Many people are looking into investing in rental properties because the housing market is pretty stable at the moment, and many investors have seen a profit from their investments. While many people invest in properties that are tight in their hometown or home state, it can also be very profitable to invest in properties in other places.
One thing you should consider when investing in any type of property is the location. The location of your property has to have favorable conditions when it comes to attracting tenants. Some of these things are housing prices, population growth, job growth, and anything that will attract tourists or people in search of a home.
#1: Atlanta, Georgia
In the last decade, more than 700,000 people have moved to Atlanta and the metro area, with a total population of 6 million people today. Last year, many homes appreciated by 7%, even though the job growth dropped 4%. With both of these numbers being better than the national average, Atlanta hasn’t been affected by the pandemic as much as other areas throughout the country.
The median cost of a sing;e-family home is around $247,000, which is 3% less than the national median cost. This lower cost, combined with the increasing growth rate of the Atlanta metropolitan area, means that this is a pretty good housing market to invest in.
#2: Charlotte, North Carolina
Charlotte has a job market that is constantly growing, meaning that more people are moving to this area. North Carolina itself has a lot to offer with the mountains in the west and beaches in the east. This means that the state is likely to attract tourists year-round— tourists in need of a place to stay.
The median price of a home in Charlotte is about $249,275. Charlotte also had a population increase of 17% in the last 10 years. With a growing population, affordable housing, and many tourist attractions in the area, Charlotte is a good place to invest in rental properties.
#3: Dallas, Texas
Dallas has one of the fastest-growing populations in the country. It also is a pretty affordable place to live with a diverse job market. Despite the effects of the pandemic, Dallas still has more jobs being created compared to much of the rest of the country.
The average price of a single-family home in Dallas is $263,688, which is slightly higher than some areas of the U.S., but prices are much lower in the surrounding metro area. Home prices are also known to appreciate at a rate of over 50%. Even if you don’t make much from rentals in Dallas, you can still get more selling the house after it appreciates.
#4: Indianapolis, Indiana
The housing market in Indianapolis is unique because the average price of a home is $193,000 in the metro area. In addition to affordable housing, Indianapolis offers good school districts, a diverse job market, and several attractions. This is an ideal place for families to relocate to, meaning that you’re likely to have people wanting to rent your property.
#5: Jacksonville, Florida
The state of Florida generally sees a lot of tourists year-round, so it’s one of the best places to invest in rental properties. Jacksonville (located in North Florida) probably isn’t the first place people think of when investing in properties in Florida, but Jacksonville in particular has a steadily increasing population that is growing faster than Tampa and Miami.
The median price of a home in Jacksonville is $240,000. The diverse job market is expected to increase by 44% in the next 10 years. Population growth, job growth, and housing affordability are all good indicators of making a profit on rental properties. Florida is also a state that allows short-term rentals, whereas many states and cities do not. It’s important to be aware of local rental laws by city when it comes to investing in rental properties.
Once you’ve chosen a location to invest in a rental property, you’ll also want the actual property to attract tenants. No matter how promising the prospects are, if your property isn’t desirable, you’re not likely to keep tenants.
When investing in anything, you will always want to see that you’re putting your money into something worthwhile. With the housing market being in a stable condition, now is a great time to invest in rental properties.