If you thought you couldn’t find affordable neighborhoods in an expensive city to make low-cost investments, think again.
This blog is for those of you trying to turn a profit from buying an investment property in the most expensive cities. When we say expensive, we mean it. We’re talking Los Angeles, San Francisco, Seattle, New York, and the like.
These major metropolitan areas are infamous for their astronomical high costs of living. House prices in these bigger cities are well above the national average, so how are we saying you can find affordable investment properties there? Buying a property in an expensive city doesn’t have to cut you back millions. Finding real estate deals that suit your investment portfolio is possible. You just need to know where to look. If you’re looking for affordable rental properties, but can’t seem to find any in your city, here’s your saving grace.
Related: Aspen Real Estate: Are the High Prices Worth It?
Invest in real estate for high returns and below city-level average real estate prices in these neighborhoods.
Most Affordable Neighborhoods in Expensive US Cities
The following neighborhoods are considered the most affordable places for real estate investment when compared to their city’s real estate prices. These neighborhoods have houses for sale at lower prices, making it easier for investors to find an investment property that won’t break the bank.
Using historical data and predictive analytics, Mashvisor’s investment property calculator was able to provide real estate data on high-performing affordable neighborhoods in the most expensive cities.
SAN FRANCISCO, CA
Here are the most affordable neighborhoods in San Francisco with good returns.
Mount Davidson Manor
- Median Property Price: $548,990
- Price per Square Foot: $333
- Average Days on Market: 52
- Price to Rent Ratio: 8
- Monthly Traditional Rental Income: $5,390
- Traditional Cash on Cash Return: 6%
- Monthly Airbnb Rental Income: $5,453
- Airbnb Cash on Cash Return: 5%
- Airbnb Occupancy Rate: 71%
Civic Center
- Median Property Price: $499,000
- Average Days on Market: 14
- Price to Rent Ratio: 13
- Monthly Traditional Rental Income: $3,273
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $4,665
- Airbnb Cash on Cash Return: 4%
- Airbnb Occupancy Rate: 87%
The median property price on the city level in San Francisco is $1,564,111.
To start searching for properties in the most affordable neighborhoods in San Francisco, click here.
LOS ANGELES, CA
Here are the most affordable neighborhoods in Los Angeles with good returns.
Southeast Los Angeles
- Median Property Price: $491,241
- Price per Square Foot: $352
- Average Days on Market: 98
- Price to Rent Ratio: 19
- Monthly Traditional Rental Income: $2,117
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $2,535
- Airbnb Cash on Cash Return: 3%
- Airbnb Occupancy Rate: 60%
Central City
- Median Property Price: $590,184
- Price per Square Foot: $302
- Average Days on Market: 98
- Price to Rent Ratio: 19
- Monthly Traditional Rental Income: $2,639
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $2,662
- Airbnb Cash on Cash Return: 3%
- Airbnb Occupancy Rate: 64%
The median property price on the city level in Los Angeles is $966,264.
To start searching for properties in the most affordable neighborhoods in Los Angeles, click here.
SEATTLE, WA
Here are the most affordable neighborhoods in Seattle with good returns.
South Park
- Median Property Price: $433,333
- Price per Square Foot: $215
- Average Days on Market: 48
- Price to Rent Ratio: 20
- Monthly Traditional Rental Income: $1,824
- Traditional Cash on Cash Return: 1%
- Monthly Airbnb Rental Income: $3,921
- Airbnb Cash on Cash Return: 5%
- Airbnb Occupancy Rate: 73%
Fauntleroy
- Median Property Price: $537,475
- Price per Square Foot: $362
- Average Days on Market: 80
- Price to Rent Ratio: 20
- Monthly Traditional Rental Income: $2,205
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $4,151
- Airbnb Cash on Cash Return: 5%
- Airbnb Occupancy Rate: 63%
The median property price on the city level in Seattle is $830,702.
To start searching for properties in the most affordable neighborhoods in Seattle, click here.
NEW YORK, NY
Here are the most affordable neighborhoods in New York City with good returns.
Arverne
- Median Property Price: $542,856
- Price per Square Foot: $236
- Average Days on Market: 92
- Price to Rent Ratio: 10
- Monthly Traditional Rental Income: $4,374
- Traditional Cash on Cash Return: 5%
- Monthly Airbnb Rental Income: $3,759
- Airbnb Cash on Cash Return: 8%
- Airbnb Occupancy Rate: 54%
Melrose
- Median Property Price: $430,655
- Price per Square Foot: $276
- Average Days on Market: 73
- Price to Rent Ratio: 19
- Monthly Traditional Rental Income: $1,850
- Traditional Cash on Cash Return: 3%
- Monthly Airbnb Rental Income: $2,215
- Airbnb Cash on Cash Return: 4%
- Airbnb Occupancy Rate: 65%
Clifton
- Median Property Price: $415,865
- Price per Square Foot: $390
- Average Days on Market: 134
- Price to Rent Ratio: 17
- Monthly Traditional Rental Income: $2,908
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $2,951
- Airbnb Cash on Cash Return: 3%
- Airbnb Occupancy Rate: 60%
The median property price on the city level in New York is $1,113,268.
To start searching for properties in the most affordable neighborhoods in New York City, click here.
BOULDER, CO
Here are the most affordable neighborhoods in Boulder with good returns.
San Juan Del Centro
- Median Property Price: $370,250
- Price per Square Foot: $364
- Average Days on Market: 69
- Price to Rent Ratio: 14
- Monthly Traditional Rental Income: $2,170
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $5,668
- Airbnb Cash on Cash Return: 9%
- Airbnb Occupancy Rate: 75%
Colorado University
- Median Property Price: $327,500
- Price per Square Foot: $556
- Average Days on Market: 90
- Price to Rent Ratio: 17
- Monthly Traditional Rental Income: $1,634
- Traditional Cash on Cash Return: 1%
- Monthly Airbnb Rental Income: $3,293
- Airbnb Cash on Cash Return: 4%
- Airbnb Occupancy Rate: 73%
The median property price on the city level in Boulder is $1,145,714.
To start searching for properties in the most affordable neighborhoods in Boulder, click here.
BOSTON, MA
Here are the most affordable neighborhoods in Boston with good returns.
Mattapan
- Median Property Price: $394,633
- Price per Square Foot: $274
- Average Days on Market: 52
- Price to Rent Ratio: 16
- Monthly Traditional Rental Income: $2,063
- Traditional Cash on Cash Return: 2%
- Monthly Airbnb Rental Income: $2,587
- Airbnb Cash on Cash Return: 3%
- Airbnb Occupancy Rate: 54%
Roxbury
- Median Property Price: $499,900
- Price per Square Foot: $333
- Average Days on Market: 146
- Price to Rent Ratio: 18
- Monthly Traditional Rental Income: $2,332
- Traditional Cash on Cash Return: 1%
- Monthly Airbnb Rental Income: $6,234
- Airbnb Cash on Cash Return: 8%
- Airbnb Occupancy Rate: 70%
The median property price on the city level in Boston is $847,589.
To start searching for properties in the most affordable neighborhoods in Boston, click here.
Related: Top 7 Cheapest Cities for Buy-and-Hold Investment Properties
That’s the end of our list for the most affordable neighborhoods to buy properties in the most expensive cities. These neighborhoods are definitely some of the best places to invest in real estate for affordable properties. Note that if you choose to invest in Airbnb rentals, check on any short-term regulations set in your city of choice first.
To take advantage of Mashvisor’s tools and find an affordable property anywhere in the US, start out your 14-day free trial now.