Coronavirus Real Estate TrendsThe Best Real Estate Investments During the Spread of the Coronavirus by Eman Hamed March 17, 2020March 26, 2020 by Eman Hamed March 17, 2020March 26, 2020As coronavirus outbreaks have emerged in more places around the world, we’re now flooded with headlines about COVID-19 and its global impact. Uncertainty is hanging over many markets from stocks to tourism to the convention industry. It makes sense for real estate investors to worry as well. However, real estate has always been viewed as the best and safest place to invest and make money. The US housing market has also proved throughout the years to be a good place to invest in during times of turmoil and crisis. So if you’re asking “is real estate a good investment still?” the answer is yes – well, sort of.You see, there are many ways and strategies to make money as a real estate investor in the US. You can buy-and-hold real estate, fix-and-flip properties, wholesale real estate, invest in REITs, or invest in income properties. Unfortunately, the coronavirus pandemic is affecting some of these real estate investment strategies right now. The biggest impact of COVID-19 on real estate can be seen in the short-term rental market. As more tourists cancel their vacations, this is hurting the bottom lines for those investing in Airbnb rental properties. For more details, read: Airbnb Hosts Feeling the Effect of the Coronavirus.So now that question remains: What are the best real estate investments during the spread of coronavirus in the US housing market 2020? The answer is: residential real estate! Owning a traditional rental property is one of the oldest ways to invest in real estate and one that will last for years to come and be profitable even in times of crisis. COVID-19 is unlikely to have severe, long-lasting effects on this real estate investing sector as people who can’t afford to buy will always need a place to live. Here are more reasons why buying long term rental properties is still one of the best real estate investments now:Benefits of Investing with the Traditional Rental Strategy#1. Higher Demand in 2020As mentioned earlier, one of the reasons why residential rental properties are the best types of real estate investments in 2020 is because people are always looking for them. As property prices are increasing in many parts of the US housing market, homeownership is becoming an unaffordable option. And because people will always need a place to live, the demand for long term rental properties has increased over the years. And so far, the novel coronavirus is unlikely to drive down the demand for these rental properties, resulting in a continued favorable rental environment.Research shows that interest is strongest in single family rental properties with more real estate investors flocking to the sector. However, multi family rental properties are also doing well in the US housing market- vacancy rates were at just 4.2% at the end of 2019. Meaning, whether you’re interested to invest in single family homes or multi family homes, there are definitely good real estate investment opportunities available to choose from and make money out of. To start looking for and analyzing single family homes and multi family homes for sale in your city and neighborhood of choice, click here.#2. Reliable Cash Flow Buying an investment property and renting it out on a long term basis is also one of the best real estate investments for cash flow. This is because, unlike short-term rentals, residential real estate rentals provide investors with a predictable and stable rental income every month. As long as you make your investment in a top location for traditional rentals where you can find good tenants and keep rental expenses under control, you’ll have a high chance of generating positive cash flow that goes straight into your pocket.Having positive cash flow is important to real estate investors because positive cash flow properties pay for themselves. This means that once you’ve paid your down payment to finance your property, you won’t need to spend any money from your pocket again. Long term rental properties are also the best income producing real estate investments because positive cash flow reduces your real estate investing risks and helps you build and grow your investment portfolio faster.Related: What Is Cash Flow and How Does It Let Real Estate Investors Make Money?#3. Low Mortgage Rates Another reason why traditional rentals are the best real estate investments now especially is the favorable mortgage interest rates. Mortgage rates had fallen to a record low as the COVID-19 pandemic began to spread two weeks ago. A flood of refinancing applications, however, overwhelmed lenders and caused investors in mortgage-backed bonds to back off. As a result, this caused mortgage rates to jump over 50 basis points in one day! But on Sunday, the Fed said it will begin buying $200 billion of mortgage-backed bonds in an effort to fight the economic impact of the coronavirus.This move is going to stabilize and likely lower mortgage rates yet again. According to Matthew Graham, chief operating officer at Mortgage News Daily, the Fed’s move is going to “keep mortgage rates in a happier zone under 4%. It will pave the way to a return to or below 3% in the coming weeks”. Meaning, if you’re a real estate investor looking to buy rental property by taking out a mortgage loan or refinancing, this is certainly in your favor.#4. More Flexibility Finally, owning a residential real estate rental gives real estate investors some flexibility. How so? Well, if you don’t wish to be a landlord and handle all the responsibilities that come with being one, you can hire a professional property management company to do the work for you! One thing to keep in mind is that a property manager will charge you a flat fee or a percentage of your monthly rental income. Meanwhile, you will enjoy passive rental income from your real estate investments from the safety of your home. What’s more, is that professional property managers know how to optimize the management of your long term rental and increase your profitability and return on investment.So regardless of this new health scare from the coronavirus pandemic, traditional rentals remain the best types of real estate investments in the USA 2020. Residential supply and demand are largely in balance and it’s fair to assume that while job creation and economic growth will slow down, they remain positive nonetheless. This should lead to a relatively stable outlook for the residential sector over the remainder of 2020. One question that is left unanswered, however, is: Where are the best real estate investments in the USA right now?Where to Find the Best Real Estate Investments 2020Since location is the main factor to consider when deciding where to start real estate investing, Mashvisor – a real estate analytics software company – has looked into real estate data for multiple cities across the nation and came up with this list of the best cities to buy rental property. Our criteria for this list was to find cities with affordable property prices, good cap rates (over 4%), low price to rent ratios, and great rental income potential. Together, these factors make for the best places to invest in real estate.Related: How to Choose a Real Estate Market to Invest InSo, if you’re looking for the best real estate investments in the USA, here is where you’ll find them:#1. Rotonda West, FLMedian Property Price: $302,438Price/Square Foot: $160Price to Rent Ratio: 9Monthly Traditional Rental Income: $2,654Traditional Cap Rate: 5.47%#2. Fort Mitchell, ALMedian Property Price: $207,000Price/Square Foot: $90Price to Rent Ratio: 9Monthly Traditional Rental Income: $1,852Traditional Cap Rate: 5.34%#3. Saint Albans, WVMedian Property Price: $122,349Price/Square Foot: $76Price to Rent Ratio: 8Monthly Traditional Rental Income: $1,185Traditional Cap Rate: 5.21%#4. South Holland, ILMedian Property Price: $177,111Price/Square Foot: $116Price to Rent Ratio: 7Monthly Traditional Rental Income: $2,019Traditional Cap Rate: 5.17%#5. Cedar Key, FLMedian Property Price: $320,076Price/Square Foot: $251Price to Rent Ratio: 10Monthly Traditional Rental Income: $2,612Traditional Cap Rate: 5.14%#6. Colerain Township, OHMedian Property Price: $206,588Price/Square Foot: $110Price to Rent Ratio: 9Monthly Traditional Rental Income: $1,886Traditional Cap Rate: 5.07%#7. Blythe, CAMedian Property Price: $220,201Price/Square Foot: $150Price to Rent Ratio: 11Monthly Traditional Rental Income: $1,647Traditional Cap Rate: 4.78%#8. Pontiac, MIMedian Property Price: $118,592Price/Square Foot: $98Price to Rent Ratio: 9Monthly Traditional Rental Income: $1,086Traditional Cap Rate: 4.46%#9. Lake Ariel, PAMedian Property Price: $203,980Price/Square Foot: $99Price to Rent Ratio: 9Monthly Traditional Rental Income: $1,810Traditional Cap Rate: 4.43%#10. Southgate, MIMedian Property Price: $133,835Price/Square Foot: $116Price to Rent Ratio: 8Monthly Traditional Rental Income: $1,375Traditional Cap Rate: 4.39%Ready to start looking for an investment property for sale? Sign Up for a 7-Day Free Trial with Mashvisor to find the best real estate investments based on data and analytics. Mashvisor will provide data not only for your city and neighborhood of choice, but also property data to help you run a rental property analysis in a matter of minutes. Start Your Investment Property Search! START FREE TRIAL Cash FlowLocationLong-Term StrategyMortgageRental IncomeTraditional 0FacebookTwitterGoogle +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 How to Get Into Rental Properties with Mashvisor Next Post What the 0% Interest Rate Means for Mortgage Rates Related Posts How to Recession Proof Your Real Estate Business What Airbnb Hosts Can Do with Their Rental Properties During the Coronavirus Will Rent Prices Go Down in The US Market 2020? 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