Best Cities for Rental Property Investment

General Landlording & Rental Properties
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Best Cities for Rental Property Investment

Sanjeev Kumar
Member since 2021 · 2 posts · 6 votes

I am new to investment and seeking advise. What are the top cities for rental property investment? Below are some of my criteria for investment.

  • Investment < 300K house
  • Generate cash flow
  • Areas that are projected for decent house price appreciation in next 10 years.

Thanks in advance!

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Jason Hirko
Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
5y

Easy - San Antonio!

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  • Will FraserPro Member
    Real Estate Broker · Salt Lake City & Oklahoma City · Member since 2018 · 3k+ posts · 2k+ votes
    5y

    Hi @Sanjeev Kumar, welcome back to the Biggerpockets forums!  There are many cities that could be recommended here and MANY different factors one could consider.   Atlanta could be a good larger metro to invest in for you, or towns like Oklahoma City, Tulsa, and several towns in Ohio could fit this bill.  Otherwise, if you're keen on small town investing there is an even larger list of small towns that could appreciate and cashflow over the next decade.

    What other factors are important to you, aside from price, appreciation, and cashflow?  Also, with cashflow, what type of cashflow makes a deal appetizing for you?

    2Reply
  • Brenden MitchumBusiness Member
    Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
    5y

    Hey @Sanjeev Kumar, welcome to the BP Community!

    I would say Atlanta definitely fits the mold for you. The market is beyond hot right now (like many in the U.S.). However, with the right strategy, you can definitely still find cash flow here. And, with so many people and businesses moving into the area, 10-year appreciation is a sure bet (baring any nationwide recession). 

    That being said, if you are investing from OOS, building your team here in Atlanta is so important. You need folks who are successful in the investing space right now because things have changed quite a bit here over the past year. That's my best piece of advice for you. Network with as many ATL investors/professionals as you can and pick their brains. See what they're currently doing - what's working and what's not. 

    This advice goes for any OOS market you choose, but make sure you do choose one and stick with it. The surest way to flounder as a new OOS investor is to bounce between multiple markets and not focus in on any single one. 

    Hope this helps a bit! Please, feel free to reach out anytime if you have other questions or just want to chat about the Atlanta market!

    [email protected]404-737-0018
    2Reply
  • Michael Dumler
    Real Estate Agent · Atlanta, GA · Member since 2020 · 1k+ posts · 1k+ votes
    5y

    @Sanjeev Kumar saw a very similar post the other day. From my experience and networking... generally your south east and mid west states posses affordable housing (150-200k) that cash flow. Also, make note of state laws that are landlord favored. Not to be biased, but Georgia is a landlord friendly state that many out of state investors look into. Overall, I think it's extremely important for you to first identify your criteria and then pick your target market. Once you have your market selected, stick to it like a pro. I have worked with several individuals that try to broaden their net by selecting multiple markets. While this may seem beneficial, it's quite counterintuitive and hurts them in the long run. As many other BP enthusiast mention, wherever you invest, it's essential that you form your core four (RE agent, contractor, property manager, lender). Hope this helps.

    3Reply
  • Jacob Maes
    Real Estate Agent · Dallas, TX · Member since 2020 · 92 posts · 46 votes
    5y

    Hey Sanjeev! I would agree with what the others are saying, for properties like what you're looking for, the midwest isn't terrible. Cash flow will be strong but appreciation might not be the greatest. I would Google the U.S. census for areas you're interested in to see what the increase in population has been as that will help tell you if people are moving there and you can try to scoop up some property before other investors do. 

    1Reply
  • Jonathan GreeneBusiness Member
    Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
    5y

    Questions that are this broad aren't going to help you and if you are asking where in an entire country you should invest your money, you should not be investing your money that way. Where have you lived? Where do you have friends and family? Where have you gone to school? These areas would give you a competitive advantage against other areas. Sure, people can say the south or the midwest, but that's still way too huge for someone looking to invest. You can find what you want in most states somewhere, but it's about management, appreciation, knowledge, boots on the ground, and risk tolerance.

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    3Reply
  • Frank Rodrigues
    Investor · Kansas City, MO · Member since 2021 · 110 posts · 65 votes
    5y

    @Sanjeev Kumar I can only speak about the areas I have worked in and from my experience the KC market along with OH has been great in getting double-digit returns. Let me know if you have any questions about these two markets.

    1Reply
  • Jason Hirko
    Lender · San Antonio, TX · Member since 2016 · 1k+ posts · 1k+ votes
    5y

    Easy - San Antonio!

    3Reply
  • Niraj S.Pro Member
    Real Estate Agent · Cumming, GA · Member since 2016 · 74 posts · 10 votes
    5y

    @Brenden Mitchum Thanks for your insight about Atlanta. Are there any specific areas of Atlanta you recommend? Or do you even suggest any suburbs of Atlanta?

    0Reply
    • Brenden MitchumBusiness Member
      Rental Property Investor · Atlanta, GA · Member since 2019 · 1k+ posts · 872 votes
      5y
      Originally posted by @Niraj S.:

      @Brenden Mitchum Thanks for your insight about Atlanta. Are there any specific areas of Atlanta you recommend? Or do you even suggest any suburbs of Atlanta?

      @Niraj S. This completely depends on your strategy of choice and how well capitalized you are. Plenty of investors finding success throughout the entire MSA.

      Shoot me some more info about you and your investing criteria and I can give you a better answer! 

      [email protected]404-737-0018
      0Reply
  • Daniel Umstead
    Realtor · Philadelphia, PA · Member since 2009 · 107 posts · 69 votes
    5y

    @Sanjeev Kumar To add on to my fellow BP experts here, you have to go with your comfort level as well, Atlanta is great but you might find yourself more comfortable in places like San Antonio or even Memphis. Rentals are everywhere, go with what you're looking for and comfortable with.

    2Reply
  • Allen Wu
    Rental Property Investor · Member since 2021 · 335 posts · 193 votes
    5y

    @Sanjeev Kumar

    San Antonio, TX.

    1Reply
  • Blake Dailey
    Investor · Ogden, UT · Member since 2018 · 295 posts · 208 votes
    5y

    I like primary and secondary markets around the Gulf Coast of Florida like the Tampa area, Panama City and Panama City Beach, and further west to Pensacola. All of these areas are growing with jobs, population and net migration. You can still get in for decent purchase prices and experience above average appreciation, with good price-to-rent ratios. And they have multiple economic drivers and solid tourism so long term and short term rentals both work well here. I definitely plan to continue buying in these markets!

    2Reply
  • Kyle Momany
    Real Estate Agent · Tampa, FL · Member since 2018 · 144 posts · 132 votes
    5y

    Blake hit the nail on the head! The Gulf Coast (Panama City - Pensacola)  seems to have great returns. On the micro side-  Inlet Beach, Destin, West PCB all have different growth opportunities going on right now.  I always say Short Term Rentals are the best returns, if that's something that would interest you I highly recommend the above mentioned areas. The management up front can take some time but after the systems are in place, it becomes pretty automated.  Best of luck to you!

    3Reply
  • Tom O'Stasik
    Real Estate Agent · Tulsa, OK · Member since 2019 · 130 posts · 66 votes
    5y

    @Sanjeev Kumar Tulsa!

    1Reply
  • Manish Agarwal
    Charlotte, NC · Member since 2019 · 13 posts · 2 votes
    5y

    @Sanjeev Kumar

    Greensboro NC

    0Reply
  • Harish Kumar
    Member since 2019 · 15 posts · 2 votes
    5y

    @Brenden Mitchum, Like to touch base with you and see how you can help in building strategy for my case.

    0Reply
  • Account Closed
    Investor · Scottsdale Austin Tuktoyaktuk · Member since 2021 · 4k+ posts · 4k+ votes
    5y
    Originally posted by @Blake Dailey:

    I like primary and secondary markets around the Gulf Coast of Florida like the Tampa area, Panama City and Panama City Beach, and further west to Pensacola. All of these areas are growing with jobs, population and net migration. You can still get in for decent purchase prices and experience above average appreciation, with good price-to-rent ratios. And they have multiple economic drivers and solid tourism so long term and short term rentals both work well here. I definitely plan to continue buying in these markets!

     We were just stayed in your area (30a) and left the day before Ida blew in. Was there much damage or it still as charming as before?

    0Reply
  • Ellis San Jose
    Specialist · Westlake Village, CA · Member since 2010 · 1k+ posts · 781 votes
    5y

    If you are new, I would focus on a 2 hr radius of where you live & pick a market that is stable.  Take the time to hone your skills to find below market price opportunities. It's dangerous to pick a "best city" today to own one rental house without having the ability to watch over it carefully & develop deep knowledge of an area.  I have bought properties at a discount from disenchanted new investors who thought the could just buy a rental property & hire a management company to do the rest.

    0Reply
  • Stephen Brown
    Real Estate Broker · Huntsville, AL · Member since 2019 · 1k+ posts · 872 votes
    5y

    I'd say check out the western Toledo suburbs. We've got some great rentals here and people love the area. There's a lot of long term renters here and the rent to price ratio is pretty good.

    0Reply
  • Blake Dailey
    Investor · Ogden, UT · Member since 2018 · 295 posts · 208 votes
    5y

    @Account Closed the Panhandle just got a lot of rain but no real damage to speak of thankfully. 

    1Reply
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