The Earth is Huge
Planet Earth measures out to be 6,371 km in radius. 6,371 km of ground to cover in hopes of finding the perfect location for real estate. That’s a lot of ground to cover with very little real estate time. This is where we come in. Mashvisor is here to provide you with the top 10 locations for most profitable investments in real estate. We plan to not only give you the best places to invest in real estate, but we can be here to give you the numbers too.
The most successful real estate investors evaluate the property they have their eye on. That’s you. Once you choose your ideal property, you need to know whether or not it’s going to get the cash flowing. Cash on cash return, return on investment, cap rate, and occupancy rate are all metrics used for property valuation. This is why Mashvisor is here! We can give you all of those numbers and more, so don’t pass up on our product.
Without further ado, here are some of the top locations for property investing.
Top Features of a Profitable Rental Property
What makes a rental property one of the most profitable investments? It has been found that these factors are some of the most important indicators of potential profit:
- Real Estate Price
- Local Vacation Rental Rates
- Insurance, taxes and Maintenance Costs
- General Popularity of the Tourist Destination
How to make money in real estate is an easy question to answer when you own a rental property. The profit is there, and it’s waiting for you to take it into your protective financial hands.
To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.
Top 10 Locations of the Most Profitable Investments of Real Estate
Related: What Is Location in Real Estate Investing?
Why They Made it to the Top 10
There has to be some reasoning behind why these cities made it to the top 10, or they would just be a list of names. Here are some of the main reasons we consider them the top dogs of real estate location.
Orlando, Florida Makes the Cut as One of the Most Profitable Investments
- Renting Instead of Buying is On the Rise
Many home seekers are choosing to rent instead of buy. This is causing rental rates to skyrocket (approximately 8% just this year)!
- Great Cash Flow
Values are rising with no sign of declining.
Related: Cash Flow Investing Is the Key to Success in the Real Estate Market
- Low Rates
Property taxes and insurance are low, plus there’s no state income tax. Orlando is one of the few places where purchasing fully renovated, 3-bedroom properties in good neighborhoods, for as little as $122,500, is still a possibility.
- Ideal Tourist Attraction
Warm climate, beautiful beaches, world-famous amusement parks, entertainment, and attractions are what make up Orlando. This means vacation rental properties are perfect investments.
Pittsburgh, Pennsylvania on the Most Profitable Investments Pedestal
- Good Local Economy
The economy thrives on healthcare, education, technology, robotics, and financial services. A good local economy is a nice projection of who you can expect to rent out to, and how economically stable they are.
- Successful Markets
Orlando is considered one of top 10 housing markets for redevelopment and growth. Rental single-family homes alone rose 12.6 percent and the average gross yield was over 15 percent! Those, are good numbers.
Most Profitable Investments- Huntsville, Alabama
- Economic Growth
Huntsville is one of the most well-known cities in the Southeast part of the country. USA Today named Huntsville “one of the top communities leading the economic recovery,” while Money magazine labeled it “one of the nation’s most affordable cities.” An improving economy is a good sign when investing in real estate.
- Employment Opportunities for Tenants
Redstone Arsenal is considered the top employer in the military with over 31,000 jobs. Next comes NASA Marshall Space Flight Center. This is no surprise, as Huntsville is well known for its technology, space, and defense industries. More job openings mean more tenants being attracted to the area. And you know what that means by now.
- A Real Estate Market that Offers a Number of Opportunities
Huntsville is considered one of the nation’s most affordable real estate investment markets. Also, it has a steady job market that offers STEM workers higher than average salaries.
- A Growing Population
38% of this growing population are renters. Investors interested in generating a profit from passive income producing assets will especially benefit.
Houston, Texas-One of The Most Profitable Investments
- Stable Landlord Friendly Market
Through real estate market analysis, both cash flow and equity growth are on the rise. It is more than possible to acquire investment properties well below their replacement value.
Cleveland, Ohio Aiming for the Title of the Most Profitable Investments
- Strong Real Estate Market & Potential
Cleveland is one of the strongest markets in the nation, offering investors high cash flow and future growth. The workforce consists of over two million people, making Cleveland the 12th largest economic region in the nation.
Related: Cleveland Real Estate Is Becoming Popular To Investors
Chicago, Illinois-Top Dog of the Most Profitable Investments
- Out of the City, into the Suburbs
Due to real estate prices soaring within Chicago’s city limits, people are moving out of the city and into the suburbs. As a result, prices of some Chicago neighborhoods have increased by 14%+ this past year itself. However, property in the area is still undervalued.
- Affordable Purchase Price
Believe it or not, you are able to purchase fully renovated rental homes from $80,000 to $150,000 that you rent for 1.2% of the purchase price! Investors looking to buy income property with high cash flow and strong potential for appreciation have a treat coming their way in Chi-town.
- Good News for Investors
Chicago is one of the last real estate markets where housing prices have not yet risen past their 2006 levels, all due to the intricate foreclosure laws. Real estate investors like yourself are taking advantage of the situation. Who wouldn’t when you are able to acquire income property at bargain prices.
Indianapolis, Indiana- A King in the Kingdom of the Most Profitable Investments
- Low Costs
Housing costs and the annual cost of living in Indianapolis are well under the national average.
- It’s a Good Time to Be an Indy Investor
Indy has a strong, diverse job market, great schools and universities, and plenty of sports attractions.
- Bonus Attribute!
You can purchase turn-key rentals for only $60,000 – $120,000. By “turn-key” we mean properties that are fully renovated to almost-new condition, leased to a quality tenant, and has excellent property management in place.
Most Profitable Investments-Kansas City, Missouri
- Affordable for Newcomers, Affordable for You
Many Americans have been following companies/jobs to “less expensive” cities, like Kansas City. What’s in it for you? Affordable real estate markets are resulting in a steady increase in rental demand.
Atlanta, Georgia Claims One Crown for the Most Profitable Investments
- Rapid Population Growth
Over the years, the Atlanta metro area experienced rapid growth, attracting families from all over the southern United States as well as the Midwest. The population grew almost a whole 4% yearly to match the demand for new jobs.
Last but Not Least of the Most Profitable Investments-Milwaukee, Wisconsin
- Millennials are Taking Over the Market
Milwaukee is one of the top 50 markets in the country for millennial renters. Around 80% of current tenants of the rental properties are millennials. This is primarily because of close proximity to employment, retail and recreational centers.
- Money Making Here We Come
You can expect good cash flow and use an appreciation investment strategy when investing in Milwaukee rental properties. Investment properties available consist of attractive return on investment rates. Rents are commonly above 1% of purchase price.
Ending Words of Advice: Build a “Protective Moat” for Your Property
We get that you’re probably wondering, what in the world is a protective moat, and what does it have to do with my investment property? We’re being figurative, that’s all. This idea of a “protective moat” around your investment property comes from Warren Buffet. Protection here is the symbolic meaning of keeping your investment property in demand.
As with any business, supply and demand are important because it’s what keeps the people wanting you. This same idea applies to the real estate business. It’s important to give your rental property some personality because we both know that there are hundreds out there. One of the best ways to do this is by picking out the location that separates you from the rest. This way, you create an “economic” moat.
New construction and future growth cannot replicate what you have, so embrace the individuality of your investment property. Once you establish a rental property in an area tenants love, the financial benefits start coming in. You can ask for high rent, enjoy low rental vacancy rates (since your tenants will most likely be long-term), and gradually increase your prices. Yes, that is the sound of money, money, money! And people still wonder why location is important in real estate.
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