Investor BlogsBest Places to Invest in Real Estate in Q3 2020 by Eman Hamed June 28, 2020June 25, 2020 by Eman Hamed June 28, 2020June 25, 2020Even with today’s conditions due to the coronavirus pandemic, real estate investing is still one of the best ways to become wealthy and is still considered a safe haven in 2020. Mortgage interest rates are low, home prices are stable, and rental prices are growing. However, how profitable a real estate investment has and will always depend on location. If the market dynamics are optimal, then you’ll have an opportunity to make a good return on investment. So the important question to ask is: where are the best places to invest in real estate?Finding the top markets requires running an in-depth real estate market analysis which could take a lot of your time. Mashvisor, however, makes this a lot easier and more efficient. Every year, we put out a list of the best cities in the US for real estate investing to give investors an idea of where they should buy rental properties. We’ve already released a list of the best places to invest in real estate 2020 at the beginning of the year. But, as the second half of the year just around the corner and market conditions changed, we believe an update is necessary.In this article, we review the best places to buy rental property for Q3 and the second half of 2020 according to Mashvisor’s data. To make sure you’re selecting a real estate market based on your investment strategy, we’ve organized the cities into 5 categories. You’ll see where to invest in rental property for affordability, traditional rental income, Airbnb rental income, and traditional cash on cash return, and Airbnb cash on cash return. Mashvisor’s real estate data is taken from reliable listing sources like the MLS and Zillow. Learn more about our data methodology.Related: How to Choose a Real Estate Market to Invest InBest Places to Invest in Real Estate – Affordability The first category and factor that investors base their decision on when it comes to where they’ll find the best real estate investments is property prices. As you’re setting up a plan for real estate investing, the first thing you determine is your budget. It’s important to have a budget because it helps you narrow down your options of cities according to median prices. It’ll also help later when you start searching for rental properties for sale as it allows you to focus on properties that you can actually afford. Here’s a list of the most affordable housing markets in the US right now! These are the best cities for affordable real estate investments where median prices are way below the national median.1) Waterbury, CT Median Property Price: $152,300Price per Square Foot: $97Traditional Rental Income: $1,333Airbnb Rental Income: $1,219Price to Rent Ratio: 10Airbnb Occupancy Rate: 39%Average Days on Market: 882) Hutchinson, KS Median Property Price: $164,916Price per Square Foot: $80Traditional Rental Income: $1,031Airbnb Rental Income: $1,570Price to Rent Ratio: 13Airbnb Occupancy Rate: 49%Average Days on Market: 1063) Midwest City, OK Median Property Price: $180,943Price per Square Foot: $106Traditional Rental Income: $1,114Airbnb Rental Income: $1,796Price to Rent Ratio: 14Airbnb Occupancy Rate: 60%Average Days on Market: NA4) North Little Rock, AR Median Property Price: $185,804Price per Square Foot: $98Traditional Rental Income: $921Airbnb Rental Income: $1,636Price to Rent Ratio: 17Airbnb Occupancy Rate: 57%Average Days on Market: 715) Riverton, WY Median Property Price: $188,731Price per Square Foot: $105Traditional Rental Income: $1,058Airbnb Rental Income: $1,048Price to Rent Ratio: 15Airbnb Occupancy Rate: 36%Average Days on Market: 1186) Warsaw, MO Median Property Price: $189,335Price per Square Foot: $109Traditional Rental Income: $1,017Airbnb Rental Income: $1,200Price to Rent Ratio: 16Airbnb Occupancy Rate: 38%Average Days on Market: 1117) Springfield, IL Median Property Price: $189,760Price per Square Foot: $100Traditional Rental Income: $1,104Airbnb Rental Income: $1,905Price to Rent Ratio: 14Airbnb Occupancy Rate: 54%Average Days on Market: 768) Fairmont, WV Median Property Price: $192,742Price per Square Foot: $117Traditional Rental Income: $1,005Airbnb Rental Income: $2,241Price to Rent Ratio: 16Airbnb Occupancy Rate: 66%Average Days on Market: 269) Des Moines, IA Median Property Price: $193,567Price per Square Foot: $151Traditional Rental Income: $973Airbnb Rental Income: $2,332Price to Rent Ratio: 17Airbnb Occupancy Rate: 75%Average Days on Market: 8610) Huntington, WV Median Property Price: $198,393Price per Square Foot: $85Traditional Rental Income: $1,068Airbnb Rental Income: $1,808Price to Rent Ratio: 15Airbnb Occupancy Rate: 54%Average Days on Market: 160To find an affordable investment property for sale in your market of choice, click here! Best Cities to Invest in Real Estate – Traditional Rental IncomeOne of the most important metrics to determine the profitability of investment properties is the potential rental income. This is true for both traditional long-term rentals and Airbnb short-term rentals. If you want to become a landlord, then these the best places to invest in real estate in the US for high rental income. Keep in mind, however, that high rental income cities typically have a steep median price which can make it hard to find an affordable investment property for sale. So, make sure to run an analysis to see whether owning rental property allows you to make positive cash flow before buying one.Related: How to Find Positive Cash Flow Properties1) Westport, CT Traditional Rental Income: $5,714Median Property Price: $1,104,744Price per Square Foot: $414Price to Rent Ratio: 16Average Days on Market: 1332) Wilton, CT Traditional Rental Income: $4,378Median Property Price: $735,877Price per Square Foot: $262Price to Rent Ratio: 14Average Days on Market: 1463) Portsmouth, RI Traditional Rental Income: $4,169Median Property Price: $804,103Price per Square Foot: $361Price to Rent Ratio: 16Average Days on Market: 984) Key West, FL Traditional Rental Income: $3,808Median Property Price: $996,594Price per Square Foot: $692Price to Rent Ratio: 22Average Days on Market: 1255) Rehoboth Beach, DE Traditional Rental Income: $3,581Median Property Price: $730,573Price per Square Foot: $351Price to Rent Ratio: 17Average Days on Market: 1746) Norwalk, CT Traditional Rental Income: $3,455Median Property Price: $728,917Price per Square Foot: $316Price to Rent Ratio: 18Average Days on Market: 1007) Jupiter, FL Traditional Rental Income: $3,207Median Property Price: $772,510Price per Square Foot: $340Price to Rent Ratio: 20Average Days on Market: 1048) Stamford, CT Traditional Rental Income: $3,190Median Property Price: $589,787Price per Square Foot: $267Price to Rent Ratio: 15Average Days on Market: 679) Boston, MA Traditional Rental Income: $3,150Median Property Price: $1,016,629Price per Square Foot: $721Price to Rent Ratio: 27Average Days on Market: 6010) Jackson, WY Traditional Rental Income: $3,010Median Property Price: $1,727,383Price per Square Foot: $773Price to Rent Ratio: 47Average Days on Market: 177Best Cities to Invest in Real Estate – Airbnb Rental IncomeAs mentioned, rental income is a great way to determine the profitability of an Airbnb investment property as well. Most of the time, investors prefer renting out their properties on Airbnb because it usually yields higher rental income. But, that’s not true in all locations. Here are the best places to invest in real estate by listing your property as a short-term rental. If you don’t already own a property in these cities and you’re planning to buy one specifically to list it as a vacation rental, make sure to check the city’s short-term rental regulations first. Regulations often include paying high taxes which could affect your Airbnb income.1) Key West, FL Airbnb Rental Income: $8,822Median Property Price: $996,594Price per Square Foot: $692Airbnb Occupancy Rate: 57%Average Airbnb Daily Rate: $6942) Greenwich, CT Airbnb Rental Income: $5,291Median Property Price: $1,729,364Price per Square Foot: $579Airbnb Occupancy Rate: 52%Average Airbnb Daily Rate: $2553) Sedona, AZ Airbnb Rental Income: $4,960Median Property Price: $922,910Price per Square Foot: $343Airbnb Occupancy Rate: 76%Average Airbnb Daily Rate: $1614) Benton, AR Airbnb Rental Income: $4,836Median Property Price: $283,989Price per Square Foot: $125Airbnb Occupancy Rate: 58%Average Airbnb Daily Rate: $1395) Parkville, MO Airbnb Rental Income: $4,484Median Property Price: $476,840Price per Square Foot: $151Airbnb Occupancy Rate: 58%Average Airbnb Daily Rate: $1046) Isle of Palms, SC Airbnb Rental Income: $4,433Median Property Price: $879,730Price per Square Foot: $488Airbnb Occupancy Rate: 42%Average Airbnb Daily Rate: $4507) Annapolis, MD Airbnb Rental Income: $4,388Median Property Price: $702,137Price per Square Foot: $293Airbnb Occupancy Rate: 51%Average Airbnb Daily Rate: $2848) Broken Bow, OK Airbnb Rental Income: $4,371Median Property Price: $486,782Price per Square Foot: $258Airbnb Occupancy Rate: 59%Average Airbnb Daily Rate: $2499) Bridgeport, CT Airbnb Rental Income: $4,327Median Property Price: $255,297Price per Square Foot: $156Airbnb Occupancy Rate: 48%Average Airbnb Daily Rate: $15510) Portsmouth, NH Airbnb Rental Income: $4,312Median Property Price: $755,057Price per Square Foot: $395Airbnb Occupancy Rate: 58%Average Airbnb Daily Rate: $268 Find a Profitable Airbnb Investment PropertyBest Places to Invest in Real Estate – Traditional Cash on Cash Return Cash on cash return is the best metric for calculating the rate of return on a rental property because it’s more accurate than the cap rate or the simple ROI formula. Cash on cash return lets you factor in your financing method (cash or mortgage) to estimate your returns based on how much money you actually invested. Like the cap rate, COC return varies by city and even neighborhood. Below you’ll find a list of the best places to buy investment property for high cash on cash return in 2020. Keep in mind these are just city averages. You can use Mashvisor’s Real Estate Heatmap to analyze each housing market and find rental properties for sale with higher returns.Mashvisor’s Real Estate HeatmapRelated: Finding Income Properties Using a Heatmap1) Heartland, TX Traditional Cash on Cash Return: 6%Median Property Price: $233,929Price per Square Foot: $118Traditional Rental Income: $2,515Price to Rent Ratio: 8Average Days on Market: NA2) Redford, MI Traditional Cash on Cash Return: 5%Median Property Price: $123,233Price per Square Foot: $105Traditional Rental Income: $1,350Price to Rent Ratio: 8Average Days on Market: 793) Valparaiso, IN Traditional Cash on Cash Return: 5%Median Property Price: $353,406Price per Square Foot: $145Traditional Rental Income: $2,522Price to Rent Ratio: 12Average Days on Market: 984) Union Township, OH Traditional Cash on Cash Return: 5%Median Property Price: $229,668Price per Square Foot: $121Traditional Rental Income: $1,942Price to Rent Ratio: 10Average Days on Market: 595) Sun City West, AZ Traditional Cash on Cash Return: 4%Median Property Price: $330,329Price per Square Foot: $168Traditional Rental Income: $2,373Price to Rent Ratio: 12Average Days on Market: 436) Westfield, IN Traditional Cash on Cash Return: 4%Median Property Price: $367,844Price per Square Foot: $130Traditional Rental Income: $2,676Price to Rent Ratio: 11Average Days on Market: 807) Florence, SC Traditional Cash on Cash Return: 4%Median Property Price: $239,762Price per Square Foot: $104Traditional Rental Income: $1,590Price to Rent Ratio: 13Average Days on Market: 1358) Ozark, MO Traditional Cash on Cash Return: 4%Median Property Price: $308,981Price per Square Foot: $128Traditional Rental Income: $2,021Price to Rent Ratio: 13Average Days on Market: 529) Park Forest, IL Traditional Cash on Cash Return: 4%Median Property Price: $132,926Price per Square Foot: $107Traditional Rental Income: $1,313Price to Rent Ratio: 8Average Days on Market: 6710) Clarksburg, WV Traditional Cash on Cash Return: 4%Median Property Price: $142,856Price per Square Foot: $76Traditional Rental Income: $1,015Price to Rent Ratio: 12Average Days on Market: 25Best Cities to Invest in Real Estate – Airbnb Cash on Cash Return If you’re looking for the best places to invest in real estate for Airbnb, then you should have Airbnb data for cash on cash return as well. Luckily, Mashvisor’s real estate API provides this type of data and more. Our nationwide short-term rental data comes directly from Airbnb.com and mirrors the performance of actual Airbnb listing over the past 12 months. Investors can, thus, assure that our Airbnb data is accurate and reliable for making investment decisions. According to this data, you can find the best Airbnb investments of 2020 with high cash on cash returns in the following real estate markets.1) Lake Zurich, IL Airbnb Cash on Cash Return: 8.8%Median Property Price: $338,434Price per Square Foot: $167Airbnb Rental Income: $4,179Airbnb Occupancy Rate: 58%Average Airbnb Daily Rate: $1252) Calera, AL Airbnb Cash on Cash Return: 7.2%Median Property Price: $237,447Price per Square Foot: $150Airbnb Rental Income: $2,442Airbnb Occupancy Rate: 48%Average Airbnb Daily Rate: $1043) Benton, AR Airbnb Cash on Cash Return: 7.2%Median Property Price: $283,989Price per Square Foot: $125Airbnb Rental Income: $4,836Airbnb Occupancy Rate: 58%Average Airbnb Daily Rate: $1394) Ladson, SC Airbnb Cash on Cash Return: 6.8%Median Property Price: $243,625Price per Square Foot: $134Airbnb Rental Income: $2,725Airbnb Occupancy Rate: 63%Average Airbnb Daily Rate: $1175) Florissant, MO Airbnb Cash on Cash Return: 6.7%Median Property Price: $167,721Price per Square Foot: $89Airbnb Rental Income: $2,368Airbnb Occupancy Rate: 68%Average Airbnb Daily Rate: $896) Belleville, IL Airbnb Cash on Cash Return: 6.7%Median Property Price: $172,890Price per Square Foot: $89Airbnb Rental Income: $2,618Airbnb Occupancy Rate: 65%Average Airbnb Daily Rate: $1177) Cuyahoga Falls, OH Airbnb Cash on Cash Return: 6.7%Median Property Price: $193,177Price per Square Foot: $119Airbnb Rental Income: $2,660Airbnb Occupancy Rate: 41%Average Airbnb Daily Rate: $798) Pike Road, AL Airbnb Cash on Cash Return: 6.3%Median Property Price: $378,356Price per Square Foot: $156Airbnb Rental Income: $4,115Airbnb Occupancy Rate: 49%Average Airbnb Daily Rate: $1999) Greenville, NC Airbnb Cash on Cash Return: 6.3%Median Property Price: $241,088Price per Square Foot: $110Airbnb Rental Income: $2,370Airbnb Occupancy Rate: 67%Average Airbnb Daily Rate: $10010) New Castle, DE Airbnb Cash on Cash Return: 6.1%Median Property Price: $232,875Price per Square Foot: $135Airbnb Rental Income: $3,149Airbnb Occupancy Rate: 59%Average Airbnb Daily Rate: $136To start looking for and analyzing investment properties in the best places to invest in real estate, click here.Final Words for Real Estate Investors After reading these lists of best places to invest in real estate 2020, you probably have an idea of which cities best match your investment strategy. But your market research is not done yet. The next steps are to find the best neighborhood in your city of choice and, then, find an investment property for sale. You can easily complete these tasks using Mashvisor’s tools! We’ve mentioned the Real Estate Heatmap that provides neighborhood data so you can analyze and identify which area is best for investing in real estate based on property prices, rental income, and cash on cash return (for both traditional and Airbnb rentals).Mashvisor’s real estate investment software also comes with a Property Finder, the ultimate tool for finding rental properties. Using this tool, you can find properties for sale in up to 5 cities at the same time. Meaning, your property search can be done in a matter of minutes. And that’s not all – you can also find off-market properties on our Property Marketplace! Moreover, all real estate data above are estimated using Mashvisor’s Investment Property Calculator which you can also get access to. This tool provides a pre-estimated analysis for every property in the US housing market that tells you how profitable the property is as a traditional and an Airbnb investment.Mashvisor’s Investment Property CalculatorWant to access and use these great tools to find the best investments for 2020 in your market of choice? All you’ve got to do is sign up for Mashvisor. Start Your 7-Day Free Trial Now! Start Your Investment Property Search! START FREE TRIAL AirbnbBoston MACash on Cash ReturnKey West FLLocationRental IncomeTraditional 1FacebookTwitterGoogle +PinterestLinkedin Eman HamedEman is a Content Writer at Mashvisor. With a focus on market reports, she enjoys researching the state of the real estate market in different cities across the US. Eman also writes about trends, forecasts, and tips for beginner investors to gain the confidence and knowledge they need to make wise decisions. Previous Post Mortgage Rate Locking: What Does It Mean and When to Do It? 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