Invest in These Cities for High Cash on Cash Return with Long Term Rentals

A strong indicator of high return on investment is the cash on cash return. If you’re looking to invest in long term rentals, here are the cities to search in.

Making money in real estate depends on multiple key factors. Of course, if you’re looking for the best place to invest in real estate, you first need to decide on a rental strategy. Long term or short term, such as Airbnb properties? One of those key factors is the cash on cash return. This metric, among others in real estate, can represent the performance of long term rentals in any location.

Related: Location Location Location: What Makes for the Best Place to Invest in Real Estate?

It’s important for traditional investment properties to show high levels of performance; you can measure performance through metrics other than cash on cash return, such as the cap rate and the occupancy rate. However, today’s blog is all about high cash on cash return and the best cities for real estate investment in long term rentals. Let’s get into it.

Related: Traditional Rental Strategy: Go for These Cities for Cap Rate

Where to Invest in Real Estate for Long Term Rentals – High Cash on Cash Return

The following data is provided by Mashvisor’s investment property calculator (which includes a cash on cash return calculator). To find nationwide data with the click of a button, sign up and take advantage of Mashvisor’s many tools. To learn more about how we will help you make faster and smarter real estate investment decisions, click here. Now let’s talk best cities for long term rentals.  

1. Camden, NJ

• Traditional Cash on Cash Return: 5.25%
• Median Property Price: $102,522
• Price per Sq/Ft: $79.36
• Monthly Traditional Rental Income: $1,237

If you’re looking for high returns and a stable profit, long term rentals in Camden, NJ are your best bet. Property prices are as low as you can ask, and an average cash on cash return of 5.25% is quite impressive. Keyword: average, so you are bound to find long term rentals performing at much higher cash on cash return rates. If you aren’t convinced, we’ve used our Property Finder tool to locate a top-performing property listed for sale right now in Camden, NJ.

Do you have a free Mashvisor account? Click here to use our Property Finder and find properties in a matter of minutes! For now, however, here are the specs on this long term rental property in Camden.

• Property Type: Townhouse
• Property Neighborhood: Whitman Park
• Listed Property Price: $57,999
• 1,678 Sq/Ft
• $35 per Sq/Ft
• 4 Beds and 2 Baths
• Comparable Traditional Rental Income: $1,420
• Traditional Cash on Cash Return: 14.66%
• Traditional Occupancy Rate: 89%
• Short Description: Investor delight! Tenant occupied month to month at $850 per month. Fenced rear yard and open front porch. Has been updated with a new roof!

For more details on this property and other long term rentals in Camden, click here.

2. Key West, FL

• Traditional Cash on Cash Return: 4.2%
• Median Property Price: $978,988
• Price per Sq/Ft: $693.43
• Monthly Traditional Rental Income: $4,103

Real estate investors know how successful traditional investment properties are in Florida. One of the best places to buy rental property in Florida is Key West. Key West isn’t only a hot vacation spot, it’s also a popular city many people choose to live in. Property prices are expected to vary from location to location. The high median property price for investment properties in Key West, FL also reflects their high market value. Here’s one of the many profitable long term rentals listed for sale in Key West.

• Property Type: Condo/Coop
• Property Neighborhood: New Town
• Listed Property Price: $274,000
• 750 Sq/Ft
• $365 per Sq/Ft
• 2 Beds and 1 Bath
• Comparable Traditional Rental Income: $3,551
• Traditional Cash on Cash Return: 9.36%
• Traditional Occupancy Rate: 89%
• Short Description: Looking for low condo fees? Then this is the condo for you. Offered is a second floor unit with central air condition, washer dryer, tile floors, lighted ceiling fans, and many other amenities. The location is central to shopping centers, movie theater, ballparks, schools, banking, and just a short ride to either the Beach or Downtown Key West.

For more details on this property and other long term rentals in Key West, click here. 

Related: How to Buy the Best and Most Profitable Rental Properties

3. Riverhead, NY

• Traditional Cash on Cash Return: 4.15%
• Median Property Price: $453,241
• Price per Sq/Ft: $233.11
• Monthly Traditional Rental Income: $3,339

New York State is a great real estate market to invest in long term rentals. Riverhead is a town within Suffolk County, New York, on the north shore of Long Island. High property prices mean a lot of New York’s residents are opting to rent rather than buy. This is great news for an investor interested in long term rentals. Let’s check out the info of a top-performing investment property listed for sale in Riverhead, NY.

• Property Type: Single Family Residential
• Property Neighborhood: Baiting Hollow
• Listed Property Price: $649,000
• 3,110 Sq/Ft
• $209 per Sq/Ft
• 4 Beds and 4 Baths
• Comparable Traditional Rental Income: $11,763
• Traditional Cash on Cash Return: 14.77%
• Traditional Occupancy Rate: 89%
• Short Description: This is a chic and sophisticated Hamptons style home. Beautiful sunsets from your own back deck. Memberships available for use of amenities after trial period.

For more details on this property and other long term rentals in Riverhead, click here.

4. Santa Rosa, CA

• Traditional Cash on Cash Return: 3.36%
• Median Property Price: $651,665
• Price per Sq/Ft: $400.19
• Monthly Traditional Rental Income: $3,910

Santa Rosa is a city in Sonoma County known for its wineries. Its housing market is one of the few markets in the country that has seen steady price growth since 2009. With positive indicators and trends in place, continuous growth is expected for years to come. There are many attractive investment properties listed for sale in this real estate market. Here’s just one of the many potential investment properties in Santa Rosa.

• Property Type: Single Family Residential
• Property Neighborhood: Roseland
• Listed Property Price: $499,000
• 1,652 Sq/Ft
• $302 per Sq/Ft
• 4 Beds and 2 Baths
• Comparable Traditional Rental Income: $9,522
• Traditional Cash on Cash Return: 14.97%
• Traditional Occupancy Rate: 99%
• Short Description: So much potential for this amazing property. Living room with fireplace and open beam ceiling, formal dining room and spacious kitchen. Great backyard with beautiful weeping willow tree, separate area with in-ground pool and side yard for gardening.

For more details on this property and other long term rentals in Santa Rosa, click here.

5. Atlanta, GA

• Traditional Cash on Cash Return: 2.55%
• Median Property Price: $432,996
• Price per Sq/Ft: $519.56
• Monthly Traditional Rental Income: $1,943

Last but definitely not least is Atlanta, one of the fastest growing major cities in the country. With this comes growth for Atlanta’s real estate market. With the city’s population continuing to grow every year, investing in long term rentals is definitely the way to go. This is a real estate market filled with investment opportunity, but here’s one property which might interest you.

• Property Type: Single Family Residential
• Property Neighborhood: The Villages at East Lake
• Listed Property Price: $129,900
• 1,816 Sq/Ft
• $72 per Sq/Ft
• 4 Beds and 3 Baths
• Comparable Traditional Rental Income: $2,758
• Traditional Cash on Cash Return: 14.32%
• Traditional Occupancy Rate: 92%
• Short Description: A great home with marble countertops in kitchen and bathrooms. Thick carpets, laminate flooring. Modern kitchen with stainless steel appliances. Back deck overlooking a spacious fenced in backyard.

For more details on this property and other long term rentals in Atlanta, click here.

Related: Atlanta Real Estate 2018: Why and Where to Invest