Where to Invest? Which Cities?

Should you follow everyone and invest in the hot appreciating markets the media and everyone talks about?  The media has a much different approach in that they look at hot markets speculatively as ones that will appreciate, our approach is much different.  I previously wrote on the topic where to invest and identified many smaller cities, the Midwest and OH as areas that hit on all 4 of my criteria:  Little chance of depreciation, lots of available deals, low competition, multiple exit strategies.  Here I will identify specific cities that have an oversupply of opportunity for savvy investors.

Probability of depreciation – If you haven’t heard of PMI, Private Mortgage Insurance, let me introduce you.  PMI provides insurance to lenders to protect them from buyers who default.  PMI also applies leading research, analytics, and pricing principles to manage risk concentration, and release a monthly market review and quarterly Market Risk Index report.  The PMI U.S. Market Risk Index score translates to a percentage that predicts the probability that house prices will be lower in two years.  Based on this report many of the hot areas during the boom such as CA, Vegas, FL, etc have a High probability of lower home values in 2 years.  However, many areas of OH, TX and the Midwest have Minimal risk rank.

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