Profile picture for ybcgroup

What is the best city to buy rental properties?

Im looking to find out which city is the best to find rental property for your $$ and that has the population with a good median income.
  • August 01 2011 - US
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Answers (36)

Best Answer

Profile picture for lytespan23
My choice would be New Jersey.Reason being is their are multi family homes at great prices.I purchased a 3 family home on a short sale.In turn make double my mortgage payment.BTW i live in Florida.You just need a reliable handyman.It could work.Hope this helps
  • November 20 2011
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I agree... Las VEGAS!!! Great deals to be had ... contact me if interested in getting more info or having emails of possible homes sent to you.
Megansellsvegas@yahoo.com
  • March 03 2012
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NYC, #1 choice among investors
  • February 14 2012
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Profile picture for Devin Haub Remax
The best place for rental properties is definitely college towns. Because students are moving in and out of the place of where the college is, they are not likely to buy so rentals are in high demand. One of the best towns is the Provo, Utah area. There are 2 main universities that have about 40,000 students each, and are continuing to grow. Not to mention all the students at the U just 20 minutes away in Salt Lake. Another perk about rental properties in this area is the high number of married couples at each school; it is well known that family or couple takes better care of a rental property than a bunch of rowdy college boys or dramatic girl, so your properties should be in good hands!
  • February 14 2012
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Las Vegas is a city where double digit returns can in many cases be guaranteed yearly which is hard to do in most cities. I think not considering Vegas would be a mistake prior to entertaining other cities. If you allow the right agent to help I am sure they will work extra hard to ensure the best of outcomes . Best of luck
  • February 09 2012
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"Las Vegas picked #1 by Fortune Mag as the Best City to Buy and Rent Out a House.  NY Times picked Las Vegas as the Most Undrvalued Real Estate Prices in US.  European investors are fleeing the Euro and buying US Real Estate.  Vegas comes in #8 of all the cities all over the world as having investor minterest"

I would have to agree that Las Vegas is a great place to purchase rentals homes. With low rates, low home prices, and a strong rental market you can create positive cashflow with these properties, still get tax write offs, gain future appreciation, all while your tenant pays off your P+I payments and in 30 years you own the home free and clear.

I have already help many clients do this exact same plan several times in Las Vegas and Henderson.
  • February 08 2012
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College towns are usually a good bet because the rental market is so strong. I do business in Boulder, CO and although property values are high, rentals rates off set that considerably. The average cost per bedroom in Boulder is about $750-$850.
  • February 08 2012
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Profile picture for amrestivo
MEMPHIS, TN  There are incredible opportunities here to purchase at low prices.  In my 12 years as an agent, I have never seen such a demand !  I have calls coming in all day long from individuals looking for a rental.  These calls are from people looking to rent $500 houses and  increasingly so more expensive properties in the $1500 to $2000 range.
  • February 02 2012
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Corvallis, OR! Stable values, growing university, limited inventory...
  • February 02 2012
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A great place to purchase property to rent out is Jacksonville, NC and/or places that are close to a military base. Because the flow of people moving in and out of the area is so high, rentals properties are always being occupied for one to two year leases minimum. But you do have the option as the owner to rent it out month to month. There is so much new construction currently being built in the area so properties such as townhomes are great investment properties to purchase.  Many military personnel stationed on average two year at least, some such as the navy could be stationed in the area up to six years so they are always looking for rentals to live in because they did not want to live on base or there is a waiting list so they have no choice but to get a rental. Also older homes for sale are priced reasonably (low) so they can always be purchased at a great price and then rented out.
  • February 02 2012
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How about Elk Grove or Sacramento, CA. In Elk Grove you can find less than 10 years old homes selling for less than 150k. Elk Grove has one of the best school districts in CA, with STAR ratings at 9 or 10 statewide. For a 3 bed/2 bath home of this price, you can get a rent of around $1300-1400 p/month which translates to a yield of north of 8% per year, net of property taxes, principal/interest and insurance. Plus, Elk Grove/Sacramento is within driving/commuting distance from the Bay Area, where the high tech economy of silicon valley is booming. Median income in the South Bay is astronomically high with fresh graduates making 100k+ p/a.
  • January 28 2012
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http://money.msn.com/retirement-investment/10-best-cities-to-buy-rental-property-thestreet.aspx?cp-documentid=6828239

Here is a list of places. With home prices so low, and rent rates increasing, now is a better time in most cities to invest. San Diego is a tough place to do so but even now, there are options out there to make a decent cash flow on your investment.
  • January 23 2012
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Our rental inventory is very low, and our rental prices are increasing. My personal opinion is Louisville, Ky is a place to research.
  • January 23 2012
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Las Vegas picked #1 by Fortune Mag as the Best City to Buy and Rent Out a House.  NY Times picked Las Vegas as the Most Undrvalued Real Estate Prices in US.  European investors are fleeing the Euro and buying US Real Estate.  Vegas comes in #8 of all the cities all over the world as having investor minterest

  • January 22 2012
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The biggest thing you need to look for when purchasing rental property is an area where home prices are low and rent prices are high. This means more cash flow for you!

Don't hesitate to buy out of state and hire a property management company to do the work for you, that will allow you to own more rental property and cash flow even more.

As someone else mention, Saint Louis, MO is a great place to invest in rental property because homes are selling (especially in the city proper) at fire sale prices yet rental prices continue to rise. Las Vegas is also in a similar situation and worth looking into for rental property.

Best of luck!
  • January 22 2012
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I don't know that I would cut my teeth as a landlord on NJ. They have some of the most restrictive landlord-tenant laws in the country.

Look for low-dollar properties and recessions-proof industries (especially big college towns). I have a property in Philly that takes about 35 seconds to rent (ok, a little longer than 35 seconds). It has a lot of renters from all of the schools there and the overall culture there. However, I don't know that I would recommend becoming a landlord in a city you aren't living in. Money from rentals gets sucked out pretty quickly if you are paying a property management company, contractors, etc. Look for places to make a fair profit, not a fast one. Rentals should be evaluated for long-term viability and being a landlord is not for everyone or even most of everyone.

  • November 21 2011
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I would consider major cities and within the city stay as centralized as possible (close access to major employers, schools, etc), and with close access to major freeways. In determining which cities, obtain the following basic information in your research: 1- Median income 2- Average sales price for a 3 bed 2 bath home 3- Average rent for a 3 bed 2 bath home.
Copy all the data into a spread sheet. Take the ratio between Ave price and Ave rent. The cities with highest spread between rent & sale price would give you a general idea of locations to focus on (most potential for highest returns on your money). Also consider Median income levels to Ave rent amounts to arrive at stability of the local markets considered.
Hope you find this method useful - It is common sense.

Cyrus Ghovanloo
Realty One Group/ Phoenix, AZ
Certified Investor Representative
 

  • November 21 2011
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Profile picture for lytespan23
Well i have  a 2 family in Newak Nj,which is the worst place on earth to own a rental property.Or even have a primary res.And i have a 3 fam in Elizabeth Nj.Elizabeth is an easier city to deal with.You can find some decent people to rent.
I dont think your going to find any property 10k and under,but might want to do some research on (bank owned)properties,and (approved) short sales.If you need contacts,let me know.Good luck
  • November 21 2011
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Profile picture for ybcgroup
Thanks,

I have family that live in New York and they actually told me the same thing. Which areas are some areas that are not that bad (Crime-wise) and still make a good investment for the future?
  • November 21 2011
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I will just say that our market here in OKC is still great, especially for investors and first time buyers!! Now is a great time to buy and we help many investors in our area. We are seeing a dire need for higher end rentals such as medium sized single-family homes for those who had to declare bankruptcy in the last few years and are still unable to buy.
  • November 18 2011
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Fort Myers FL is a huge bargain!  Look at 33905 zip code on Zillow to see what's there.   Port Charlotte FL is one of the most reasonably priced in the US and has been chosen #1 place to live.  Get a good realtor with a rental division in house. That way the property they sell you is in fact rentable! (you're not familiar and you are depending on your broker).

FL is a lot of retirement money.  If you are buying to rent the property, you can make good money 'in season'.  Snowbirds usually pay twice or more than twice the average rent to be here Oct-March. If you work your numbers right, that could cover you for almost the whole year!

  • August 04 2011
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South Padre Island & Laguna Vista Texas are both EXCELLENT vacation destinations.
  • August 04 2011
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South Padre Island & Laguna Vista Texas - EXCELLENT vacation destinations.
  • August 04 2011
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The New York Times has a Rent vs Buy Chart for 40 US Cities.For example   Las Vegas and Maimi BUY, San Francisico and New York are Rent.  Every major citiy is rated. 

David Cooper
  • August 03 2011
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Profile picture for sunnyview
You'll have to explain how Folsom qualifies as a good place to buy rental property. The buy in cost is higher than outlying areas and the rents are not significantly higher. What am I missing?

Telling people to buy in Folsom is almost as bad as telling them to buy in Davis. Yes, you have a ready pool of renters, but no, they will not pay enough rent to cover the higher taxes or expenses if you buy there and still give you positive cash flow.
  • August 02 2011
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St Louis has property for days 16k and under. They are not total wrecks. 2 bd 1 baths rents can start at $500 depending on the area and how much of a turn over rate you want. I have tenants about to enter their 3rd year. I can help you. 
  • August 01 2011
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since nobody is bothering to read all the posts, I'll help recap for you:

1. He wants homes for under $10,000
2. He wants to fix and rent them out.

good luck with that!
  • August 01 2011
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I recommend an income property to be near a state university, OR in Folsom, California. It is a very nice suburban neighborhood with award winning schools, many local amenities, 20 minutes from the state capital, an 1 1/2 hr trip to Lake Tahoe, an 1 1/2 hr trip to San Francisco, and a strong need for rental homes.
  • August 01 2011
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Profile picture for Jim Fong
Las Vegas! 
Although there are many foreclosures and short sales here, this creates a great need for rentals since those losing their homes must rent now. 
In addition, the prices have dropped so much that the price to buy is much lower than rental rates. For example, a client who recently bought in Las Vegas for $86,000, had a mortgage payment approximately around $600, on a house he would have paid at least $1000 to rent. That was only with 3.5% down on a FHA for an owner occupied buyer.  I have many examples of actual homes (I will give you addresses, dates, and final #'s) I have sold and rented out for investors. Other advantages of owning rentals in Las Vegas include favorable Landlord laws and no state income tax.
Las Vegas! by far
  • August 01 2011
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Profile picture for sunnyview
I would like to hear about why agents feel their market is best for rental property investment. What are the local vacancy rates? What are the going rents compared to the PITI of the investment (ROI)? What is the job outlook in your local area? what kind of supply for rentals do you foresee in the next 1, 2 years, 5 years?
  • August 01 2011
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