Multi-family properties are great investments for cash flow, equity, and portfolio growth. However, the location of your investment property determines your ROI and cash flow. To help you make better location choices for your investments, here are six cities you can invest in multi-family property in the United States
Located in Florida’s sunniest region with an increasing population of around 2.5 million, Orlando is one of the best places to buy rental property in 2019. The most interesting thing about this city is that despite the low home prices, people are still choosing to rent.
The great weather and the exceptional health care services offered in the state attracts more people, raising the demand for rental property. On the other hand, the city’s law is favorable to property owners. For example, property taxes and insurance is low and affordable.
This city is a great place for investors interested in buy-and-hold properties. The investment properties are affordable and the demand for this investment type is increasing. Properties in Memphis are typically below the national median price, with the demand increasing this isn’t expected to stay this way for long. It is a great time to invest.
According to recent statistics, Memphis has a relatively young population. The lower barrier to entry has allowed this space to become populated with a lot of the industry’s up-and-comers. Because of this, Memphis has become a hotspot for both long- and short-term investments. It is considered one of the best real estate markets now and this is projected to continue beyond 2019.
Trenton, New Jersey
Trenton is located along New Jersey’s east coast. The location of the city makes it a hub for investors. The city is located near a major airport, variety of industries and one of the largest Metro area’s in the USA, New York City. So, we believe it is a better location to invest in real estate, especially multi-family homes. Social amenities like schools, worship centers, parks and gardens, and gyms, are well located throughout the city.
Moreover, the purchase price of properties (especially multi-family homes) is affordable. The median property price as of January 2019 is $108,826 while the price per sq/ft is $55, and the average monthly rental income is $1,391. This means you can buy a property for less and continue to have a higher ROI on your investments.
Columbus, the capital of Ohio and the largest city in the state, has a population of over 2.1 million people (based on 2018 estimation). Also located in the city are large organizations like the Battelle Memorial (the largest private research and development foundation in the world), and the Ohio state university, which is the third largest university campus in the U.S. Columbus is also considered the most technologically sophisticated city in the United States.
With a 0.83% yearly job growth rate and a 36.36% 6-year growth rate, the city is one of the best places for multi-family investments. Apart from being a great city in terms of industrial location, and economic growth, the city offers a great opportunity to real estate investors who want affordable investments, equity growth, and monthly cash flow among others.
St. Louis, Missouri
St. Louis is populated with over 2.1 million people. Its inexpensive housing market, stable economy, growing technology hub, and large population make it a popular city among real estate investors. In fact, the average home price is $176,000 and the median rent per month is $1,269.
Choosing places to invest depends on three factors: Job growth, population, and financial viability. St. Louis is no exception to these three. Its economic growth statistics include 0.72% increase in annual job creation, a 5-year growth rate of 27%, and a 0.63% 6-year population growth between 2018 and 2019. Another factor that makes the city a popular investment hub for both multi-family and single-family investments is that about 32% of the populations are renters.
Detroit, also known as the Motor City, is the largest city in Michigan with about 4.3 million people. The city is known as the automotive capital of the world serving as home to automotive firms like Ford Motors, General Motors, and Chrysler. Detroit’s economic statistics show the city has great potential for real estate investments with high ROI. The annual job growth rate is 0.76% while the 6-year growth rate and the 7-year population growth is 69% and 0.5% respectively.
Moreover, major attractions like the Detroit Tigers, University of Michigan, Fox Theater and the new bridge to Canada under construction will continue to bring more people into the city, increasing the demand for housing for years to come.