With this said, homeowners are reaping the financial rewards of owning and renting real estate right now, so much so that they are borrowing against their equity to accumulate more wealth. But fret not, more houses could be for sale toward the end of the year, giving home buyers a greater selection of property inventory to choose from.
Related: Investment Analysis Spreadsheet Has Become Obsolete with the Investment Property Calculator
The Best Real Estate Investments for 2018
The economy is strong, and the US housing market is fairly optimistic, so if you want to buy the best real estate investment for 2018, make sure to invest in these markets (the data comes from Real Wealth Network):
Florida is a hot market for real estate right now, specifically Orlando, coming in as the first place for the best real estate investments for 2018. Besides the warm climate and sunny conditions, Orlando has the right formula for real estate success.
Top reasons why Orlando, Florida is one of the best real estate investments for 2018 include:
- Houses are affordable to buy; real estate investors can find a fully renovated home for under $120,000 and make a nice profit margin from renting it out.
- Positive economic indicators: job and population growth are looking sunny side up.
- Property taxes and insurance costs are relatively low.
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- Median Sales Price: $188,000
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- Median Rent per Month: $1,360
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- Median Household Income: $42,000
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- Population: 2.4 M
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- 1-Year Job Growth Rate: 4.20%
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- 5-Year Equity Growth Rate: 66.40%
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- 5-Year Population Growth: 14.20%
- Unemployment Rate: 4.5%
Top reasons why Tampa, Florida is one of the best real estate investments for 2018 include:
- The economy is one of the fastest growing in the country.
- Houses are pretty expensive here compared to Orlando, but real estate investors can find real estate opportunities at affordable prices if they look long and hard.
- There are many short-term rental opportunities here because of the robust tourism market in this city.
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- Median Sales Price: $136,000
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- Median Rent per Month: $995
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- Median Household Income: $43,514
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- Metro Population: 3.0 M
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- 1-Year Job Growth Rate: 2.10%
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- 5-Year Equity Growth Rate: 4.60%
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- 5-Year Population Growth: 8.70%
- Unemployment Rate: 4.60%
Related: Your Real Estate Investment Guide to Airbnb Rental Properties: How Does Airbnb Make Money?
Florida is hot hot hot for real estate, making Jacksonville another hot spot for real estate money making business.
Top reasons why Jacksonville, Florida is one of the best real estate investments for 2018 include:
- Forbes ranked Jacksonville as #3 on its list of the best cities in the US for jobs.
- Positive economic indicators and a booming economic market.
- Affordable housing prices and a relatively low cost of living.
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- Median Sales Price: $154,000
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- Median Household Income: $48,143
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- Metro Population: 1.5 M
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- 1-Year Job Growth Rate: 3.0%
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- 5-Year Equity Growth Rate: 38.70%
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- 5-Year Population Growth: 9.60%
- Unemployment Rate: 4.6%
Another no brainer! Cape Coral makes the list for the best real estate investments this year.
Top reasons why Cape Coral, Florida is one of the best real estate investments for 2018 include:
- Forbes ranked Cape Coral as the 10th fastest growing city in the nation.
- Affordable housing and high rental income.
- Strong long-term appreciation for residential real estate properties.
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- Median Sales Price: $217,000
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- Median Rental Price per Month: $1,650
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- Median Household Income: $51,000
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- Metro Population: 722,000
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- 1-Year Job Growth Rate: 2.44%
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- 5-Year Equity Growth Rate: 81%
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- 5-Year Population Growth: 17%
- Unemployment Rate: 4.8%
Top reasons why Pittsburgh, Pennsylvania is one of the best real estate investments for 2018 include:
- Very affordable to buy real estate with a good ROI.
- A steady growth in the economy makes this city one of the best for the housing market.
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- Median Sales Price: $137,000
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- Median Rent per Month: $1,140
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- Median Household Income: $36,000
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- Metro Population: 2.3 M
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- 1-Year Job Growth Rate: 0.27%
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- 5-Year Equity Growth Rate: 20.20%
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- 5-Year Population Growth: -0.63%
- Unemployment Rate: 4.70%
6. Huntsville, Alabama
Top reasons why Huntsville, Alabama is one of the best real estate investments for 2018 include:
- Low tax rates + high rental income = increased ROI.
- Job and population growth rates are on the rise.
- Houses are very affordable.
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- Current Median Home Price: $136,000
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- Median Rent Per Month: $995
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- Population: 500,000
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- 1-Year Job Growth Rate: 1.10%
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- 5-Year Equity Growth Rate: 4.60%
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- 5-Year Population Growth: 7.30%
- Unemployment Rate: 5.10%
Top reasons why Houston, Texas is one of the best real estate investments for 2018 include:
- Rental demand is steadily increasing, while supply is a little tight.
- Cost of living is below average.
- Because of the high demand and low supply, housing prices are on the rise.
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- Current Median Home Price: $150,000
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- Median Rent Per Month: $1,425
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- Metro Population: 6.8 M
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- 1-Year Job Growth Rate: 0.50%
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- 5-Year Equity Growth Rate: 44.20%
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- 5-Year Population Growth: 14.0%
- Unemployment Rate: 5.3%
Top reasons why Cleveland, Ohio is one of the best real estate investments for 2018 include:
- A great real estate opportunity for cash flow and real estate appreciation in this market.
- Very affordable to buy real estate.
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- Median Household Income: $51,000
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- Current Median Home Price: $122,000
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- Median Rent per Month: $1,140
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- Metro Population: 2.1 M
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- 1-Year Job Growth Rate: 1.20%
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- 5-Year Equity Growth Rate: 15.10%
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- 5-Year Population Growth: -1.00%
- Unemployment Rate: 5.5%
Top reasons why Cincinnati, Ohio is one of the best real estate investments for 2018 include:
- Rapid job and population growth.
- Very affordable to buy real estate and earn high rental income in return.
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- Metro Population: 2.1 M
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- Median Household Income: $51,000
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- Current Median Home Price: $143,000
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- Median Rent per Month: $1,250
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- 1-Year Job Growth Rate: 2.0%
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- 5-Year Equity Growth Rate: 17.0%
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- 5-Year Population Growth: 2.40%
- Unemployment Rate: 4.7%
Top reasons why Chicago, Illinois is one of the best real estate investments for 2018 include:
- 3rd largest city in the United States.
- Economic powerhouse.
- Affordable housing.
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- Metro Population: 9.5 M
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- Median Household Income: $63,000
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- Current Median Home Price: $176,000
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- Median Rent per Month: $1,650
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- 1-Year Job Growth Rate: 0.70%
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- 5-Year Equity Growth Rate: 18.0%
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- 5-Year Population Growth: 0.45%
- Unemployment Rate: 5.4%
Top reasons why Indianapolis, Indiana is one of the best real estate investments for 2018 include:
- High population growth.
- Very affordable housing.
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- Metro Population: 2M
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- Median Household Income: $54,000
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- Current Median Home Price: $130,000
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- Median Rent per Month: $1,180
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- 1-Year Job Growth Rate: 2.00%
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- 5-Year Equity Growth Rate: 9.00%
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- 5-Year Population Growth: 5.90%
- Unemployment Rate: 3.70%
Top reasons why Kansas City, Missouri is one of the best real estate investments for 2018 include:
- High rental demand.
- A large number of affordable residential real estate properties.
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- Metro Population: 2.1M
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- Median Household Income: $57,000
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- Current Median Home Price: $141,000
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- Median Rent per Month: $1,220
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- 1-Year Job Growth Rate: 1.30%
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- 5-Year Equity Growth Rate: 16.50%
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- 5-Year Population Growth: 4.50%
- Unemployment Rate: 4.40%
Top reasons why Detroit, Michigan is one of the best real estate investments for 2018 include:
- A relatively low cost of living.
- Affordable housing.
- A great real estate opportunity for cash flow today, and strong appreciation in the future.
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- Metro Population: 4.3M
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- Median Household Income: $54,000
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- Current Median Home Price: $166,000
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- Median Rent Per Month: $1,360
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- 1-Year Job Growth Rate: 1.80%
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- 5-Year Equity Growth Rate: 66.0%
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- 5-Year Population Growth: 0.20%
- Unemployment Rate: 5.6%
14. Atlanta, Georgia
Top reasons why Atlanta, Georgia is one of the best real estate investments for 2018 include:
- High demand for single family homes.
- Rapid population and job growth.
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- Metro Population: 5.8M
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- Median Household Income: $60,000
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- Current Median Home Price: $152,000
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- Median Rent per Month: $1,240
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- 1-Year Job Growth Rate: 2.90%
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- 5-Year Equity Growth Rate: 53.80%
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- 5-Year Population Growth: 9.20%
- Unemployment Rate: 5.00%
Related: Return on Investment: The Metrics Used in Real Estate Investing
Conclusion
Residential real estate investing is a rewarding business with no profit quota. Make sure to study the local housing market and your real estate prospects before you jump all the way in. Real estate investing is all about planning, researching, and doing your due diligence. Do not neglect real estate market analysis and investment property analysis as it is crucial to guarantee profitable returns and make money in real estate.
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