If you’re among the many investors looking to obtain a buy-and-hold investment property on a budget, then you’ll appreciate this list! If you want to invest in real estate but reside in a more pricey city, then consider investing in one of these cities. You don’t have to go searching for properties out-of-state. For example, if you live in New York City, consider an investment property in Buffalo, which is included in this list.
Our team thoroughly analyzed the average median home prices in our database and selected the cheapest seven for your consideration. We’ve listed the cities with a brief description to help you decide where to invest.
Related: Buying Investment Properties With No Money
1. Augusta, GA
A relatively large city, Augusta has the second largest community in Georgia. As you stroll the streets, you will find people jogging, walking, and roaming the streets in and out of their military uniforms, for it is home to military base, Fort Gordon.
With a large number of workers in sales, service production, and office jobs, Augusta’s workforce is interestingly a mixture of white-collar and blue-collar jobs. It is also extremely ethnically diverse. Besides being a cheap city for buy-and-hold investment properties, we find that Augusta would be a good choice for both traditional and Airbnb investments.
Median Home Price: $95,876.9
2. Buffalo, NY
Another large city that is neither predominantly white-collar nor blue-collar; its work force is also a mixture of both. But, what is really unique about Buffalo is its young, ethnically diverse demographic. It is full of young, single, educated career starters. Buffalo has become a hub for young individuals looking to find like-minded people. The psychographic of Buffalo’s population are those who like to socialize, with opportunities to find friendships and romance.
Because of this unique, young demographic with many people looking to rent, we find that Buffalo is a great city for traditional buy-and-hold investment properties. On the other hand, Airbnb is also ideal because young people coming in and out of the city would most likely resort to Airbnb, which is an almost risk free way for you to invest in a popping city.
Median Home Price: $103,850
Related: Best Cities For Airbnb Occupancy Rates
3. Omaha, NE
Omaha, a vibrant, growing metropolitan area. It is the largest city in Nebraska with 900,000 people and 24,000 thriving businesses. Nine Fortune 1000 and five Fortune 500 companies are headquartered here. The majority of its workforce lie in the fields of sales, management, and service production, yet its diversified economy is not reliant on any industry.
Like, Buffalo, Omaha is home to young individuals—particularly individuals in their 20s and 30s, who are in the start of their career paths. It also home to citizens who have an overall higher education level than the average U.S. community. And thus, because of its growing economy, vibrant population, and cheap properties, we find that Omaha is a top contender for Airbnb and especially for traditional buy-and-hold investment properties, since long-term, quality tenants can be found here.
Median Home Price:$118,900
4. Allentown, PA
A major historical city for its large stock of pre-World War II architecture, Allentown is a medium-sized city, whose community makes the third largest in Pennsylvania. There are currently multiple local, state, and job training programs underway to improve the city’s economy—and their results are quite promising.
Allentown is yet another diverse city, with sizable African American and Hispanic communities. Its per capita income according to the 2010 consensus is relatively lower than of Pennsylvania, yet residents of all socioeconomic backgrounds are found here, which opens up options for finding tenants. Traditional buy-and-hold investments would be a better option for this city since Airbnb is not widely used here.
Median Home Price: $127,400
5. Memphis, TN
The most populous city in Tennessee; a leading commercial and industrial city. Its ideal location has made it one of the largest wholesale and distributing centers in the U.S., making it known as “America’s Distribution Center.” It is further one of the world’s largest markets for livestock and meatpacking. Healthcare and medical education are also among the top industries in Memphis, bringing in more than $5 billion a year.
The demographics are similar to that of Buffalo and Omaha—filled with vibrant, young career starters, making a great location for buy-and-hold investment properties, both traditional and Airbnb, but especially Airbnb since the city receives a lot of tourism every year.
Median Home Price: $137,450
6. Tampa, FL
A beautiful coastal city! It is another city with a young population. Tampa is predominantly a white-collar city, with almost 86% of its workforce employed in white-collar jobs.
It is a nautical city, with historical parts that touch the ocean, such as bays and inlets. This is a major factor that makes Tampa a popular location for tourists and visitors. It is also a dining and nightlife destinations. Being full of tourists makes it an excellent choice for Airbnb buy-and-hold investment properties.
Median Home Price: $139,825
Related: Real Estate Investing Beyond the 20 Mile Radius
7. Cleveland, OH
One of Ohio’s largest cities, Cleveland has become a world corporate center, including multiple leading national and multinational companies in various industries, such as insurance, transportation, and banking. It also is home to University Circle, a concentration of cultural, educational, and medical institutions, making it a great location for Airbnb buy-and-hold properties with so many users coming to see the attractions. Overall, it is a developing economy, full with an ethnically diverse population.
Median Home Price: $140,461.5
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