Purchasing a rental property to amp up your investment portfolio can be a fantastic way to become a seasoned investor. If you make intelligent choices and put in the work, a rental property can be lucrative and rewarding. As a first-time investor, the idea of buying a property for rental purposes might feel overwhelming, but there are some ways to help prevent disaster and give you a good foundation and provide you with some incredible passive income.
Real estate in certain cities can be highly competitive, and there are challenging properties in every area, but you can prevent buying something that will be a money suck by doing some due diligence. Doing research will be one of your best tools to prevent a bad investment. Hiring a team of professionals to help will be another. A professional and experienced realtor can listen to your concerns, wants, needs, and help you choose a property that is best for you. Looking into property management companies in the areas you’re interested in is a great idea as well.
Some criteria you should consider before showing interest in a property are vetting the neighborhood thoroughly, checking out local schools, research the crime rate, learn the cost of property taxes, consider the economy, find out the amenities, look at the rental market, and consider future development and the likelihood of natural disasters.
Considering these factors can help you determine what kind of property you want to invest in, what your ideal tenant looks like, and what kind of issues can arise. If you are looking to manage the property yourself, you’re bound by geography as you’ll need to be close by in case of emergency. Otherwise, you can hire a property management company to take over that responsibility for you.
Choosing a home in a big city will come with a hefty price tag. One of the best-kept secrets of purchasing a rental property is to do it in an area that’s lesser-known. There is a need for rental properties in all areas, and you’ll likely get a much better price on a home, which leads to lower rent prices while still making a profit. If all else fails, you can look into getting a townhouse or condo. If you are looking into this, you may want to check out these useful tips in how to buy a condo. A condo can be a great option as you often have use of additional shared facilities such as a gym, lawn, pool, or tennis courts. Here are some of the best places to purchase a rental property in the US for a great return on investment.
Sacramento, Arcade, Arden, Roseville, California
Typically, California seems out of reach for many real estate investors unless they have a lot of money to pay for high home prices. Particularly in busy metropolitan areas, many people look to purchase a home for themselves rather than an investment property. California is poised for growth, and some areas you may not know much about are some of the best places to invest. The average home price in the Sacramento-Arcade-Arden-Roseville area is just over $320,000. It is located about three hours northeast of San Francisco.
With a population of over 2 million, the area is poised for population and significant job growth. That alone will bring in plenty of renters to the area looking for their next home. Housing costs will continue to rise, making now the right time to get your foot in the door. With the Olympics coming to LA in 2028, it’s the perfect time to snap up a rental property before the market becomes red hot.
Arlington and Fort Worth, Texas
Texas has managed to come out of recent housing troubles almost unscathed, and prices for homes have continued to remain pretty affordable for many people. The economy is continuing to flourish, which only means that homes in the area will become more desirable, and the market will become more competitive. The average home price in Fort Worth’s Arlington suburb is around $230,000. Fort Worth is the sister city to Dallas, which is only about 45 minutes away. With under a million people, the city is smaller than other major Texan cities, but there’s always something to see and do.
Missouri may not be on the top of your list for the best places for real estate investing, but with the optimistic projections for growth, it could be a great time to get into the market. With the average house price being around $150,000 in Springfield, it can be attainable for many people to get into real estate investing, even those with the lowest budgets. The value of homes will likely correct itself and jump up in the coming years. The economy is continuing to flourish, which will bring more people to the area. Especially when people relocate to an area, they’ll need rental properties before buying their homes. There are under 200,000 residents who call Springfield home, and it’s a wonderful place to call home.
Northern Georgia is packed full of natural beauty, comfort, and peace that plenty of people want to experience. It’s an excellent place to retire, raise a family, or an outdoor haven for those who like to explore. The properties in Blairsville range in price from $180,000 to $300,000, and they boast large yards, incredible views, and much more. The small population is welcoming, and there are some great schools in the area for raising children.
There are plenty of cottages and larger homes that can cost anywhere from $600,000 to over $2.5 million. Not only are there plenty of things to see and do in Blairsville, but there’s almost no rush hour traffic, no hustle, and bustle, and life moves at a more relaxed pace. There’s always room for more rental properties in a small town like Blairsville, so real estate investors can find modest properties for modest prices.
Utah has more than just reasonable home prices to offer. With all the natural beauty you could want, it’s an ideal place to live or own a rental property. The average home price in Ogden is around $250,000. The city is located north of Salt Lake City, one of the most popular places in the world for outdoor sports. In recent years, housing prices have started to rise, so the sooner you can invest, the better. Tourists come from all over the world to visit this part of Utah, so there are plenty of tourism jobs. The local economy is continuing to grow as well.
Another desirable community for real estate investors is Provo. Located on the other side of Salt Lake City to the south, Provo is about two hours from Ogden and 45 minutes from the big city. Provo is poised for similar growth as Ogden, with the average house price being around $265,000. The growth is projected to be massive. With a prediction of a massive population increase in the coming years, it’s the perfect storm for real estate investors to jump into the market now.
Raleigh-Durham, North Carolina
While Raleigh has seen some substantial growth in recent years, it has hit a bit of a lull, making it a perfect opportunity for real estate investors. Currently, properties are selling for undervalue, with the average home price sitting around $275,000. Raleigh is the capital city of North Carolina, but it’s not as populated as other capital cities around the country. With a growing economy and projections to continue on an upward trajectory, Raleigh is a wonderful place to look for an investment property. Check out NC Home Search to find a home in the Raleigh area that fits your budget.
Ocean City, MD
Ocean City in Maryland is not a typical residential town; it’s a huge tourist area each summer along the eastern coast. This charming small town has miles of Atlantic beaches, salty air, and plenty of tourist attractions to enjoy. There are only around 7,000 residents that call Ocean City home year-round, but the town welcomes over 8 million tourists each year. Ocean City is an excellent opportunity for purchasing a property for long-term rentals or short-term rentals as a real estate investor. There are plenty of condos on the water that are some of the most popular real estate options.
You can find a property in Ocean City for anywhere between $130,000 to over $1 million for luxury condos and properties. There are plenty of tourism jobs, but there are plenty of jobs year-round with the mild weather throughout the winter. Ocean City is a dream destination for many people, residents, and visitors alike. Many people choose to retire in the area, and those who love the ocean, water sports, and outdoor activities can be the perfect place to call home. As a real estate investor, there is something in Ocean City for all budgets, so finding a fabulous residence that is ready for a renter will be easy to find.
Real estate investing in any of these fantastic cities or towns should be considered if you’re looking to build your portfolio. Some of the more tourist-popular areas allow for some flexibility for investors to have long-term rental options or short-term options like Airbnb. It’s a great time to be a real estate investor.