cash flow from U.S. housing markets. That psychic of the future would warn you if you’re about to make the worst investment property deal. Maybe even motivate you to make the best investment property decision of your new real estate investor career. Unfortunately, that fortune teller doesn’t exist and the questions surrounding U.S. real estate markets will have to remain unanswered. Or do they?
With the help of WalletHub Statistics from 2017, we can have a good idea of how cities in the U.S. real estate markets will perform in 2018. WalletHub’s analysts determined how to rate 300 cities using two main aspects: “real estate market(80/100 points)” and “affordability & economic environment(20/100 points).”
Using 21 different metrics, Wallethub was able to give us this list we will be providing you with. Keep these cities in mind when buying a rental property to stay on top of your game. The last thing you need is to find yourself committed to a bad real estate investment.
Important Metrics to Keep in Mind
Understanding all 21 different metrics can get overwhelming when comparing all 300 cities. To save you the hassle and the headache, we listed some of the most important ones to real estate investors:
- Home Value Forecast
- Median Home-Price Appreciation
- Average Number of Days Until a House Is Sold
- Share of Homes Selling for a Gain
- Price to Rent Ratio
- Foreclosure Rate
- Vacancy Rate
U.S. real estate markets differ greatly from one another. Utilizing the number of different metrics is key to finding the best investment property and avoiding the worst investment property. That is where your biggest advantage comes in: Mashvisor.
Related: What are The Most Important Metrics in Real Estate Investment Property Analysis?
Mashvisor provides you with analytics using those important metrics and more. We use metrics such as cap rate, cash flow, and traditional and Airbnb occupancy rates. Mashvisor may not be a fortune teller that uses a glass ball to make predictions, but we come pretty close. With our predictive analytics, you are bound to find the best investment property.
Where NOT to Invest- Top 10:
Here we include the city, state, total score out of 100, “real estate market rank”, and “affordability & economic environment” rank-
- Newark, NJ | 32.93/100 | 300/300 | 300/300
- Miami Beach, FL | 297 | 39.48 | 234
- Bridgeport, CT | 40.70 | 294 | 278
- Detroit, MI | 41.24 | 290 | 290
- Baltimore, MD | 43.95 | 283 | 258
- Flint, MI | 43.22 | 291 | 222
- Fall River, MA | 43.05 | 277 | 299
- Buffalo, NY | 46.22 | 284| 219
- Toledo, OH | 47.92 | 272 | 185
- Worcester, MA | 149.35 | 264 | 209
There you have it! Where not to invest during the start of your 2018.
Related: How to Use Predictive Analytics for Real Estate Investing
Why Location Matters
Real estate agents have the mantra “Location, location, location!” for a reason. When buying a rental property, location is one factor used when distinguishing between the best investment property on the market versus the worst investment property. There are a number of reasons why this is the case, and why location is an indicator in the real estate business. As a real estate investor, you want to look for rental properties in a decent place. If you would not live there, chances are neither will potential tenants. Find a place that fits your standards, as it can reflect what type of individuals you will be tending to.
Related: What Are the Best Locations for Cash Flow Properties in the US Real Estate Market?
People want areas that have good schools, decent neighborhoods, usually far from a highway. If a city’s environment does not provide at least one of those benefits, chances are they will not attract many tenants. That leaves you, the real estate investor, scavenging for someone to live in the property you invested in. There is a number of U.S. real estate markets that fit the “white picket fence” description. Aim for them, because you are likely to find the best investment property that way.
That is why understanding U.S. real estate markets is so crucial. Be able to identify which cities to avoid when buying a rental property. This will save you the inconvenience of finding an exit strategy when you find yourself making no cash flow, and being stuck with the worst investment property.
Important Prediction for the U.S Real Estate Markets of 2018
When it comes to U.S. real estate markets, there seems to be a grey area when trying to predict what can happen. A number of different predictions were made in 2016 about the 2017 U.S. real estate markets. Some were spot on, others far off. Either way, expert predictions can be utilized to prepare for both the worst and the best.
One main prediction to stress on is that real estate investors such as yourself can expect a good amount of new competition in U.S. real estate markets. More and more individuals are looking into real estate investing, which means more and more players are entering the game. This territory is already competitive. With the addition of more soldiers, you are getting a run for your money being a real estate investor. However, a new real estate investor will not have half the experience you do. Guard your piece of the pie, as you worked hard to bake it to perfection.
Summing it All Up
With Mashvisor by your side, you have the ultimate advantage to claim your land and make sure you are receiving the best investment property. This is the year you need to flex your real estate investor muscles and make sure to claim what is rightfully yours. With the right armor (Mashvisor), you will be ready to go head first into the U.S. housing market and dominate. When the cash flow comes in, the strategies on how to keep it coming will follow. Buying a rental property will be a decision well worth the effort, especially when you find the right location.