(FinancialHealth)- The rental market is a complex machine. It takes someone who knows it well and has the necessary experience to turn out on top. There are three factors that you need to consider before investing any money in buying up rental properties, which are: job growth, population growth, and affordability. Putting these three factors together, you’ll get the ideal recipe for investment in terms of both cash flow and appreciation. We’re going to show you just a couple of places in the US market, which you should consider for putting your money into rentals.
Location #1: Albuquerque, New Mexico
Enjoying a steady rate of population growth and stable prices, Albuquerque is fertile land for any real estate investor looking to put their money into rentals. With median prices at around $219,000, tenants in this location end up paying almost $1,200 every month. Prices depend on the specific neighborhood that either the landlord or the tenant is interested in. In terms of potential for job growth and local economics, Albuquerque is considered New Mexico’s Silicon Valley, known to be a hub for the state’s quickly expanding IT sector. You’ll also find that Netflix has moved its hub for US productions to Albuquerque. If you’re worried about taxes, Albuquerque prides itself on having one of the country’s lowest tax rates, which is 0.78%.
Location #2: Atlanta, Georgia
Having a prospering local economy and a growing population, Atlanta is an ideal place for investors who intend to buy up rental properties. You’ll find that the median house prices are about $247,000 and rents are $1,573 per month. If you’re concerned about not being to find those who can afford the rent, Georgia prides itself in being one of the top ten states to make a speedy economic recovery from the pandemic. Atlanta is also attracting many people who want to relocate from more expensive places like New York City. The real estate market in this city definitely offers those interested in investing in rental properties a significant opportunity for equity growth.
Location #3: Charlotte, North Carolina
Take a trip down south to North Carolina, and you’ll find an opportunity of a lifetime. Though you may think the south is quiet, it is indeed buzzing with activity, especially in the property and real estate market. Investors can find true potential with Charlotte’s economic success and its growing property sector. The metropolitan area enjoys a median house value of $249,275, in addition to the average rent being $1,502. One of the most attractive aspects of Charlotte as a location is that it is healthy for good equity growth, given that a lot has been invested to sustain job growth and many Americans are looking to settle down there.
Location #4: Baltimore, Maryland
One of the only places rental real estate investors should be going bye-bye to is going buy-buy in Baltimore. With its culturally diverse and powerful job market, you’ll be sure to find tenants who are willing to fork over the money to settle down in no time. Home values in Baltimore vary, with the average price being $301,000.
However, in some areas of the city, you may find that residential prices can be higher than the national average. You will also find that some remodeled homes can end up valued at around $160,000. The median rent in Baltimore is $1,655, but in some cases, it can be as low as $1,500. In terms of job growth, there’s been a 1.2% increase and it’s expected to grow within the coming years. With the economic recovery underway, Baltimore is sure to become one of the best places you could possibly go to for profitable rental investment.
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