As an investor you are always looking for the best states, cities, and specific areas in these cities to invest in, especially if you are buying to hold long term. CNN recently released a report with their finding which should be of interest to any investor when determining where to buy. The cities listed below are part of what the top markets according to the findings. RealtyTrac1 also echo’s this sentiment, adding that investors can find rental and “fix and flip’ properties which will return double-digit returns. Here are some of the results taken from the CNN report.
Wichita Falls, Texas
- Median home price: $84,000
- Median rent: $938
- Return on investment: 13.4%
Mom-and-pop investors who buy properties in this North Texas prairie region and rent them out are seeing double-digit returns on their investments, according to a report from RealtyTrac.
Much of the economy relies on oil production and farming. Homes are cheap and rents — at a median of $940 a month — are pretty lucrative.
The nearby Sheppard Air Force Base helps. It not only accounts for 20% to 25% of the area’s economic activity, but supplies a steady stream of renters. “Many of the service members know that they’re only going to stay three or four years and they choose to rent,” said Danny Steed, a local real estate broker.
A good example of the homes in the area is this a 1,700 square-foot brick home in Wichita Falls, which was recently listed for just $89,900.
Lubbock, Texas
- Median home price: $111,000
- Median rent: $1,089
- Return on investment: 11.8%
With plenty of wide open spaces to build on, home prices remain low in and around Lubbock. Here, homes sell for almost half the national median price.
Investors who nab these deals typically rent the homes out to workers at nearby oil and gas fields or college students at Texas Tech University, which enrolls some 32,000 students, said local real estate agent, Lori Manning.
A three-bedroom house is a good example of what buy-and-rent investors in the area will find. For $115,000, a buyer gets plenty of space — more than 2,100 square feet — and many nice amenities like a gas fireplace and a large patio.
Syracuse, N.Y.
- Median home price: $120,000
- Median rent: $1,085
- Return on investment: 10.9%
With more than 20,000 students returning to Syracuse University’s campus each fall, there are a lot of opportunities for real estate investors to make money in this market.
The university keeps the economy steady here, but slow population growth — beyond the annual influx of college kids — has kept home prices low.
For example,a well-kept three-bedroom with a big backyard and deck can be bought for just $124,900 — about $90,000 below the national median home price.
Oklahoma City
- Median home price: $131,000
- Median rent: $1,176
- Return on investment: 10.8%
The Oklahoma City housing market, which sprawls into nearby Canadian County, is an especially good place to invest in rental properties.
Not only are homes here well below the national median home price of $210,000, but the area offers a wide variety of new homes to choose from and schools that appeal to buyers, according to Mike Malone, a local real estate agent. A brick ranch home, which lies in the southeastern suburb of Mustang, was built in 2009 and was listed for just $135,000.
As a result, a wide variety of people are investing in the area, from professionals looking to diversify their holdings to retirees trying to maximize their income. “People are buying rental properties because they can’t make any money on CDs,” he said. “It doesn’t take much brainpower here to make 10% buying to rent.”
Ithaca, N.Y.
- Median home price: $180,000
- Median rent: $1,604
- Return on investment: 10.7%
Cornell. Ithaca College. Finger Lakes School of Massage. This metro area is packed with colleges and other schools, making it a prime target for real estate investors looking for rental properties.
And while home prices aren’t as cheap here as they are in other markets on this list, landlords can make up the difference by charging higher rents: the median rent here is $1,600, among the highest on RealtyTrac’s list.
To see the full report, to http://money.cnn.com/ and search “top rental markets”. If you are a buy fix and flip investor this report will be useful as well.
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This information is intended to be used as a general guide. It is not intended to constitute legal advice and is not a substitute for the advice of an attorney. While every effort has been taken to present the information accurately, this document may not be infallible. No warranty is made that these materials are current, complete, accurate, or suitable for any particular purpose. You should seek advice from your attorney before proceeding with any real estate transaction.
Source(s):
1. Top 5 Markets to Buy Rental Properties in, Les Christie, September 30, 2013, CNN, http://money.cnn.com/gallery/real_estate/2013/09/30/rental-markets , Retrieved October 4, 2013
