Investors who have been dealing in the real estate market for some time often find themselves connoisseurs in this field. They have invested in the real estate market and accumulated enough knowledge to be able to herd successful investments. They can recognize the attractions that will bring about positive cash flow properties from those that won’t do so efficiently.
High and positive cash flow properties need to possess certain physical characteristics. Selecting a neighborhood is one of the drivers of successful investments. Positive yielding cash flow properties are in neighborhoods with desirable schools and school systems, average rents, and good amenities. Low crime rate and traffic are other attributes that are conducive to positive cash flow properties. Aside from selecting the right neighborhood, having a parking and a backyard, along with low a rehabable property, will grant you to have one of the positive cash flow properties in the area.
Why do the aforementioned points contribute to positive cash flow? Well, first, let’s define what positive cash flow is. An investment property whose rent exceeds its costs of operating and owning is considered to be an example of positive cash flow properties. Being located in a desirable location equipped with amenities and other attractions will increase the value of your rent, further contributing to higher and more positive cash flow. That is if, of course, you minimize the costs associated. Thus, pick a rental property that won’t have a costly upkeep.
Having expressed the necessary steps that expert real estate investors take, we present the following cities that you should invest in today. Here we introduce you to four top states to bring about positive cash flow. You will come to find that the south has been attractive for many real estate investors. Read more to explore and find your destination.
The State of Texas has witnessed a boom in its real estate sector for many years today. Many of its cities have superseded others and made it to top lists for real estate investments and positive cash flow properties. Dallas is amongst the hottest housing markets in Texas. In fact, the city has been exhibiting a strong price appreciation and strong rents relative to property values. In addition, the excellent quality of life has created more demand for housing and real estate investment. Since the country is witnessing a trend towards mid-sized metropolitan cities, Dallas is seeing growth in the tech sector as it attracts young entrepreneurs into it.
Last year, the city had a 3.9% job growth, mostly in the tech sector. Average home prices, moreover, hover around $230,000. Although almost 4% higher than last year, average home prices remain to be 3% underpriced as compared to historical lows. Because the city is growing at a steady low rate, and since economists and real estate experts forecast an increase of 21% by 2022, we recommend that you invest in Dallas now if you are keen on cash flow properties.
Tampa and Orlando are among seven of Florida’s cities that have been rated the best for positive cash flow properties. Not only is Orlando a popular destination for tourists who come for the city’s varied amusement parks and attractions like Disney World, but for residents looking to relocate as well. In fact, the population has been growing at 7.3% over the past three years.
Citizens across the US come to choose to live in this city for its warm climate, amenities, and attractive job market. The city has become a home to many young entrepreneurs, retirees, baby boomers, and millennials. The increasing population along with the growth in the job market contributed to the city being the third best US market for real estate investments. The increasing job growth reflects into more demand for rental properties to accommodate for the rise of young entrepreneurs who demand them. If you are looking for a beautiful and not overly crowded city, one that offers many amenities, Orlando is your choice.
Austin showed an overall return on investment of 15.5% in 2016 . This high return can be primarily explained by above average appreciation growth over the past year. This could be one of the many reasons why PwC claimed Austin to be the hottest real estate market to invest in 2017. Another attribute advocating Austin real estate is the fact that the city has been only minimally affected by the global financial crisis. This has made Austin stable and comforting for real estate investors looking to invest for the longer term.
It is also important not to neglect the government’s efforts in developing and building more real estate properties to accommodate to the growing needs. These initiatives have driven up the real estate market and the desire to invest in cash flow properties. The prolific attractions and facilities will, moreover, increase your rent, yielding in more positive cash flow.
Yet another Texas city makes it to the top locations for positive cash flow properties. Houston is a home to over 2.2 million people. This vastness in population has further attracted and contributed to the growth seen in sectors such as international trade, sports, fashion, and above all, real estate. According to economists, the city is scoring new highs in employment and home prices. Moreover, the fact that the city has been diversifying its economy across import and export trading, healthcare, and hospitality has further attracted more citizens into it.
Many choose to invest in Houston real estate given the strength of its economy and its sectors such as healthcare. High paid professionals in the Science, Technology, Engineering and Math (STEM) now constitute a considerable share of the housing market. Baby boomers, also, choose Houston as their retirement destination for the excellent facilities and ease of living that Houston houses. Whether you are a millennial or a baby boomer, Houston sounds like a viable option to invest in today.
The aforementioned locations pose good opportunities for positive cash flow properties. Whether you lean more towards Austin, Houston, or Orlando, we recommend that you delve further. Assess your desired state and plan a trip to get a more hands-on experience of what we have presented. Remember, it takes thorough research to generate big gains.
For more information about cash flow properties, visit Mashvisor knowledge center today.