The Best Cities to Buy Rental Property on the East Coast

The East Coast hosts many of the best cities to buy rental property in the US. Real estate investing in any of these top places is a great way to make money for any real estate investor. Once you’ve settled for one of these cities, be sure to use Mashvisor’s investment property calculator to facilitate your research. The investment property calculator will provide a detailed real estate market analysis and investment property analysis. So, without further ado, the best cities to buy rental property on the East Coast are Orlando, FL; Tampa-St. Petersburg, FL; Baltimore, MD; West Palm Beach, FL; Atlanta, GA; Jacksonville, FL; and Charlotte, NC.

Orlando, FL

  • Median Property Price: $296,029
  • Traditional Rental Income: $1,632
  • Airbnb Rental Income: $771
  • Traditional Cash on Cash Return: 2.43%
  • Airbnb Cash on Cash Return: 2.12%
  • Traditional Cap Rate: 2.43%
  • Airbnb Cap Rate: 2.12%

Orlando has continued to be a real estate investing powerhouse throughout recent years. It’s not hard to see why. Its population and economic excellence have propelled traditional real estate investments in the location. Also, its median investment property prices have remained affordable throughout the year, and are currently below the national average. Orlando real estate investing is also benefiting from the city’s top-notch tourism industry. After all, the city is often called the Theme Park Capital of the World.

Although Orlando’s average Airbnb rental income is $771, it is still a spectacular city for Airbnb real estate investments. The average Airbnb rental income, based on Mashvisor’s real estate market analysis, is reduced due to two areas, Florida Center and College Park, that have low Airbnb rental income. All the other top places taken into the analysis have an Airbnb rental income of over $1,000 at the very least.

Tampa-St. Petersburg, FL

Tampa:

  • Median Property Price: $313,551
  • Traditional Rental Income: $1,431
  • Airbnb Rental Income: $1,744
  • Traditional Cash on Cash Return: 2.06%
  • Airbnb Cash on Cash Return: 4.74%
  • Traditional Cap Rate: 2.06%
  • Airbnb Cap Rate: 4.74%

St. Petersburg:

  • Median Property Price: $372,014
  • Traditional Rental Income: $1,484
  • Airbnb Rental Income: $1,512
  • Traditional Cash on Cash Return: 2.18%
  • Airbnb Cash on Cash Return: 2.7%
  • Traditional Cap Rate: 2.18%
  • Airbnb Cap Rate: 2.7%

The Tampa-St. Petersburg area comes right after Orlando, both on this list of the best cities to buy rental property and as the top places for Florida real estate investments. The reasons are much of the same: great economy, raising population, and attractive tourism. Both Tampa and St. Petersburg offer high rental income for traditional and Airbnb investment properties. The area’s investment property prices hover around the national average. Unfortunately, these prices are expected to increase heading into next year. Therefore, a real estate investor should seriously contemplate investing in these two of the best cities to buy rental property right now.

Related: Orlando and Tampa Are Key to Invest in Florida Real Estate

Baltimore, MD

  • Median Property Price: $253,843
  • Traditional Rental Income: $1,666
  • Airbnb Rental Income: $1,972
  • Traditional Cash on Cash Return: 5%
  • Airbnb Cash on Cash Return: 7.01%
  • Traditional Cap Rate: 5%
  • Airbnb Cap Rate: 7.01%

Baltimore is obviously not the most well-known of these best cities to buy rental property on the East Coast. Still, the city is a great choice to make money through investment properties. A prime reason why is its affordability. At around $250,000 for the median price of real estate investments, Baltimore is among the top places in the country in terms of affordability. Its high Airbnb rental income and ROI should also motivate investors to invest in the location.

West Palm Beach, FL

  • Median Property Price: $336,954
  • Traditional Rental Income: $2,189
  • Airbnb Rental Income: $1,870
  • Traditional Cash on Cash Return: 2.6%
  • Airbnb Cash on Cash Return: 1.76%
  • Traditional Cap Rate: 2.6%
  • Airbnb Cap Rate: 1.76%

Florida continues to dominate the list of best cities to buy rental property on the East Coast. Similar to the other Floridan cities on this list, West Palm Beach is high for both Airbnb and traditional rental income. The average cap rate and cash on cash return for investment properties may appear to be low for West Palm Beach, but remember that they are only averages. The CoC return and cap rate of an actual investment property in the city will most certainly be higher.

Atlanta, GA

  • Median Property Price: $399,867
  • Traditional Rental Income: $2,227
  • Airbnb Rental Income: $1,318
  • Traditional Cash on Cash Return: 3.89%
  • Airbnb Cash on Cash Return: 2.97%
  • Traditional Cap Rate: 3.89%
  • Airbnb Cap Rate: 2.97%

ATL is undoubtedly among the top places for East Coast real estate investing. And unlike most of the cities on this list, traditional investment properties are superior to Airbnb, on average, for an ATL real estate investor. Still, you can’t go wrong with an Airbnb property in Atlanta. After all, the city is among the top 10 tourist destinations in the US. Atlanta is among the best cities to buy rental property for traditional investments, as it’s a top 5 location Americans are moving to. Add being a cultural hub and having headquarters to many companies to the mix, and it’s easy to see why ATL is among the best cities to buy rental property.

Related: Why You Should Invest in the Atlanta Real Estate Market Now

Jacksonville, FL

  • Median Property Price: $171,613
  • Traditional Rental Income: $910
  • Airbnb Rental Income: $956
  • Traditional Cash on Cash Return: 2.74%
  • Airbnb Cash on Cash Return: 3.34%
  • Traditional Cap Rate: 2.74%
  • Airbnb Cap Rate: 3.34%

Jacksonville is the most affordable city on our list of the best cities to buy rental property. It is a top location in Florida itself for affordability and profitability. Jacksonville’s job market is also improving, attracting more people to the city and opening up more real estate investing opportunities. Appreciation is high in the city, making long-term strategies an excellent strategy to make money and capital gains.

Charlotte, NC

  • Median Property Price: $395,593
  • Traditional Rental Income: $1,753
  • Airbnb Rental Income: $1,460
  • Traditional Cash on Cash Return: 2.32%
  • Airbnb Cash on Cash Return: 2.36%
  • Traditional Cap Rate: 2.32%
  • Airbnb Cap Rate: 2.36%

Last, but definitely not least, on our list of the best cities to buy rental property is Charlotte. With many universities, a sturdy job market, and a growing population, the Queen City is among the top places to invest in real estate. Investment properties may be on the more expensive side of the list, but a real estate investor will likely find much success in Charlotte.

Related: What You Need to Know About Charlotte Real Estate

If you’re looking to make money on the East Coast, these cities are where to go. For more on the best cities to buy rental property, a real estate market analysis, and an investment property analysis, head over to Mashvisor.

Start Your Investment Property Search!
comments powered by Disqus