An important factor that is an essential part of being a successful landlord is the ability to grow your property portfolio with profitable rental properties. Forbes together with Local Market Monitor analyzed markets across the country to determine which rental and real estate markets are currently undervalued and subsequently would be great to invest in (see the full list of where to invest in).
Dallas: The Dallas real estate market is currently under-priced by 3% compared to the city’s historical average property value. Prices for homes are forecasted to increase by 31% over the next three years due to strong job growth and population growth.
Florida: Florida has several cities whose properties are undervalued because of the financial crisis that heavily impacted the Floridian housing market. In areas such as Jacksonville, Orlando, West Palm Beach and Tampa the economy has improved while real estate prices have stayed low. It is therefore, no surprise that these cities have found themselves in the top 10 cities to invest in, in 2017 as houses may be undervalued by as much at 20%.
Texas: Texas ranks second behind Florida in the number of cities it has on the list of cities to invest in, in 2017. Texas was also hit hard by the financial crisis however it has been adding jobs faster than any other state in the country and is, therefore, likely to see a huge demand for housing shortly.
Major housing markets like San Francisco, New York City and Los Angeles did not make the cut as places to invest in, in 2017 because they are too expensive due to scarcity in the market. While there are certainly potential properties in areas listed to invest in that does not mean that there may not be good opportunities for potential real estate investments in more expensive markets. In addition to ensure the continued success of your rental property business vet any properties, you are interested in purchasing by researching the area, the potential rental income, and cost to upgrade or repair the property before you purchase it.
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Disclaimer: The information provided in this post in not intended to be construed as legal advice, nor should it be considered a substitute for obtaining individual legal counsel or consulting your local, state, federal or provincial tenancy laws.