According to Investopedia, an investment property is “real estate property that has been purchased with the intention of earning a return on the investment, either through rental income, the future resale of the property or both.” In order to successfully make a profit with this type of property, it’s important to thoroughly research the location where you might invest. In fact, there are three features in particular you should look at:
- The city’s population growth
- Job growth
- Home price growth
With healthy population, job, and home price growth, you will most likely find a higher return-of-investment (ROI), whether you make more through rent or have the opportunity to flip the property quickly and at a higher price. Based on these three economic factors, today’s best cities to buy investment property include:
- San Antonio, TX: With affordable housing ($200,522 average home) and one of the highest job growth rates in the country, San Antonio is a great place to buy an investment property. Population growth has continued steadily rising and currently hovers around 6 percent, making it fairly easy to flip a single-family home at any time.
- Baton Rouge, LA: Within the past couple of years, Baton Rouge has significantly developed in a number of job-creating industries. In addition to the gas and chemical sector, this bustling city now offers a wide variety of healthcare, technology, culinary and arts companies for an increasing annual job growth rate. Apart from great industrial growth, Baton Rouge is home to some of the most affordable housing, with the average home price growing from a $154,000 average.
- Dallas, TX: Dallas has continued to show strong economic development throughout the years, as the annual job growth rate continues to linger around 3.5 percent. With an even stronger population growth rate of 6.2 percent and a lower, but growing, home price average around $211,000, this city offers great opportunities for borrowers looking to purchase an investment property.
- Austin, TX: This third Texas metropolitan city boasts very healthy housing averages for property investors. From a healthy job growth rate of 3.3 percent to a predicted home price growth rate of 27 percent throughout the next couple years, Austin is a great place to rent out a property or flip a home.
- Tampa, FL: Tampa is the last city on the list that almost guarantees a successful property investment. Three economic factors contribute to this rating: high population growth currently at 3.1 percent, growing home prices starting around $193,000 (many of which have been renovated since the recession), and a rapidly increasing job growth rate (2.6 percent).
No matter which beautiful city you decide to purchase an investment property in, you’re sure to enjoy the financial benefits—especially with the help of one of the many Eustis lenders located throughout Texas and Louisiana. For more information about buying an investment property, or to learn more about home financing, contact one of our mortgage specialists today.