Looking for the perfect real estate investment opportunity? Consider these five cities that consistently rank at or near the top of the list. These top five boast affordable homes for sale in attractive neighborhoods where competition to rent is high.
Surprisingly, home prices in Orlando are still highly affordable, despite the popularity of Disney World Resort, LEGOLAND and SeaWorld. Prices here run roughly 23 percent below the national average, coming in at around $150K. Orlando's population, however, continues to grow. This means more and more individuals and families will be needing homes in this area in the coming months. Additionally, the median annual income is a respectable $42K, and both equity growth and job growth are expected to increase much faster than national averages, says the RealWealth Network. These factors combine to make Orlando a number one market for investors hoping to generate income from rental properties.
Regardless of whether they're coming in search of Penguins or Steelers, people in Pittsburgh are looking for properties to rent. With average home prices beginning around $72K, there's plenty of room for property owners to turn a quick profit when they bring in monthly rents around the $850 mark.
Rocket City was named America's best affordable place to live by U.S. News in 2019 due to its low cost of living and above-average annual incomes. With average incomes around $53K and house values averaging around $166K, Huntsville is an investor's dream. Plus, there are plenty of places to work in Huntsville, including the Marshall Space Flight Center, Boeing and the University of Alabama.
Houston boasts Fortune 500 companies for days, including Phillips 66, Sysco and Halliburton. There's no shortage of jobs, yet homes are still affordable. This puts Houston near the top of the list for investors who hope to turn a profit in rental real estate in Bayou City. The average home costs between $144K and $159K, and the average annual income is a comfortable $62K. Monthly rentals here begin around $1,300, but they may stretch as high as $1,440. These stats make Houston a good place to put your real estate money.
Cleveland is home to a wealth of high-earning, college-educated millennials, and most of them are renters. A thriving economy, coupled with affordable home prices, lands Cleveland on the list of top places to invest your real estate money. You can buy a property here for $103K, and rent it for almost $1,200 a month easily.
If you're ready to dive in to rental real estate properties, these five markets are pretty much certain to keep you afloat.