Real estate is a great way to earn lucrative returns, and one of the easiest ways to venture into real estate is by buying a condo unit. Investing in condominium units offers many advantages to investors. Demand for this investment property type is expected to increase in the coming years, and its low maintenance requirements make them the ideal option for beginners.
Table of Contents
- 5 Best Places to Find Condos for Long Term Rental Investment
- 5 Best Places to Find Condos for Short Term Rental Investment
- Benefits of Investing in Condo Real Estate
- 3 Easy Ways to Find Nearby Condos
- Important Things to Remember When Buying a Condo to Rent Out
Are you asking yourself, “How can I find condos near me?” If so, you need to know the effective and simple ways to find condos for sale and whether they will make a good investment. If you plan to buy a condo to rent out, you should determine whether this will make a sound investment strategy.
Condo developments are on the rise these days, especially in large and highly populated cities where available land is scarce for traditional houses. Many people have embraced the idea of condo living, especially in the hustle and bustle of big and fast-growing cities. Condominium buildings in these areas will likely grow in value in just a few years.
However, it’s worth noting that not all locations are ideal for condo investing. In some areas, the demand for condo living is not as high. This makes it a crucial factor to consider before you buy a condo unit as an investment.
5 Best Places to Find Condos for Long Term Rental Investment
If you’re planning to buy a condo unit to invest in long term rentals, the best places for this investment strategy are those near amenities your target tenants need. For instance, if your target renters are young professionals, a condo unit near a business district in your area is optimal.
But no matter who your target market is, be sure to find a condo for sale in a place with easy access to public transportation and wide roads for those who prefer to drive. Make sure to choose a location that’s generally safe and has a low crime rate, and easy access to amenities like supermarkets, schools, and recreational facilities.
To help you get started with your search, we list the top five places to find condos for long term rental investing. The markets on this list have a median property price of no more than $1 million, at least 100 long term rental listings, and a rental income of $2,000 or higher. We only considered markets with a cash on cash return of 2% or more and a price to rent ratio of at least 20.
Here are the five best places for long term rental condos based on Mashvisor’s real estate data as of April 2023:
1. Covington LA
- Median Property Price: $541,677
- Average Price per Square Foot: $222
- Days on Market: 66
- Number of Long Term Rental Listings: 132
- Monthly Long Term Rental Income: $2,236
- Long Term Rental Cash on Cash Return: 4.13%
- Long Term Rental Cap Rate: 4.20%
- Price to Rent Ratio: 20
- Walk Score: 79
Covington offers promising investment opportunities in long term rentals due to its strong economy, high quality of life, excellent schools, and ample recreational opportunities. The city’s prime location within the highly sought-after Northshore region of Greater New Orleans provides a steady influx of residents.
2. Waianae HI
- Median Property Price: $632,200
- Average Price per Square Foot: $496
- Days on Market: 97
- Number of Long Term Rental Listings: 103
- Monthly Long Term Rental Income: $2,423
- Long Term Rental Cash on Cash Return: 3.68%
- Long Term Rental Cap Rate: 3.72%
- Price to Rent Ratio: 22
- Walk Score: 19
Waianae is known for its laid-back atmosphere and slower pace of life, making it appealing to those seeking a serene and relaxed lifestyle. Moreover, Waianae benefits from a growing job market, particularly in sectors such as tourism, hospitality, and agriculture. Additionally, the limited supply of available housing drives demand for long term rentals with favorable yields.
3. Virginia Beach VA
- Median Property Price: $541,905
- Average Price per Square Foot: $344
- Days on Market: 55
- Number of Long Term Rental Listings: 1,802
- Monthly Long Term Rental Income: $2,226
- Long Term Rental Cash on Cash Return: 3.61%
- Long Term Rental Cap Rate: 3.67%
- Price to Rent Ratio: 20
- Walk Score: 21
Virginia Beach is a highly desirable coastal city known for its beautiful beaches, vibrant boardwalk, and recreational amenities. It boasts a robust and diverse economy, with significant sectors including tourism, military, healthcare, and education. This economic stability contributes to a robust rental market and a reliable pool of potential tenants.
4. Bethlehem PA
- Median Property Price: $545,602
- Average Price per Square Foot: $375
- Days on Market: 223
- Number of Long Term Rental Listings: 198
- Monthly Long Term Rental Income: $2,251
- Long Term Rental Cash on Cash Return: 3.58%
- Long Term Rental Cap Rate: 3.65%
- Price to Rent Ratio: 20
- Walk Score: 84
Bethlehem’s diverse economy provides a stable job market and a steady influx of potential tenants. Its proximity to major metropolitan areas like Philadelphia and New York City makes it attractive to commuters, increasing the demand for rental properties. Also, the presence of renowned universities contributes to a consistent student population in need of housing.
5. Greenville SC
- Median Property Price: $524,255
- Average Price per Square Foot: $1,375
- Days on Market: 76
- Number of Long Term Rental Listings: 140
- Monthly Long Term Rental Income: $2,060
- Long Term Rental Cash on Cash Return: 3.52%
- Long Term Rental Cap Rate: 3.58%
- Price to Rent Ratio: 21
- Walk Score: 37
Greenville has experienced significant economic growth and transformation in recent years, attracting major corporations and creating a robust job market. Moreover, its relatively affordable cost of living makes it a great option for individuals seeking an excellent quality of life without spending too much. These are a few reasons it’s a perfect place for real estate investing.
5 Best Places to Find Condos for Short Term Rental Investment
If you prefer to buy a condo unit for short term rental investment, then you should look for condos for sale in the best short term rental markets. The optimal location for vacation rental condos is one that’s near tourist attractions. If you want to target business travelers, you can try searching for condos available for sale near business areas, too.
Make sure that the place is close to essential amenities, like dining, public transportation, and recreational facilities. Also, the location should be safe for your guests, so be sure to check the crime rate in the area before you decide to buy a condo unit for your investment.
Below we have listed the five best places for investing in condos. We only included short term rental markets with a median price of below $1 million, at least 100 active Airbnb listings, and an average rental income of $2,000 or more. Only markets with cash on cash return of 2% or higher and occupancy rates of at least 50% are considered.
Here are the top five cities for investing in short term rental condos according to Mashvisor’s short term rental data as of April 2023:
1. Harvey LA
- Median Property Price: $317,967
- Average Price per Square Foot: $146
- Days on Market: 62
- Number of Short Term Rental Listings: 1,019
- Monthly Short Term Rental Income: $3,997
- Short Term Rental Cash on Cash Return: 8.47%
- Short Term Rental Cap Rate: 8.62%
- Short Term Rental Daily Rate: $201
- Short Term Rental Occupancy Rate: 56%
- Walk Score: 52
Harvey is strategically located close to New Orleans, a popular tourist destination. Because of this, it offers easy access to a steady stream of visitors seeking accommodation options. Additionally, Harvey benefits from its proximity to major attractions, like the French Quarter, Garden District, and numerous festivals. This ensures a high demand for short term rentals.
2. Rileyville VA
- Median Property Price: $342,227
- Average Price per Square Foot: $234
- Days on Market: 25
- Number of Short Term Rental Listings: 154
- Monthly Short Term Rental Income: $4,029
- Short Term Rental Cash on Cash Return: 8.28%
- Short Term Rental Cap Rate: 8.41%
- Short Term Rental Daily Rate: $235
- Short Term Rental Occupancy Rate: 56%
- Walk Score: 10
Rileyville boasts a picturesque location in the heart of the Shenandoah Valley. It is surrounded by stunning natural beauty and is close to Shenandoah National Park. It attracts outdoor enthusiasts, nature lovers, and tourists seeking a peaceful retreat. In addition, the area’s abundance of recreational activities ensures a consistent flow of visitors throughout the year.
3. Marrero LA
- Median Property Price: $342,242
- Average Price per Square Foot: $162
- Days on Market: 64
- Number of Short Term Rental Listings: 1,074
- Monthly Short Term Rental Income: $3,626
- Short Term Rental Cash on Cash Return: 7.85%
- Short Term Rental Cap Rate: 7.99%
- Short Term Rental Daily Rate: $212
- Short Term Rental Occupancy Rate: 55%
- Walk Score: 66
Marrero’s affordability compared to downtown New Orleans makes it an attractive choice for budget-conscious travelers, providing a competitive advantage in the short term rental market. The town’s diverse attractions, such as swamp tours, historic sites, and cultural festivals, offer unique experiences for guests.
4. Melvindale MI
- Median Property Price: $144,886
- Average Price per Square Foot: $307
- Days on Market: 117
- Number of Short Term Rental Listings: 110
- Monthly Short Term Rental Income: $2,056
- Short Term Rental Cash on Cash Return: 7.71%
- Short Term Rental Cap Rate: 8.00%
- Short Term Rental Daily Rate: $122
- Short Term Rental Occupancy Rate: 54%
- Walk Score: 64
Melvindale’s strategic location near Detroit, a major economic and cultural hub, creates a high demand for accommodation options outside the city center. Its proximity to major attractions, such as Ford Field and Comerica Park, makes it an appealing choice for tourists and business travelers seeking convenient access to these destinations.
5. Maywood IL
- Median Property Price: $236,316
- Average Price per Square Foot: $143
- Days on Market: 106
- Number of Short Term Rental Listings: 311
- Monthly Short Term Rental Income: $3,156
- Short Term Rental Cash on Cash Return: 7.17%
- Short Term Rental Cap Rate: 7.34%
- Short Term Rental Daily Rate: $164
- Short Term Rental Occupancy Rate: 57%
- Walk Score: 58
Maywood’s convenient location near major highways and public transportation provides easy access to Chicago’s renowned attractions, like museums, theaters, and sporting events. The town’s diverse cultural scene, local festivals, and community events make it a great destination for tourists and business travelers—that’s why it’s an excellent place for short term rentals.
Benefits of Investing in Condo Real Estate
Before you search the web for “condos near me,” let’s first discuss why condo rentals are a good real estate investment. Buying condo units is one of the easiest ways to invest in real estate, especially for first-time investors who don’t want to go through the hassle of performing renovations.
Here are some of the benefits of investing in condo rentals:
- Condos are relatively affordable: Condominium units typically come at a lower cost than single-family homes. Plus, you have the option to buy smaller units like a studio or one-bedroom unit that suits your budget. Moreover, you won’t need to perform renovations that are often necessary with single-family homes.
- Condos are near desirable areas: Condominiums are often in hot places, such as city centers. Unlike most single-family homes in secluded neighborhoods, condos are typically close to public spaces and amenities that residents and travelers prefer.
- Condos offer amenities most single-family homes don’t have: Another benefit of investing in a condo unit is that you can enjoy its various amenities. Some condos offer access to swimming pools, gyms, elevators, and other facilities unit owners can enjoy. If you rent your condo unit, you can charge higher for these amenities.
- HOAs manage condos: Since condo units are collectively a community, homeowners association manages the building. Unit owners have greater peace of mind because the HOA can take care of issues like repairs and maintenance, as well as maintaining the external upkeep of the building.
- Condo laws usually favor landlords: Since condos are under an HOA, there are laws that residents need to follow. Fortunately, these laws generally favor landlords, which is beneficial if you plan to rent out your condo unit.
3 Easy Ways to Find Nearby Condos
Like anything in real estate investing, finding condos for sale can be done in various ways. In this section, we will focus on the simple methods that every beginner rental property investor can use. Here are some of the options that are available to you when you are looking for condo real estate investments:
1. Work With a Real Estate Agent or Broker
One easy way to find condos for sale is to work closely with a real estate professional. Real estate agents and brokers have established networks in the real estate housing market and know the latest listings for sale. This is especially helpful for novice condo investors as they can avoid pitfalls when finding suitable investment properties.
Here is what working with a professional can offer you:
- Access to the MLS database where you can find condos for sale
- Detailed breakdowns of each neighborhood in your local real estate market
- Assistance in implementing a coherent and realistic rental strategy
- Guidance when it comes to exploring your investment property financing options
- Simple resolutions to any issues faced during the purchasing process
- Suggestions on the property management company that you should work with
Before retaining the services of a real estate agent, make sure to go over the commission structure to avoid overpaying. Knowing how much they charge is crucial because it allows you to set a budget and decide whether the fees are worth their services.
2. Use Online Real Estate Investing Tools
Online tools have become an integral part of real estate investing. In fact, most savvy investors incorporate them in every step of the process, from property searches to ROI calculations. It is why using reliable online platforms has become the easiest way to find condos worth investing in.
Instead of searching the web for “condos near me,” real estate platforms offer more efficient solutions. A great option that is worth considering is Mashvisor.
How to Use Mashvisor to Find Nearby Condos
Mashvisor is a real estate analytics platform that allows you to find the best investment properties depending on your chosen investment strategy. The good news is that using Mashvisor is relatively easy, even for first-time real estate investors.
Here are the steps for finding the best condos for sale:
Step 1: Find the Right Markets to Invest in
You can use the Market Finder to find the best rental markets based on your chosen investment strategy. Just select your preferred state, and you’ll see the top markets for investing. Once you find the city you like, zoom in on the map to find the best neighborhoods for your preferred rental strategy.
Step 2: Search for Condos for Sale in Your Chosen Market
After choosing a few areas to invest in, you can use the Property Finder to zero in on the best condos for sale in those markets. Simply set the property type to condos and use filters like budget, rental income, occupancy rate, cap rate, cash on cash return, and more. It allows you to find listings that match your criteria.
Thanks to this tool’s advanced AI technology and machine-learning algorithm, you will get highly accurate results in a timely manner.
Searching for profitable investment properties in any market of your choice is made easier and more efficient with Mashvisor’s Property Finder.
Step 3: Analyze the Condo Units Before Deciding Which One to Buy
The property finder lets users access the site’s investment property calculator, allowing you to conduct a thorough real estate analysis for each condo listing. The real estate data you need is already provided, so you don’t need to do any manual research to determine if the property will make a good investment.
The best thing about this rental property calculator is that it is interactive, meaning you can easily change some figures for an accurate calculation. You can configure your financing method, customize the expenses, and update the nightly rental and occupancy rates for Airbnb. It allows you to get more personalized results, making it an ideal Airbnb calculator.
Step 4: Choose a Property to Buy
After you have compared several condos for sale, the next step is to choose which condo is best for your investment based on your chosen strategy, budget, and other factors. In most cases, Mashvisor offers ways to contact the property seller directly through the platform, making the negotiation and buying process much simpler.
Start a 7-day free trial with Mashvisor today so you can get started with your condo investing.
3. Consider Checking Off-Market Listings
Off-market properties are real estate sales that take place outside of the MLS. Looking for off-market condos for sale can be a great way to land undervalued real estate investments that provide a wider profit margin. There are several ways to access off-market listings, and here are some of the most effective ones:
- Use direct mail marketing to reach potential condo sellers.
- Explore your real estate network.
- Sift through public records to find recent foreclosures and short sale properties.
- Use the Mashvisor Property Marketplace to find and analyze the investment potential of hundreds of off-market properties in our database.
If you’re just a beginner, the best option is to use Mashvisor Property Marketplace. It eliminates all the manual work in finding off-market real estate deals.
Now that you understand how to find a condo, let’s delve into some of the moving parts you need to be aware of when buying a condo as a rental property.
Important Things to Remember When Buying a Condo to Rent Out
Buying a condo to rent out involves dealing with a unique set of rules and regulations. Chiefly among them is the condo association rules. While the nature of these rules varies from one association to another, here are a few things that you should look into when you are planning to rent out a condo:
- Fees: The fee structure is one of the main factors you need to consider when setting a rental estimate. Some association fees merely cover basic necessities, while others extend to a broader range of amenities. Make sure to factor other associated costs into the rent to avoid paying them out of your pocket.
- Rental regulations: State and local laws are not the only ones regulating rental condos. In fact, the condo association can impose several restrictions, especially with short term rentals. For example, your association might ban short term rentals in the building even though they’re legal in the city.
- Pet policy: Typically, the condo association imposes building-wide pet policies. In some cases, the policy might differ for owners versus tenants. Ensure you understand the pet rules and include these in your lease agreements or short term rental house rules.
When searching for “condos near me,” be sure to be familiar with the rules and regulations of the condominium association before deciding to buy a unit. These rules can significantly impact your profitability if you plan to rent out your condo investment either as long term or short term rental.
Finding Condos for Sale: The Bottom Line
Whether you plan on buying a vacation condo or investing in one as a long term rental property, this simple guide should be enough to help you get started. Before you search for “condos near me” online, check out your other options on how to find the best condo units for rental investment.
To be a successful condo rental owner, make sure to set the proper rules and regulations that align with the condo association’s rules. Keep in mind that condo associations charge fees for amenities and the upkeep of the property, so it’s crucial to know how much these fees are. This way, you can include them in your rental rate to avert the extra cost.
As mentioned, the best way to find condos for sale is by using Mashvisor’s real estate tools. Aside from helping you identify the best markets based on your preferred rental strategy, Mashvisor also allows you to search directly for listings on the platform. This makes it easier for you to find the right investment property.
What’s more, Mashvisor provides all the necessary property information to help you decide if the property you are interested in buying will be worth your time and money. By using Mashvisor, you won’t need to do manual research and analysis. Plus, you can use its reliable rental calculator to help you determine the best strategy for a particular condo unit.
Find out how Mashvisor can do wonders for your real estate journey. Schedule a demo today to learn more.