Investor BlogsWhere to Invest in Real Estate for Affordable Investment Properties by Sylvia Shalhout March 17, 2018February 12, 2019 by Sylvia Shalhout March 17, 2018February 12, 2019The US housing market 2018, while booming, is making it hard for real estate investors to decide exactly where to invest in real estate this year.While there are many great real estate markets all across the board, many of the best cities to invest in real estate for 2018 just don’t have affordable investment properties for the average real estate investor.Attempting to find affordable investment properties that will still bring a good return on investment can be difficult and time consuming. That’s why (with the help of Mashvisor’s investment property calculator) we can show you where to invest in real estate for affordable investment properties in 2018.Housing Prices 2018: Just What Is Going on?Real estate news is buzzing about the housing prices and inventory in the 2018 real estate market. So, what is going on and how does it affect where to invest in real estate?According to realtor.com, the national median house price has gone up significantly in the month of February. Based on real estate market statistics they’re seeing now, the experts over at realtor.com are saying “Home prices (are) set to reach new highs this spring”. Let’s take a look at the numbers of the national real estate market for February provided by realtor.com:Median House Price: $275,000Days on Market: 83 daysActive Listings: 1.25 millionTo get a better idea of what the real estate market is facing, review the statistics from a month before, in January:Median House Price: $269,500Days on Market: 89 daysActive Listings: 1.23 millionAlready in the first two months of the year, the median house price has risen, and it’s not stopping there.Another factor to note is the days on market. Investment properties are being sold at a fast rate and are trending to be even faster as the year moves forward. Along with the housing inventory shortage, this spells out a seller’s market. When looking where to invest in real estate, most locations in the housing market will be unfavorable for buying investment property.While the housing inventory did increase somewhat in February (with around 422,000 new listings across the US real estate market), it’s still 8% lower than it was this time last year. The increase hasn’t aided in lowering house prices or slowing the growth!This information might stop some real estate investors from trying to locate where to invest in real estate for 2018 and buying investment property. They’d be missing out on making money in real estate this year. Instead, why not look for affordable investment properties that you can still get a great return on investment from? These amount to being the best real estate investments, no matter the condition of the real estate market.To start looking for and analyzing the best investment properties in your city and neighborhood of choice, click here.Why Knowing Where to Invest in Real Estate 2018 Will Make All the DifferenceFinding affordable real estate investments is one thing, but finding them in a great location for real estate investing is a whole other challenge. Cheap real estate investments or below market value investment properties can be a great deal in terms of a return on investment. However, if they are not in a good location for making money in real estate and getting a return on investment, forget about them!The best real estate investments are both affordable and lucrative. They should have a good cash on cash return as well as a good cap rate for real estate investing. These two real estate analysis metrics depend not only on the investment property but heavily on the location in the real estate market.When deciding where to invest in real estate for success, a real estate investor also has to choose the right real estate investment strategy that will work for the investment property and the location. Comparing the potential return on investment of Airbnb rentals to traditional, long-term rentals will help a real estate investor make this decision.Related: 10 Most Profitable Airbnb Locations for Cash on Cash ReturnBelow is the list of where to invest in real estate for affordable investment properties in 2018. You’ll find not only the city but the exact neighborhood of where to invest in real estate.Where to Invest in Real Estate 2018 for Affordable Investment PropertiesMashvisor’s investment property calculator has returned 17 locations in the US housing market that not only have a median house price below the national price but also have a cash on cash return/cap rate close to ideal for either of the real estate investment strategies.Orlando, FLMillenia Median House Price: $115,000Monthly Airbnb Rental Income: $2,266Airbnb Rental Cap Rate: 11.72%Airbnb Rental Cash on Cash Return: 11.72%Monthly Traditional Rental Income: $1,078Traditional Rental Cap Rate: 2.22%Traditional Rental Cash on Cash Return: 2.22%Best Real Estate Investment Strategy: Airbnb RentalsLas Vegas, NVRancho CharlestonMedian House Price: $239,900Monthly Airbnb Rental Income: $2,575Airbnb Rental Cap Rate: 6.6%Airbnb Rental Cash on Cash Return: 6.6%Monthly Traditional Rental Income: $1,376Traditional Rental Cap Rate: 3%Traditional Rental Cash on Cash Return: 3%Best Real Estate Investment Strategy: Airbnb RentalsHuntridgeMedian House Price: $193,250Monthly Airbnb Rental Income: $2,151Airbnb Rental Cap Rate: 7.38%Airbnb Rental Cash on Cash Return: 7.38%Monthly Traditional Rental Income: $934Traditional Rental Cap Rate: 1.67%Traditional Rental Cash on Cash Return: 1.67%Best Real Estate Investment Strategy: Airbnb RentalsWinchesterMedian House Price: $225,000Monthly Airbnb Rental Income: $2,334Airbnb Rental Cap Rate: 7.55%Airbnb Rental Cash on Cash Return: 7.55%Monthly Traditional Rental Income: $1,112Traditional Rental Cap Rate: 2.55%Traditional Rental Cash on Cash Return: 2.55%Best Real Estate Investment Strategy: Airbnb RentalsMichael WayMedian House Price: $199,999Monthly Airbnb Rental Income: $2,151Airbnb Rental Cap Rate: 7.65%Airbnb Rental Cash on Cash Return: 7.65%Monthly Traditional Rental Income: $934Traditional Rental Cap Rate: 2.12%Traditional Rental Cash on Cash Return: 2.12%Best Real Estate Investment Strategy: Airbnb RentalsTampa, FLSeminole HeightsMedian House Price: $209,000Monthly Airbnb Rental Income: $2,187Airbnb Rental Cap Rate: 6.63%Airbnb Rental Cash on Cash Return: 6.63%Monthly Traditional Rental Income: $1,082Traditional Rental Cap Rate: 1.61%Traditional Rental Cash on Cash Return: 1.61%Best Real Estate Investment Strategy: Airbnb RentalsHistoric YborMedian House Price: $162,500Monthly Airbnb Rental Income: $1,910Airbnb Rental Cap Rate: 6.44%Airbnb Rental Cash on Cash Return: 6.44%Monthly Traditional Rental Income: $1,162Traditional Rental Cap Rate: 3.07%Traditional Rental Cash on Cash Return: 3.07%Best Real Estate Investment Strategy: Airbnb RentalsRelated: Top 5 Reasons to Invest in Tampa Real EstateKansas City, MOWestside NorthMedian House Price: $250,000Monthly Airbnb Rental Income: $2,426Airbnb Rental Cap Rate: 6.25%Airbnb Rental Cash on Cash Return: 6.25%Monthly Traditional Rental Income: $1,301Traditional Rental Cap Rate: 2.01%Traditional Rental Cash on Cash Return: 2.01%Best Real Estate Investment Strategy: Airbnb RentalsColumbus, OHIndianola TerraceMedian House Price: $149,900Monthly Airbnb Rental Income: $1,352Airbnb Rental Cap Rate: 4.8%Airbnb Rental Cash on Cash Return: 4.8%Monthly Traditional Rental Income: $1,554Traditional Rental Cap Rate: 6.1%Traditional Rental Cash on Cash Return: 6.1%Best Real Estate Investment Strategy: Traditional RentalsSouth Side CANMedian House Price: $170,000Monthly Airbnb Rental Income: $1,651Airbnb Rental Cap Rate: 6.73%Airbnb Rental Cash on Cash Return: 6.73%Monthly Traditional Rental Income: $700Traditional Rental Cap Rate: 0.7%Traditional Rental Cash on Cash Return: 0.7%Best Real Estate Investment Strategy: Airbnb RentalsSouthsideMedian House Price: $119,900Monthly Airbnb Rental Income: $1,219Airbnb Rental Cap Rate: 6.35%Airbnb Rental Cash on Cash Return: 6.35%Monthly Traditional Rental Income: $697Traditional Rental Cap Rate: 1.46%Traditional Rental Cash on Cash Return: 1.46%Best Real Estate Investment Strategy: Airbnb RentalsRelated: Now is The Time to Invest in Airbnb Columbus, OhioJoshua Tree, CAMedian House Price: $199,000Monthly Airbnb Rental Income: $2,198Airbnb Rental Cap Rate: 6.78%Airbnb Rental Cash on Cash Return: 6.78%Monthly Traditional Rental Income: $991Traditional Rental Cap Rate: 1.71%Traditional Rental Cash on Cash Return: 1.71%Best Real Estate Investment Strategy: Airbnb RentalsFort Lauderdale, FLOak River HomeownersMedian House Price: $259,750Monthly Airbnb Rental Income: $2,974Airbnb Rental Cap Rate: 8.33%Airbnb Rental Cash on Cash Return: 8.33%Monthly Traditional Rental Income: $1,437Traditional Rental Cap Rate: 2.81%Traditional Rental Cash on Cash Return: 2.81%Best Real Estate Investment Strategy: Airbnb RentalsBaltimore, MDPleasant View GardensMedian House Price: $148,900Monthly Airbnb Rental Income: $1,488Airbnb Rental Cap Rate: 5.19%Airbnb Rental Cash on Cash Return: 5.19%Monthly Traditional Rental Income: $1,813Traditional Rental Cap Rate: 7.29%Traditional Rental Cash on Cash Return: 7.29%Best Real Estate Investment Strategy: Traditional RentalsHeritage CrossingMedian House Price: $132,500Monthly Airbnb Rental Income: $1,263Airbnb Rental Cap Rate: 4.44%Airbnb Rental Cash on Cash Return: 4.44%Monthly Traditional Rental Income: $1,507Traditional Rental Cap Rate: 6.21%Traditional Rental Cash on Cash Return: 6.21%Best Real Estate Investment Strategy: Traditional RentalsRidgely DelightMedian House Price: $135,500Monthly Airbnb Rental Income: $1,789Airbnb Rental Cap Rate: 6.58%Airbnb Rental Cash on Cash Return: 6.58%Monthly Traditional Rental Income: $1,347Traditional Rental Cap Rate: 4.03%Traditional Rental Cash on Cash Return: 4.03%Best Real Estate Investment Strategy: Airbnb RentalsAnaheim, CAPlatinum TriangleMedian House Price: $139,500Monthly Traditional Rental Income: $2,257Traditional Rental Cap Rate: 12.25%Traditional Rental Cash on Cash Return: 12.25%Best Real Estate Investment Strategy: Traditional RentalsNote: Cash on cash return and cap rate are equal, as investment property financing cannot be accounted for. If you want a cash on cash return unique to your investment property financing, use Mashvisor’s investment property calculator and enter in your information.Once you’ve reviewed the list, use Mashvisor’s investment property finder to easily find an investment property in the location of your choice.To start your 14-day free trial with Mashvisor and subscribe to our services with a 20% discount after, click here.Now that you know where to invest in real estate for affordable investment properties, what are you waiting for? If you buy an investment property now, you’ll benefit from the rising appreciation and get a great return on investment if you choose to sell. Don’t miss out! Start Your Investment Property Search! START FREE TRIAL Start Your Investment Property Search! START FREE TRIAL Affordable MarketsColumbus OHFort Lauderdale FLJoshua Tree CAKansas City MOOrlando FL 0FacebookTwitterGoogle +PinterestLinkedin Sylvia ShalhoutSylvia is the Content Marketing Manager at Mashvisor. As a real estate writer, she has been covering topics for the beginner and advanced real estate investor, helping them make smarter decisions as well as real estate agents looking to take their business to the next level. Previous Post Investing in Rental Property Is the Best Way for Making Money in Real Estate Next Post Cash on Cash Return Calculator Tells You More Than Just Numbers Related Posts Best Investment Strategy Tips from Recognized Investors Real Estate Comp Analysis in 4 Steps 3 Steps to Estimate Airbnb Rental Income How to Succeed as a Real Estate Developer Evicting a Tenant: A Guide for the First-Time Landlord How to Choose Rental Strategy: Finding Income Properties Using a Heatmap 7 Real Estate Numbers Every Investor Needs for Analyzing Investments How Do You Find the Best Places to Invest in Property in the US Real Estate Market? 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