The US real estate market is open to any investor. You can be a teacher or a chemist and find yourself diving into real estate investing. With the flexibility that’s offered to first-time real estate investors and property buyers, it’s only befitting for anyone to buy investment properties to elevate his/her financial situation. Accordingly, if you’re on the lookout for the next best investment opportunity, you’ll make use of the best places to own rental property in the US residential real estate market.
To be exact, when it comes to real estate investing, there is no right or wrong. One investment strategy can be ideal for a real estate investor but not for another. After all, it’s all about finding what works best for you and your lifestyle. Most importantly, it does not matter if you find the best places to own rental property if rental properties aren’t your favorite choice of real estate investment.
What are the best places to own rental property in the US real estate market?
Without further ado, we’ve utilized Mashvisor’s investment property calculator’s data to summarize the best locations for investment. Here, you’ll find a useful list of places for the best cash flow and return on investment properties available in 2018:
Atlanta, GA
It doesn’t take a real estate expert to tell you that Atlanta’s real estate market is thriving. It offers a great return on investment. Without a doubt, many real estate investors are taking the bold step and choosing it to be among the best places to own rental property. That being said, it doesn’t matter how lucrative the Atlanta real estate market is, you will need to run a comparative market analysis to make sure of the quality and fair market value of any potential investment property. With that in mind, you can make use of Mashvisor’s investment property calculator to conduct a full-on real estate market analysis. Click here to make use of the 14-day free trial with Mashvisor.
To clarify why Atlanta falls among the best places to own rental property, let’s look at some of the real estate data provided by Mashvisor:
- Airbnb rental income: $1,882
- Traditional rental income: $1,793
- Median property price: $536,654
- Average Airbnb cap rate: 2.4%
- Average traditional cap rate: 1.82%
As can be seen, buying an investment property in the Atlanta real estate market sounds like an awesome idea! If you’re looking for an investment property in Atlanta, whether a single-family rental property or a multi-family investment property, read this blog post to learn about it: Atlanta Real Estate Market 2018: The Trends Investors Need to Know About.
Seattle, WA
Seattle proudly sits among the best places to own rental property in the real estate market. Overall, the real estate prices are not getting cheaper and more expensive properties are pouring onto the fueled investment market. Airbnb rental properties are the winner with Seattle real estate; this investment strategy is generating a significant amount of rental income for Airbnb real estate investors. Furthermore, areas like Portage Bay and Waterfront are key players in Seattle’s short-term rental investment market. To better grasp the vitality of Seattle’s real estate market, here are some of Mashvisor’s stats for the Seattle real estate market 2018:
- Airbnb rental income: $3,431
- Traditional rental income: $2,324
- Median property price: $860,339
- Average Airbnb cap rate: 1.83%
As shown above, many residents in the Seattle area are going for Airbnb rentals to make use of the tourist appeal of their city. If you’re contemplating investment properties in Seattle, read this blog post: Seattle Real Estate: The Best Investment Properties for 2018.
Killington, VT
Killington has the largest ski area in the East Coast. Vermont real estate is nothing to take lightly, as Killington takes its spot among the best places to buy a rental property. Be that as it may, it’s great for an investment property that’s intended for the use of a long-term rental. However, the ski season makes it profitable as a short-term rental. Accordingly, to understand the dilemma of real estate investors in Killington real estate, check out these stats:
- Airbnb rental income: $1,092
- Traditional rental income: $2,470
- Median property price: $293,109
- Average traditional cap rate: 5.24%
With a 5.24% capitalization rate, Killington real estate makes for a great traditional rental. For the real estate investors looking for affordable property prices and a substantial rental income, look no further. To find investment properties in Killington, read this blog post: Property Finder Tool – Finding Real Estate Investment Properties in 2018.
Navarre, FL
Navarre is a census-designated place in northwest Florida. Similarly, with Florida real estate known for affordability and high return on investment ratios, it makes sense that Navarre is among the best places to own rental property. Additionally, Navarre is known for its touristic attractions and beaches. As a result, real estate property in this location is suitable for Airbnb rental properties more so than traditional rentals. Check out these stats to grasp the investment identity of Navarre:
- Airbnb rental income: $2,824
- Traditional rental income: $1,253
- Median property price: $329,289
- Average Airbnb cap rate: 4.96%
- Average traditional cap rate: 1.12%
Napa, CA
On the west coast of this great land, north of San Francisco, lies the infamous city of Napa. As is well-known about it, wineries that stretch your vacation for days on end have been one of the reasons that Napa real estate thrived. Naturally, the real estate investment sector in it thrived along with the grape vines. Additionally, the Napa Valley is infamous for wine tasting vacations, making it very much suitable for rental property investments. Better yet, it is among the best places to own rental property. Here are some stats that prove that theory:
- Airbnb rental income: $6,627
- Traditional rental income: $2,678
- Median property price: $1,462,860
- Average Airbnb cap rate: 3.68%
Accordingly, factoring the costs of running an Airbnb rental property, you will come out ahead. However, you must study the location of the property carefully to ensure it’s a competitive one.
To clarify, these cities are not the only best places to own rental property in the US real estate market. They topped the list with a high return on investment as the local housing market offers quality income-generating assets with reasonable price tags. Lastly, for those who are hesitant to start investing in real estate, start by investing in single-family rental properties or multi-family investment properties to get a head start in the real estate market. Just keep in mind that even the most successful real estate investors had to start somewhere.
If you have any more insights on the best places to own rental property in 2018, share them in the comments section.
