Many aspiring under market value property investors cannot buy properties that generate cash flow in their area. San Franciscans and Seattlites, you know what I’m saying right!?
So, many under market value property investors want to diversify their investment property portfolios by investing in below market value properties in other parts of the country. But where are the best cities to invest in real estate for out of state investment property?
Below are some of the best cities to invest in real estate, in my opinion.
Of course, I live and work in San Antonio, and I am a bit biased. But I financially retired at age 28 with under market value properties in San Antonio TX – so please indulge me. Real estate investment properties San Antonio rock because of the following:
- Strong job market – there are many types of industry here – oil and gas, military, technology, and all kinds of international corporations attracted to the pro business environment, low taxes and lack of red tape in Texas.
- Strong population growth: San Antonio is one of the fastest growing cities in the US.
- Hard working renters and buyers: We have a large population of blue collar Hispanics here, and they make great renters and buyers.
I usually make 10-13% ROI on my owner financed investment properties in San Antonio TX, with an initial cost of $50,000 to $60,000. This makes San Antonio one of the best real estate investment cities for out of state investment property.
Dallas also has a very strong economy and relatively low real estate costs, compared to California. Dallas also sees strong price appreciation, and strong rents compared to property values. Many investors in Dallas can earn almost a 20% return for under market value residential real estate – not bad! Also one of the best real estate investment cities.
I know several investors who have done very well in Kansas City turnkey properties. Prices in this Midwest city are very low and the population is growing quickly. I know people doing well with out of state investment property in Kansas City.
I also know a bunch of under market value property investors who moved into the Milwaukee market because of rock bottom real estate prices and fairly high rents. If you need a reference for Milwaukee turnkeys, let me know; I know some good ones.
I have read that Charlotte is going to be seeing strong appreciation in the next five years. This could cause your initial costs for investment property to be higher, but if you want appreciation, this could be a good bet. I also know good turnkey companies here.
In short, there are many excellent cities to invest in real estate, you just need to find a good, reliable team on the ground. I know a lot of real estate investors around the country, and am always happy to provide a referral.
No blog post of mind about under market value property would be complete without a picture of our mascot Teddy 🙂