Updated about 10 years ago on . Most recent reply
The Best Real Estate Investment Markets Last Year
Hey everyone - we thought that we'd go ahead and let you all know that we put together a to see which markets offered the best chance for regular Joe investors to get great returns over the last year or so:
We look at 0-4 unit residential properties (if you can buy a home in a given market for yourself, you can generally also purchase these types of properties) and measure them for two things:
Gross Rents as a percentage of property values in early 2014
Appreciation as a percentage of property values in early 2014
Combining the two, you can see where investor dollars likely went the farthest (before expenses). We hope that this will be useful to you as a starting point in market research!
Feel free to reach out to me or ask any questions about the study here in this thread or under the post itself!
Most Popular Reply
@Justin Ericsson,
Some markets are good for buy an hold and some markets are good to FLIP. Chicago may very well be a good flipping market, but I am not a big fan of buy and hold in Chicago ( including most of the Midwest ) as the property taxes are between 2.5 - 3% of the property value. I don't mind paying that type of crazy property taxes in Austin, Dallas Fort worth, or even Houston as I know that the properties will appreciate over time. Heck, I don't even mind paying full market price in Austin, Houston, or Dallas. Unfortunately, just don't see that type of growth happening in Chicago in the next ten years or even twenty years.
This is the primary reason I packed up my family and uprooted myself out of Chicago and moved to Atlanta. I have one investment property in the northwest suburbs (used to my primary) that I want to get out of really bad. I hope to sell to my tenant in two years and do a 1031 exchange to two properties in North Atlanta.