The Best Types of Cities for Investing in an Investment Property

Real estate has made many of the world’s wealthy people, so there’s no question that good investment properties can net a huge payoff down the road. Put your money to work for you.

When you’re young and only have a little to invest, it can get hectic trying to figure out where’s the best place to keep your money.

Typically the safe bet you want is a balance of security and a reliable return on your initial investments – you’re looking to build a foundation.

 

But like any investment, it's better to arm yourself with as much information as you can before diving in with your hard earned money.

Avoiding "It" Cities.
You already know the drill, if its mainstream, you missed the come-up. Cities that are “hot” right now such as Austin, Portland, Brooklyn are great places to live. People are moving to them in droves, and if they aren’t already moving there it seems like they are at least dreaming about it.

But the developers are already there, fanning the flames and buying up every desirable investment, or at least that's how the conventional wisdom goes.

Saturated Market Cities.
Places like, Chicago, San Francisco, and Atlanta can be quite a big pool to jump in for a young investor looking to get their bearings. Typically real estate in these markets come with a high price tag - well over the national average for what you get in regards to square footage and amenities. Saturated Markets are the first to stagnate before dropping in a market correction.

With that said though, the saturated market cities typically have good opportunities for “fixer-uppers” in transitional neighborhoods. This can be a great way to get started with investment properties, especially if you have a knack for DIY and home repair and can reduce the cost of labor required to put the home back on market.

Small Growing Cities.
Some of the most successful real estate investors keep their focus on the small cities that are hitting a growth spurt. Keeping an eye on things like distribution centers, manufacturing plants, higher education will help keep you in ‘the know’ for which towns are about to start booming. Some of the best moments to invest in a small city is during the point in which the city is in a transitional phase between a manufacturing economy and an information technology-based economy. As a general trend, this seems to happen right before the old neighborhoods become gentrified and lead way to some great investments returns.

Start off Close to Home.
Your ability to effectively maintain and manage your investment properties will greatly depend on your proximity to them. Unless you intend to lose out a sizeable chunk of your profits and hire a professional management company to oversee your rental properties, it typically makes sense to invest in your general vicinity.

Run the numbers, then run the numbers again.
Savvy investors might carry some debt as part of their investment portfolio, but for the average person - that should be avoided. If you have student loans, unpaid medical bills, make sure you have those covered before investing.

Run your numbers, make sure that you still have some sort of safety net after the downpayment and expenses of your investment. Make sure to give yourself some financial wiggle room, and when you’re done, check those numbers one more time.

 

A great place to start.

Myrtle Beach is a great place to get your feet wet with investment properties. A vast influx of visitors and seasonal residents mean the rental market is always robust. Add that with the fact that our prices are some of the lowest along any of the coastal regions and you find a good opportunity for success as a real estate investor. Use our Advanced Search options to find a property that fits your requirements, or call us. Many of our agents are seasoned real estate investors, and they're always happy to share that knowledge with young investors.

843.424.6900