The best place to invest in real estate can come in many types of rental markets. Nonetheless, they all share a purpose: positive cash flow. Here are the different real estate market features that lead to that goal.
The Best Place to Invest in Real Estate Must Be Safe and Private
As the old axiom says, safety first. It doesn’t matter whether real estate investors plan to invest in traditional or short-term investment properties, the location of a property must be safe. Just as no real estate investor wants to buy a rental property in a crime-infested location, no tenant would want to live there.
Supreme safety is a must for any rental market, especially the best ones. A similar feature to safety, however, earns extra points for the best place to invest in real estate. What is that feature? Privacy. Having gated investment properties and/or security cameras will make tenants feel more secure and private.
The Best Place to Invest in Real Estate Has a Thriving Economy
How can you plan on making money in a rental market if the location itself is not making money? Exactly, you can’t.
A rental market with a good economy does nothing but improve an investor’s chances at positive cash flow for investment properties. For starters, a strong economy in a real estate market increases the number of available tenants. This is especially true when the location of the local housing market is undergoing new developments, such as construction or openings of new factories. A great way to learn about such developments in one’s local housing market is to check with the U.S. Bureau of Labor Statistics.
Here’s another reason why a real estate market with a strong economy makes for the best place to invest in real estate: increases in value. Some developments, such as schools (which we will discuss more on later), hospitals, and others, typically lead to higher appreciation for investment properties near them. Overall, a rental market with in strong and profitable economy is a vital characteristic of the best place to invest in real estate.
The Best Place to Invest in Real Estate Is Profitable for Real Estate Investors
This is a no-brainer. The best place to invest in real estate must have high positive cash flow. But how exactly do you find out if your local housing market offers great opportunity for making money? This leads us to a topic, which could be a blog on itself, called real estate market analysis.
Related: A Step-By-Step to Real Estate Market Analysis
In a nutshell, real estate market analysis is analysis investors perform when looking to buy a rental property. The typical tool used for this analysis is what’s known as an investment property calculator. Using an investment property calculator will help real estate investors find markets and investment properties with high positive cash flow potential. If you use Mashvisor’s investment property calculator, you’ll be able to base your search on many more features, such as cash on cash return, cap rate, budget, and more.
The Best Place to Invest in Real Estate Is Usually Near or in School Districts
One of the basic premises of real estate investing is to invest in good school districts. Why is this the case? Well, investing in a good school district typically tags along all the previously mentioned features of the best place to invest in real estate. These areas are safe and profitable, and they are attractive to tenants, especially families.
This same principle applies to college districts as well. As a matter of fact, renting to college students is often more profitable for real estate investors. If you want to know why, just click on that handy link down below.
Related: The Guide to Renting to College Students
The Best Place to Invest in Real Estate Does Not Have Legal Issues
When you buy a rental property in your local housing market, knowing the legality of the process is very important. Oftentimes legal aspects are more significant when renting out a rental property, as opposed to buying one.
The best place to invest in real estate has little-to-no legal issues. That’s because legal issues could impact the ability of a property when making money. Some investors, for instance, may want to rent out a room of a property to earn some extra bucks. However, some cities restrict or ban renting out rooms.
Nowhere is legality most important in real estate investing than with Airbnb. On the national level, Airbnb’s legal status ranges. Some cities, like Cleveland and Dallas, do not restrict the short-term rental strategy at all. Other cities, like NYC, have completely banned Airbnb investment properties. Always be sure to understand the legality of Airbnb in a certain real estate market before investing.
Related: Cities with the Least Airbnb Legal Issues
The Best Place to Invest in Real Estate Provides Easy Access to Commercial Districts
Whether a real estate investor rents out through Airbnb or traditional rentals, being close to commercial areas is vital. For traditional tenants, being close to such areas means spending less time going to areas to carry out day-to-day functions. For Airbnb guests, it helps improve the quality of a vacation stay. A feature of the best place to invest in real estate is providing access to, but not being directly in, urban and commercial areas.
The Best Place to Invest in Real Estate Offers Great Scenery
Never underestimate the power of great scenery. Investment properties that offer beautiful views can be rented out for more. They could even appreciate at higher rates due to great scenery. When a location provides such views, like a beach or creek, the chances of more rent and appreciation magnify for properties.
Location is the absolute key to success when investing in a rental market. If your local housing market has these features, it’s likely to yield success for your investment properties. To find the best place to invest in real estate in any location, be sure to start your trial with Mashvisor!