Another year is coming to an end and a lot of real estate investors are wondering what are the best places for buying investment property in 2023.
It is something that has been on the mind of a lot of real estate investors who are always on the lookout for the most profitable investment opportunities. However, it’s not always that easy to find the best investment property places without putting in the work. And a lot of it has to do with keeping yourself updated with actual market conditions.
Table of Contents
- 20 Best Places for Buying Investment Property for Long Term Rentals in 2023
- 20 Best Places for Buying Investment Property for Vacation Rentals in 2023
- How to Find the Best Places for Buying Investment Property in 2023
As a real estate investor, performing due diligence is a surefire way of getting optimal returns on your investment. You need to do hours of research and analysis to help you with your projections and calculations. The good news is that you can make things easier by following Mashvisor’s blog. We regularly give you useful investment information and advice, especially on the best locations for investment property.
That being said, this article will show you which places are worth checking out for both long term and short term rental properties in 2023. More than just showing you excellent investment locations, we will also give you a few tips on how to stay ahead of the real estate investing game.
So if you’re in the market looking for the best place to buy rental property, keep reading.
Related: How to Find Profitable Rental Investment Properties for Sale
20 Best Places for Buying Investment Property for Long Term Rentals in 2023
Investment properties are a popular way to make money. If you’re looking to buy an investment property in the US, here are 20 of the best places for buying investment properties for long term rentals, based on Mashvisor’s December 2022 location report.
We selected the cities based on the following criteria:
- Each market has a median property price below $1,000,000
- Each market has no less than 100 active listings
- Each market has at least $2,000 in monthly rental income
- Each market has a cash on cash return of 2.00% or higher
- Each market has a price to rent ratio of 20 and above
The following list includes 20 cities and towns that rank high on all of the criteria above, which should give you some ideas about where to start looking for your next investment property. We ranked them according to the ones with the highest cash on cash returns down to the lowest.
1. Vero Beach, FL
- Median Property Price: $734,654
- Average Price per Square Foot: $339
- Days on Market: 94
- Number of Long Term Rental Listings: 658
- Monthly Long Term Rental Income: $2,592
- Long Term Rental Cash on Cash Return: 4.30%
- Long Term Rental Cap Rate: 4.36%
- Price to Rent Ratio: 24
- Walk Score: 78
Search for profitable long term rental properties in Vero Beach, FL.
2. Fountain Hills, AZ
- Median Property Price: $868,372
- Average Price per Square Foot: $357
- Days on Market: 92
- Number of Long Term Rental Listings: 122
- Monthly Long Term Rental Income: $3,600
- Long Term Rental Cash on Cash Return: 4.16%
- Long Term Rental Cap Rate: 4.20%
- Price to Rent Ratio: 20
- Walk Score: 39
3. Naples, FL
- Median Property Price: $992,412
- Average Price per Square Foot: $529
- Days on Market: 88
- Number of Long Term Rental Listings: 1,660
- Monthly Long Term Rental Income: $3,986
- Long Term Rental Cash on Cash Return: 3.62%
- Long Term Rental Cap Rate: 3.66%
- Price to Rent Ratio: 21
- Walk Score: 29
4. North Miami, FL
- Median Property Price: $771,038
- Average Price per Square Foot: $421
- Days on Market: 60
- Number of Long Term Rental Listings: 269
- Monthly Long Term Rental Income: $3,155
- Long Term Rental Cash on Cash Return: 3.43%
- Long Term Rental Cap Rate: 3.47%
- Price to Rent Ratio: 20
- Walk Score: 52
5. Lantana, FL
- Median Property Price: $903,306
- Average Price per Square Foot: $439
- Days on Market: 69
- Number of Long Term Rental Listings: 112
- Monthly Long Term Rental Income: $2,672
- Long Term Rental Cash on Cash Return: 3.35%
- Long Term Rental Cap Rate: 3.41%
- Price to Rent Ratio: 28
- Walk Score: 65
6. Tampa, FL
- Median Property Price: $594,095
- Average Price per Square Foot: $411
- Days on Market: 95
- Number of Long Term Rental Listings: 1,665
- Monthly Long Term Rental Income: $2,444
- Long Term Rental Cash on Cash Return: 3.34%
- Long Term Rental Cap Rate: 3.39%
- Price to Rent Ratio: 20
- Walk Score: 46
7. Punta Gorda, FL
- Median Property Price: $647,447
- Average Price per Square Foot: $316
- Days on Market: 107
- Number of Long Term Rental Listings: 370
- Monthly Long Term Rental Income: $2,713
- Long Term Rental Cash on Cash Return: 3.29%
- Long Term Rental Cap Rate: 3.33%
- Price to Rent Ratio: 20
- Walk Score: 14
8. Carmel, IN
- Median Property Price: $513,565
- Average Price per Square Foot: $255
- Days on Market: 70
- Number of Long Term Rental Listings: 131
- Monthly Long Term Rental Income: $2,149
- Long Term Rental Cash on Cash Return: 3.28%
- Long Term Rental Cap Rate: 3.32%
- Price to Rent Ratio: 20
- Walk Score: 49
9. Melbourne, FL
- Median Property Price: $481,727
- Average Price per Square Foot: $277
- Days on Market: 77
- Number of Long Term Rental Listings: 617
- Monthly Long Term Rental Income: $2,037
- Long Term Rental Cash on Cash Return: 3.26%
- Long Term Rental Cap Rate: 3.31%
- Price to Rent Ratio: 20
- Walk Score: 73
10. Fort Myers, FL
- Median Property Price: $577,039
- Average Price per Square Foot: $309
- Days on Market: 97
- Number of Long Term Rental Listings: 1,398
- Monthly Long Term Rental Income: $2,317
- Long Term Rental Cash on Cash Return: 3.22%
- Long Term Rental Cap Rate: 3.27%
- Price to Rent Ratio: 21
- Walk Score: 26
11. Cape Coral, FL
- Median Property Price: $555,504
- Average Price per Square Foot: $297
- Days on Market: 106
- Number of Long Term Rental Listings: 1,213
- Monthly Long Term Rental Income: $2,188
- Long Term Rental Cash on Cash Return: 3.21%
- Long Term Rental Cap Rate: 3.25%
- Price to Rent Ratio: 21
- Walk Score: 77
12. Palm Springs, CA
- Median Property Price: $957,369
- Average Price per Square Foot: $553
- Days on Market: 69
- Number of Long Term Rental Listings: 212
- Monthly Long Term Rental Income: $3,699
- Long Term Rental Cash on Cash Return: 3.14%
- Long Term Rental Cap Rate: 3.17%
- Price to Rent Ratio: 22
- Walk Score: 59
13. Pompano Beach, FL
- Median Property Price: $729,416
- Average Price per Square Foot: $479
- Days on Market: 72
- Number of Long Term Rental Listings: 927
- Monthly Long Term Rental Income: $2,879
- Long Term Rental Cash on Cash Return: 3.13%
- Long Term Rental Cap Rate: 3.18%
- Price to Rent Ratio: 21
- Walk Score: 39
14. West Palm Beach, FL
- Median Property Price: $712,559
- Average Price per Square Foot: $460
- Days on Market: 79
- Number of Long Term Rental Listings: 1,667
- Monthly Long Term Rental Income: $2,828
- Long Term Rental Cash on Cash Return: 3.13%
- Long Term Rental Cap Rate: 3.19%
- Price to Rent Ratio: 21
- Walk Score: 46
15. Tempe, AZ
- Median Property Price: $541,521
- Average Price per Square Foot: $321
- Days on Market: 11
- Number of Long Term Rental Listings: 333
- Monthly Long Term Rental Income: $2,287
- Long Term Rental Cash on Cash Return: 3.09%
- Long Term Rental Cap Rate: 3.13%
- Price to Rent Ratio: 20
- Walk Score: 52
16. Atlanta, GA
- Median Property Price: $570,788
- Average Price per Square Foot: $1,772
- Days on Market: 86
- Number of Long Term Rental Listings: 2,304
- Monthly Long Term Rental Income: $2,294
- Long Term Rental Cash on Cash Return: 3.08%
- Long Term Rental Cap Rate: 3.13%
- Price to Rent Ratio: 21
- Walk Score: 43
17. Williamsburg, VA
- Median Property Price: $566,132
- Average Price per Square Foot: $622
- Days on Market: 72
- Number of Long Term Rental Listings: 182
- Monthly Long Term Rental Income: $2,100
- Long Term Rental Cash on Cash Return: 3.07%
- Long Term Rental Cap Rate: 3.12%
- Price to Rent Ratio: 22
- Walk Score: 81
18. Peoria, AZ
- Median Property Price: $536,436
- Average Price per Square Foot: $275
- Days on Market: 16
- Number of Long Term Rental Listings: 329
- Monthly Long Term Rental Income: $2,163
- Long Term Rental Cash on Cash Return: 3.04%
- Long Term Rental Cap Rate: 3.07%
- Price to Rent Ratio: 21
- Walk Score: 62
19. Redlands, CA
- Median Property Price: $671,507
- Average Price per Square Foot: $379
- Days on Market: 65
- Number of Long Term Rental Listings: 157
- Monthly Long Term Rental Income: $2,843
- Long Term Rental Cash on Cash Return: 3.03%
- Long Term Rental Cap Rate: 3.06%
- Price to Rent Ratio: 20
- Walk Score: 85
20. Buckeye, AZ
- Median Property Price: $494,444
- Average Price per Square Foot: $240
- Days on Market: 82
- Number of Long Term Rental Listings: 197
- Monthly Long Term Rental Income: $2,087
- Long Term Rental Cash on Cash Return: 3.01%
- Long Term Rental Cap Rate: 3.05%
- Price to Rent Ratio: 20
- Walk Score: 72
It no longer comes as a surprise that most of the places listed above are from Florida. The Sunshine State is well-known as one of America’s top long term rental markets. It is a great place to live for people from all walks of life—young professionals, couples, families, and the elderly.
However, there are other great places for long term rental property investing. If you’re looking to buy rental properties for sale to start a rental property business, a little due diligence can go a long way.
Start looking for the most profitable investment properties in any area of your choice with Mashvisor today.
20 Best Places for Buying Investment Property for Vacation Rentals in 2023
If you’re in the market looking for vacation rental properties to buy, check out the following locations. The places included in the list below, like the previous one, were chosen based on the following criteria:
- Each market has a median property price that doesn’t exceed $1,000,000
- Each market has a minimum of 100 active listings
- Each market has a monthly rental income of at least $2,000
- Each market has a cash on cash return of no less than 2.00%
- Each market has a 50% short term rental occupancy rate or higher
Related: What Is a Good Cash on Cash Return?
And just like the location for long term rentals, the following cities are ranked based on cash on cash return, from the highest to the lowest, using data from Mashvisor’s December 2022 location report.
1. Harpers Ferry, WV
- Median Property Price: $399,075
- Average Price per Square Foot: $265
- Days on Market: 59
- Number of Vacation Rental Listings: 107
- Monthly Vacation Rental Income: $4,315
- Vacation Rental Cash on Cash Return: 7.77%
- Vacation Rental Cap Rate: 7.88%
- Vacation Rental Daily Rate: $220
- Vacation Rental Occupancy Rate: 57%
- Walk Score: 0
Search for profitable short term rental properties in Harpers Ferry, WV.
2. Schiller Park, IL
- Median Property Price: $284,199
- Average Price per Square Foot: $221
- Days on Market: 29
- Number of Vacation Rental Listings: 132
- Monthly Vacation Rental Income: $3,643
- Vacation Rental Cash on Cash Return: 7.64%
- Vacation Rental Cap Rate: 7.79%
- Vacation Rental Daily Rate: $165
- Vacation Rental Occupancy Rate: 57%
- Walk Score: 71
3. Columbia Heights, MN
- Median Property Price: $255,662
- Average Price per Square Foot: $139
- Days on Market: 49
- Number of Vacation Rental Listings: 327
- Monthly Vacation Rental Income: $3,175
- Vacation Rental Cash on Cash Return: 7.52%
- Vacation Rental Cap Rate: 7.68%
- Vacation Rental Daily Rate: $158
- Vacation Rental Occupancy Rate: 57%
- Walk Score: 82
4. Harvey, LA
- Median Property Price: $252,088
- Average Price per Square Foot: $160
- Days on Market: 80
- Number of Vacation Rental Listings: 799
- Monthly Vacation Rental Income: $2,868
- Vacation Rental Cash on Cash Return: 7.37%
- Vacation Rental Cap Rate: 7.53%
- Vacation Rental Daily Rate: $181
- Vacation Rental Occupancy Rate: 57%
- Walk Score: 61
5. Northlake, IL
- Median Property Price: $321,543
- Average Price per Square Foot: $204
- Days on Market: 59
- Number of Vacation Rental Listings: 118
- Monthly Vacation Rental Income: $4,013
- Vacation Rental Cash on Cash Return: 7.29%
- Vacation Rental Cap Rate: 7.42%
- Vacation Rental Daily Rate: $168
- Vacation Rental Occupancy Rate: 54%
- Walk Score: 33
6. Laurel, MS
- Median Property Price: $417,487
- Average Price per Square Foot: $196
- Days on Market: 140
- Number of Vacation Rental Listings: 105
- Monthly Vacation Rental Income: $3,223
- Vacation Rental Cash on Cash Return: 7.21%
- Vacation Rental Cap Rate: 7.36%
- Vacation Rental Daily Rate: $161
- Vacation Rental Occupancy Rate: 53%
- Walk Score: 74
7. Bar Harbor, ME
- Median Property Price: $493,800
- Average Price per Square Foot: $396
- Days on Market: 41
- Number of Vacation Rental Listings: 306
- Monthly Vacation Rental Income: $5,115
- Vacation Rental Cash on Cash Return: 7.20%
- Vacation Rental Cap Rate: 7.28%
- Vacation Rental Daily Rate: $309
- Vacation Rental Occupancy Rate: 64%
- Walk Score: 75
8. Penn Yan, NY
- Median Property Price: $260,920
- Average Price per Square Foot: $190
- Days on Market: 270
- Number of Vacation Rental Listings: 145
- Monthly Vacation Rental Income: $3,544
- Vacation Rental Cash on Cash Return: 7.08%
- Vacation Rental Cap Rate: 7.22%
- Vacation Rental Daily Rate: $321
- Vacation Rental Occupancy Rate: 52%
- Walk Score: 77
9. Bellwood, IL
- Median Property Price: $236,886
- Average Price per Square Foot: $206
- Days on Market: 78
- Number of Vacation Rental Listings: 176
- Monthly Vacation Rental Income: $3,264
- Vacation Rental Cash on Cash Return: 7.04%
- Vacation Rental Cap Rate: 7.20%
- Vacation Rental Daily Rate: $163
- Vacation Rental Occupancy Rate: 61%
- Walk Score: 82
10. Terrytown, LA
- Median Property Price: $289,783
- Average Price per Square Foot: $134
- Days on Market: 47
- Number of Vacation Rental Listings: 780
- Monthly Vacation Rental Income: $2,792
- Vacation Rental Cash on Cash Return: 6.92%
- Vacation Rental Cap Rate: 7.08%
- Vacation Rental Daily Rate: $177
- Vacation Rental Occupancy Rate: 57%
- Walk Score: 66
11. West Saint Paul, MN
- Median Property Price: $299,821
- Average Price per Square Foot: $160
- Days on Market: 41
- Number of Vacation Rental Listings: 361
- Monthly Vacation Rental Income: $3,357
- Vacation Rental Cash on Cash Return: 6.88%
- Vacation Rental Cap Rate: 7.01%
- Vacation Rental Daily Rate: $152
- Vacation Rental Occupancy Rate: 60%
- Walk Score: 75
12. Broadview, IL
- Median Property Price: $271,610
- Average Price per Square Foot: $204
- Days on Market: 57
- Number of Vacation Rental Listings: 314
- Monthly Vacation Rental Income: $3,254
- Vacation Rental Cash on Cash Return: 6.78%
- Vacation Rental Cap Rate: 6.91%
- Vacation Rental Daily Rate: $163
- Vacation Rental Occupancy Rate: 59%
- Walk Score: 61
13. Robbinsdale, MN
- Median Property Price: $291,650
- Average Price per Square Foot: $138
- Days on Market: 48
- Number of Vacation Rental Listings: 370
- Monthly Vacation Rental Income: $3,199
- Vacation Rental Cash on Cash Return: 6.68%
- Vacation Rental Cap Rate: 6.80%
- Vacation Rental Daily Rate: $167
- Vacation Rental Occupancy Rate: 56%
- Walk Score: 73
14. Bridgeton, MO
- Median Property Price: $298,929
- Average Price per Square Foot: $163
- Days on Market: 26
- Number of Vacation Rental Listings: 134
- Monthly Vacation Rental Income: $3,295
- Vacation Rental Cash on Cash Return: 6.67%
- Vacation Rental Cap Rate: 6.79%
- Vacation Rental Daily Rate: $153
- Vacation Rental Occupancy Rate: 58%
- Walk Score: 3
15. Great Falls, MT
- Median Property Price: $349,360
- Average Price per Square Foot: $149
- Days on Market: 87
- Number of Vacation Rental Listings: 117
- Monthly Vacation Rental Income: $3,268
- Vacation Rental Cash on Cash Return: 6.61%
- Vacation Rental Cap Rate: 6.73%
- Vacation Rental Daily Rate: $133
- Vacation Rental Occupancy Rate: 56%
- Walk Score: 84
16. Silverton, OH
- Median Property Price: $252,460
- Average Price per Square Foot: $196
- Days on Market: 53
- Number of Vacation Rental Listings: 293
- Monthly Vacation Rental Income: $2,806
- Vacation Rental Cash on Cash Return: 6.58%
- Vacation Rental Cap Rate: 6.73%
- Vacation Rental Daily Rate: $144
- Vacation Rental Occupancy Rate: 52%
- Walk Score: 77
17. Harahan, LA
- Median Property Price: $367,800
- Average Price per Square Foot: $237
- Days on Market: 63
- Number of Vacation Rental Listings: 114
- Monthly Vacation Rental Income: $3,534
- Vacation Rental Cash on Cash Return: 6.54%
- Vacation Rental Cap Rate: 6.64%
- Vacation Rental Daily Rate: $140
- Vacation Rental Occupancy Rate: 60%
- Walk Score: 55
18. New Bern, NC
- Median Property Price: $382,648
- Average Price per Square Foot: $213
- Days on Market: 127
- Number of Vacation Rental Listings: 169
- Monthly Vacation Rental Income: $3,600
- Vacation Rental Cash on Cash Return: 6.54%
- Vacation Rental Cap Rate: 6.64%
- Vacation Rental Daily Rate: $151
- Vacation Rental Occupancy Rate: 57%
- Walk Score: 74
19. Columbus, GA
- Median Property Price: $230,653
- Average Price per Square Foot: $137
- Days on Market: 117
- Number of Vacation Rental Listings: 295
- Monthly Vacation Rental Income: $2,234
- Vacation Rental Cash on Cash Return: 6.50%
- Vacation Rental Cap Rate: 6.69%
- Vacation Rental Daily Rate: $122
- Vacation Rental Occupancy Rate: 57%
- Walk Score: 35
20. Mount Desert, ME
- Median Property Price: $793,790
- Average Price per Square Foot: $480
- Days on Market: 40
- Number of Vacation Rental Listings: 121
- Monthly Vacation Rental Income: $6,219
- Vacation Rental Cash on Cash Return: 6.49%
- Vacation Rental Cap Rate: 6.54%
- Vacation Rental Daily Rate: $321
- Vacation Rental Occupancy Rate: 60%
- Walk Score: 0
Vacation rental properties come with excellent income-generating potential, especially if you’re in a high-tourism market. As an investor looking to buy properties, you should never cross out vacation rentals as an investment strategy. The right property in the right neighborhood could give you a good return on investment and cash flow source.
Go to Mashvisor now to start looking for and analyzing the most profitable short term rental properties in any location of your choice.
How to Find the Best Places for Buying Investment Property in 2023
Buying an investment property is a great way to generate passive income. It is also a good way to diversify your investments and protect yourself from inflation. However, it can be difficult to find the best investment properties in different cities.
A few considerations when buying investment properties:
- Location of the property – You want to buy an investment property that is close enough to where you live so that you can visit it often but also far enough away. If something happens, it will not affect you too much. Out-of-town investments can also be considered but should be given plenty of thought.
- Price of the property – You want to buy a property with great potential for appreciation, especially if you don’t plan to sell it any time soon.
- Cash flow – You want your return on investment after expenses (cash on cash return) to be as high as it can be, considering the upkeep and other expenses associated with rental properties.
Related: What Is a Cash Flow Calculator for Real Estate Investors?
Investing With Mashvisor
Investment properties are a great way to make money. But it is not easy to find the best places to invest in. Mashvisor is one of the most popular sites for finding investment properties, already helping thousands of investors in their journeys.
As a website, Mashvisor provides a lot of data that can help you find the best places for buying investment property in 2023. The site gathers its data from highly reliable sources, such as Zillow, Realtor.com, the MLS, and Airbnb.
Mashvisor also provides detailed information about individual properties and neighborhoods. You can see how much rent each property generates, how much cash on cash return it offers, and how much profit you will make when you sell it.
In addition, once you subscribe to Mashvisor, you will be given access to handy real estate investing tools like its Property Search tool, real estate heatmap, and investment property calculator. The said tools will help you spot the best properties in the most profitable places that will help you achieve your investment goals.
So, before setting out to buy a random property, check out Mashvisor first to ensure you get your money’s worth.
Get started on your 7-day free trial with Mashvisor today, followed by a 15% lifetime discount.
Mashvisor provides access to several real estate investing tools like the real estate heatmap that will help you find profitable investment properties.
Wrapping It Up
Going into 2023, you must keep your eyes peeled for the most profitable investment opportunities. Knowing the best places for buying investment property as early as now will give you an edge over the competition.
It also helps if you use the best tools that will help you make accurate ROI projections so you don’t experience buyer’s remorse. Mashvisor will give you access to the best investment tools available out there today. Its tools are guaranteed to help you find the best deals on rental properties that fit your budget and match your needs.
Mashvisor will also give you access to up-to-date, high-quality data that will make calculations and projections as accurate and as realistic as possible.
Learn more about how Mashvisor can help you find the best deals in the most profitable markets by scheduling a demo now.
