The West Coast is home to the states of Washington, Oregon, and California, three states with some of the top places for real estate investing in the country. Some of these cities have been among the top places for investment properties for quite some time. Others are just getting things started. No matter the case, a real estate investor would be wise to consider investing in these West Coast cities. The best cities to buy rental property on the West Coast are Seattle, WA; San Diego, CA; Sacramento, CA; Las Vegas, NV; Portland, OR; Anaheim, CA; and San Francisco, CA.
1.) Seattle, WA
- Median Property Price: $614,035
- Traditional Rental Income: $2,161
- Airbnb Rental Income: $2,228
- Traditional Cash on Cash Return: 2.15%
- Airbnb Cash on Cash Return: 3.05%
- Traditional Cap Rate: 2.15%
- Airbnb Cap Rate: 3.05%
Seattle has been one of the best cities to buy rental property for years now. This trend isn’t slowing down anytime soon, for both traditional and Airbnb real estate investments. Seattle’s high-tech driven economy and low unemployment rate have fueled traditional real estate investing in the city. Its job growth over the next ten years is estimated at 11% more than the national average. Seattle traditional investment properties will have no shortage of tenants for years to come.
Seattle is also a top location for Airbnb real estate investing. Whether it’s because of renowned tourist destinations like the Space Needle landmark or its cool coffee culture, Seattle is among the best cities to buy rental property for Airbnb.
2.) San Diego, CA
- Median Property Price: $677,962
- Traditional Rental Income: $2,568
- Airbnb Rental Income: $2,237
- Traditional Cash on Cash Return: 2.31%
- Airbnb Cash on Cash Return: 2.21%
- Traditional Cap Rate: 2.31%
- Airbnb Cap Rate: 2.21%
Moving south, we land at the next location on our best cities to buy rental property list, San Diego. As is glaringly obvious from the data above, obtained through Mashvisor’s real estate market analysis, San Diego offers high rental income for its real estate investments. Its sturdy economy in trade, manufacturing, and research makes it one of the top places on the West Coast to make money. San Diego is a top worldwide and national tourist destination, making Airbnb real estate investments a profitable rental strategy.
3.) Sacramento, CA
- Median Property Price: $400,060
- Traditional Rental Income: $1,368
- Airbnb Rental Income: $1,622
- Traditional Cash on Cash Return: 1.08%
- Airbnb Cash on Cash Return: 1.87%
- Traditional Cap Rate: 1.08%
- Airbnb Cap Rate: 1.87%
Sacramento real estate investments are not the least expensive ones on this list, that city will be covered next. Still, the City of Trees is among the top in terms of house affordability. High appreciation is also a huge plus for Sacramento traditional real estate investing. Appreciation in Sac Town is above the national average. Sacramento isn’t among the best cities to buy rental property on the West Coast only for its traditional real estate investments. Its Airbnb rental market is top notch! As a matter of fact, Mashvisor’s investment property calculator and real estate market analysis highlight that Airbnb is the optimal strategy for investment properties in Sacramento.
4.) Las Vegas, NV
- Median Property Price: $293,035
- Traditional Rental Income: $1,446
- Airbnb Rental Income: $2,266
- Traditional Cash on Cash Return: 2.85%
- Airbnb Cash on Cash Return: 6.53%
- Traditional Cap Rate: 2.85%
- Airbnb Cap Rate: 6.53%
Okay, Las Vegas being on the West Coast is debatable. What there is no debate about, however, is that it is among the best cities to buy rental property. The two biggest factors in Vegas’s success as a rental market are affordability and renowned tourism. Its affordable investment properties are a relic of the most recent housing bubble. LV’s market has recovered, but it is undervalued at an amazing 40%. Now is the time for a real estate investor to buy in Vegas!
5.) Portland, OR
- Median Property Price: $497,031
- Traditional Rental Income: $1,988
- Airbnb Rental Income: $1,663
- Traditional Cash on Cash Return: 1.72%
- Airbnb Cash on Cash Return: 2%
- Traditional Cap Rate: 1.72%
- Airbnb Cap Rate: 2%
A traditional real estate investor will find Portland as one of the best cities to buy rental properties. There are many reasons why. Appreciation of investment properties is strong in the city. It is one of the top places to start families in the country, according to the Business Insider. Add in the fact that Portland is one of the safest cities out there, and it’s easy to see why traditional real estate is the optimal Portland investing strategy. This doesn’t mean a real estate investor should avoid Airbnb real estate investing in Portland. While traditional investing is better for the average Portland property, Airbnb is still a lucrative investing option.
6.) Anaheim, CA
- Median Property Price: $534,093
- Traditional Rental Income: $2,310
- Airbnb Rental Income: $3,995
- Traditional Cash on Cash Return: 2.92%
- Airbnb Cash on Cash Return: 6.76%
- Traditional Cap Rate: 2.92%
- Airbnb Cap Rate: 6.76%
Anaheim may be the smallest city on our list, but it is one of the biggest in terms of Airbnb ROI. The city is one of the best cities to buy rental property in terms of both Airbnb cap rate and cash on cash return. Mashvisor’s real estate market analysis shows that Anaheim is a lucrative city for Airbnb overall, especially with its high rental income. Airbnb isn’t Anaheim only specialty. The city is one of the best cities to buy rental property based on price to rent ratio too.
7.) San Francisco, CA
- Median Property Price: $1,380,384
- Traditional Rental Income: $4,705
- Airbnb Rental Income: $3,112
- Traditional Cash on Cash Return: 2.15%
- Airbnb Cash on Cash Return: 0.72%
- Traditional Cap Rate: 2.15%
- Airbnb Cap Rate: 0.72%
San Francisco being on a list of the best cities to buy rental property seems like a head-scratcher. How can San Fran be a great city to buy investment properties if its housing market is very overvalued? The answer is its high rental income. Investing in SF’s real estate can be difficult, no doubt, but it still is possible for real estate investors on a high budget. Use Mashvisor’s investment property calculator and its real estate market analysis to pinpoint more affordable areas and properties. Also be sure to read the recommended blog below for more tips on how to purchase property in SF.
To find more of the best cities to buy rental property, start your trial with Mashvisor and use its real estate market analysis and its investment property analysis!