Investor Blogs Best Places to Invest in Real Estate in Q3 2020 by Eman Hamed June 28, 2020June 25, 2020 by Eman Hamed June 28, 2020June 25, 2020 Even 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 In Best 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: $152,300 Price per Square Foot: $97 Traditional Rental Income: $1,333 Airbnb Rental Income: $1,219 Price to Rent Ratio: 10 Airbnb Occupancy Rate: 39% Average Days on Market: 88 2) Hutchinson, KS Median Property Price: $164,916 Price per Square Foot: $80 Traditional Rental Income: $1,031 Airbnb Rental Income: $1,570 Price to Rent Ratio: 13 Airbnb Occupancy Rate: 49% Average Days on Market: 106 3) Midwest City, OK Median Property Price: $180,943 Price per Square Foot: $106 Traditional Rental Income: $1,114 Airbnb Rental Income: $1,796 Price to Rent Ratio: 14 Airbnb Occupancy Rate: 60% Average Days on Market: NA 4) North Little Rock, AR Median Property Price: $185,804 Price per Square Foot: $98 Traditional Rental Income: $921 Airbnb Rental Income: $1,636 Price to Rent Ratio: 17 Airbnb Occupancy Rate: 57% Average Days on Market: 71 5) Riverton, WY Median Property Price: $188,731 Price per Square Foot: $105 Traditional Rental Income: $1,058 Airbnb Rental Income: $1,048 Price to Rent Ratio: 15 Airbnb Occupancy Rate: 36% Average Days on Market: 118 6) Warsaw, MO Median Property Price: $189,335 Price per Square Foot: $109 Traditional Rental Income: $1,017 Airbnb Rental Income: $1,200 Price to Rent Ratio: 16 Airbnb Occupancy Rate: 38% Average Days on Market: 111 7) Springfield, IL Median Property Price: $189,760 Price per Square Foot: $100 Traditional Rental Income: $1,104 Airbnb Rental Income: $1,905 Price to Rent Ratio: 14 Airbnb Occupancy Rate: 54% Average Days on Market: 76 8) Fairmont, WV Median Property Price: $192,742 Price per Square Foot: $117 Traditional Rental Income: $1,005 Airbnb Rental Income: $2,241 Price to Rent Ratio: 16 Airbnb Occupancy Rate: 66% Average Days on Market: 26 9) Des Moines, IA Median Property Price: $193,567 Price per Square Foot: $151 Traditional Rental Income: $973 Airbnb Rental Income: $2,332 Price to Rent Ratio: 17 Airbnb Occupancy Rate: 75% Average Days on Market: 86 10) Huntington, WV Median Property Price: $198,393 Price per Square Foot: $85 Traditional Rental Income: $1,068 Airbnb Rental Income: $1,808 Price to Rent Ratio: 15 Airbnb Occupancy Rate: 54% Average Days on Market: 160 To find an affordable investment property for sale in your market of choice, click here! Best Cities to Invest in Real Estate – Traditional Rental Income One 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 Properties 1) Westport, CT Traditional Rental Income: $5,714 Median Property Price: $1,104,744 Price per Square Foot: $414 Price to Rent Ratio: 16 Average Days on Market: 133 2) Wilton, CT Traditional Rental Income: $4,378 Median Property Price: $735,877 Price per Square Foot: $262 Price to Rent Ratio: 14 Average Days on Market: 146 3) Portsmouth, RI Traditional Rental Income: $4,169 Median Property Price: $804,103 Price per Square Foot: $361 Price to Rent Ratio: 16 Average Days on Market: 98 4) Key West, FL Traditional Rental Income: $3,808 Median Property Price: $996,594 Price per Square Foot: $692 Price to Rent Ratio: 22 Average Days on Market: 125 5) Rehoboth Beach, DE Traditional Rental Income: $3,581 Median Property Price: $730,573 Price per Square Foot: $351 Price to Rent Ratio: 17 Average Days on Market: 174 6) Norwalk, CT Traditional Rental Income: $3,455 Median Property Price: $728,917 Price per Square Foot: $316 Price to Rent Ratio: 18 Average Days on Market: 100 7) Jupiter, FL Traditional Rental Income: $3,207 Median Property Price: $772,510 Price per Square Foot: $340 Price to Rent Ratio: 20 Average Days on Market: 104 8) Stamford, CT Traditional Rental Income: $3,190 Median Property Price: $589,787 Price per Square Foot: $267 Price to Rent Ratio: 15 Average Days on Market: 67 9) Boston, MA Traditional Rental Income: $3,150 Median Property Price: $1,016,629 Price per Square Foot: $721 Price to Rent Ratio: 27 Average Days on Market: 60 10) Jackson, WY Traditional Rental Income: $3,010 Median Property Price: $1,727,383 Price per Square Foot: $773 Price to Rent Ratio: 47 Average Days on Market: 177 Best Cities to Invest in Real Estate – Airbnb Rental Income As 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: $8,822 Median Property Price: $996,594 Price per Square Foot: $692 Airbnb Occupancy Rate: 57% Average Airbnb Daily Rate: $694 2) Greenwich, CT Airbnb Rental Income: $5,291 Median Property Price: $1,729,364 Price per Square Foot: $579 Airbnb Occupancy Rate: 52% Average Airbnb Daily Rate: $255 3) Sedona, AZ Airbnb Rental Income: $4,960 Median Property Price: $922,910 Price per Square Foot: $343 Airbnb Occupancy Rate: 76% Average Airbnb Daily Rate: $161 4) Benton, AR Airbnb Rental Income: $4,836 Median Property Price: $283,989 Price per Square Foot: $125 Airbnb Occupancy Rate: 58% Average Airbnb Daily Rate: $139 5) Parkville, MO Airbnb Rental Income: $4,484 Median Property Price: $476,840 Price per Square Foot: $151 Airbnb Occupancy Rate: 58% Average Airbnb Daily Rate: $104 6) Isle of Palms, SC Airbnb Rental Income: $4,433 Median Property Price: $879,730 Price per Square Foot: $488 Airbnb Occupancy Rate: 42% Average Airbnb Daily Rate: $450 7) Annapolis, MD Airbnb Rental Income: $4,388 Median Property Price: $702,137 Price per Square Foot: $293 Airbnb Occupancy Rate: 51% Average Airbnb Daily Rate: $284 8) Broken Bow, OK Airbnb Rental Income: $4,371 Median Property Price: $486,782 Price per Square Foot: $258 Airbnb Occupancy Rate: 59% Average Airbnb Daily Rate: $249 9) Bridgeport, CT Airbnb Rental Income: $4,327 Median Property Price: $255,297 Price per Square Foot: $156 Airbnb Occupancy Rate: 48% Average Airbnb Daily Rate: $155 10) Portsmouth, NH Airbnb Rental Income: $4,312 Median Property Price: $755,057 Price per Square Foot: $395 Airbnb Occupancy Rate: 58% Average Airbnb Daily Rate: $268 Find a Profitable Airbnb Investment Property Best 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 Heatmap Related: Finding Income Properties Using a Heatmap 1) Heartland, TX Traditional Cash on Cash Return: 6% Median Property Price: $233,929 Price per Square Foot: $118 Traditional Rental Income: $2,515 Price to Rent Ratio: 8 Average Days on Market: NA 2) Redford, MI Traditional Cash on Cash Return: 5% Median Property Price: $123,233 Price per Square Foot: $105 Traditional Rental Income: $1,350 Price to Rent Ratio: 8 Average Days on Market: 79 3) Valparaiso, IN Traditional Cash on Cash Return: 5% Median Property Price: $353,406 Price per Square Foot: $145 Traditional Rental Income: $2,522 Price to Rent Ratio: 12 Average Days on Market: 98 4) Union Township, OH Traditional Cash on Cash Return: 5% Median Property Price: $229,668 Price per Square Foot: $121 Traditional Rental Income: $1,942 Price to Rent Ratio: 10 Average Days on Market: 59 5) Sun City West, AZ Traditional Cash on Cash Return: 4% Median Property Price: $330,329 Price per Square Foot: $168 Traditional Rental Income: $2,373 Price to Rent Ratio: 12 Average Days on Market: 43 6) Westfield, IN Traditional Cash on Cash Return: 4% Median Property Price: $367,844 Price per Square Foot: $130 Traditional Rental Income: $2,676 Price to Rent Ratio: 11 Average Days on Market: 80 7) Florence, SC Traditional Cash on Cash Return: 4% Median Property Price: $239,762 Price per Square Foot: $104 Traditional Rental Income: $1,590 Price to Rent Ratio: 13 Average Days on Market: 135 8) Ozark, MO Traditional Cash on Cash Return: 4% Median Property Price: $308,981 Price per Square Foot: $128 Traditional Rental Income: $2,021 Price to Rent Ratio: 13 Average Days on Market: 52 9) Park Forest, IL Traditional Cash on Cash Return: 4% Median Property Price: $132,926 Price per Square Foot: $107 Traditional Rental Income: $1,313 Price to Rent Ratio: 8 Average Days on Market: 67 10) Clarksburg, WV Traditional Cash on Cash Return: 4% Median Property Price: $142,856 Price per Square Foot: $76 Traditional Rental Income: $1,015 Price to Rent Ratio: 12 Average Days on Market: 25 Best 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: $338,434 Price per Square Foot: $167 Airbnb Rental Income: $4,179 Airbnb Occupancy Rate: 58% Average Airbnb Daily Rate: $125 2) Calera, AL Airbnb Cash on Cash Return: 7.2% Median Property Price: $237,447 Price per Square Foot: $150 Airbnb Rental Income: $2,442 Airbnb Occupancy Rate: 48% Average Airbnb Daily Rate: $104 3) Benton, AR Airbnb Cash on Cash Return: 7.2% Median Property Price: $283,989 Price per Square Foot: $125 Airbnb Rental Income: $4,836 Airbnb Occupancy Rate: 58% Average Airbnb Daily Rate: $139 4) Ladson, SC Airbnb Cash on Cash Return: 6.8% Median Property Price: $243,625 Price per Square Foot: $134 Airbnb Rental Income: $2,725 Airbnb Occupancy Rate: 63% Average Airbnb Daily Rate: $117 5) Florissant, MO Airbnb Cash on Cash Return: 6.7% Median Property Price: $167,721 Price per Square Foot: $89 Airbnb Rental Income: $2,368 Airbnb Occupancy Rate: 68% Average Airbnb Daily Rate: $89 6) Belleville, IL Airbnb Cash on Cash Return: 6.7% Median Property Price: $172,890 Price per Square Foot: $89 Airbnb Rental Income: $2,618 Airbnb Occupancy Rate: 65% Average Airbnb Daily Rate: $117 7) Cuyahoga Falls, OH Airbnb Cash on Cash Return: 6.7% Median Property Price: $193,177 Price per Square Foot: $119 Airbnb Rental Income: $2,660 Airbnb Occupancy Rate: 41% Average Airbnb Daily Rate: $79 8) Pike Road, AL Airbnb Cash on Cash Return: 6.3% Median Property Price: $378,356 Price per Square Foot: $156 Airbnb Rental Income: $4,115 Airbnb Occupancy Rate: 49% Average Airbnb Daily Rate: $199 9) Greenville, NC Airbnb Cash on Cash Return: 6.3% Median Property Price: $241,088 Price per Square Foot: $110 Airbnb Rental Income: $2,370 Airbnb Occupancy Rate: 67% Average Airbnb Daily Rate: $100 10) New Castle, DE Airbnb Cash on Cash Return: 6.1% Median Property Price: $232,875 Price per Square Foot: $135 Airbnb Rental Income: $3,149 Airbnb Occupancy Rate: 59% Average Airbnb Daily Rate: $136 To 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 Calculator Want 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 1 FacebookTwitterGoogle +PinterestLinkedin Eman Hamed Eman 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? Next Post How Much Do You Need to Buy a Rental Property? Related Posts How to Identify Up and Coming Neighborhoods for REI What Is a Pocket Listing? Should You Use It to Sell Your Property? What Cash on Cash Return by City Should Real Estate Investors Expect in 2022? 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