It’s all about that cash flow, baby.
At the right price, your rental property can bring in a lot of cash every month And Appreciate the value because you are making money. Before you start renting, you need to decide where to buy.
near you Very of the options. Should you focus on a sleepy town that will (hopefully) blow up in the next five to 10 years? Or is it best to invest in someplace that’s hot right now, cash out and enjoy some steady growth before selling? The choice is up to you…
But before applying for a loan it is worth taking a look at all the best cash flow markets in the country.
Some of the hottest cash flow markets in 2020 include:
- Austin, Texas
- Orlando, Fla.
- Dallas, Texas
- Cleveland, Ohio
- Charleston, SC
- Indianapolis, Ind.
- Pittsburgh, PA
Austin
Austin is heating up (and not just in August), according to PwC’s Emerging Trends in Real Estate 2020 report. Current residents will tell you the city has been booming over the years, but growth isn’t stopping. Absolutely, anywhere When Apple announced that they were building a new campus in this area, it continued to grow. Grab yourself some barbecue, check out some of the new condos they’re building across town, and stop by my office to say hello.
Orlando
Orlando isn’t just a place for tourists to come and go. The city’s population has increased by 20 percent in the last decade. Metro Orlando now has at least 2 million residents. As the population continues to age and more people retire, Florida is set to become the hottest place to relocate. Get ahead of the game and stop by a few theme parks to celebrate.
In its “18 Best Places to Buy Rental Property in 2020,” RealWealth Network suggests investing in Any Major Cities in Florida. Tampa and Jacksonville have frequently made lists of best places to invest in 2020, and Lakeland was ranked as the top rental market in 2019.
Dallas
Like Florida, the RealWealth Network states that you can’t go wrong investing in all of the Lone Star’s largest cities. Dallas and Houston both have impressive awards and rankings when it comes to job and population growth. Cap rates hover around 5 percent in at least two Dallas areas. The median home price sits at approximately $218,794 with an average rent price of $1,600. Everything is bigger in Texas, and your winnings can be even bigger if you invest in the right places.
Consider San Antonio, Fort Worth and Amarillo when you’re checking out Texas markets. All of these sectors have made it to some list as top cash flow markets.
Cleveland
Cleveland isn’t as hot as Austin and it has nowhere near the amount of tourists as Orlando. But not all investors want to go into markets where there is already so much demand.
Cleveland continues to grow as a city, cleaning up its act and bringing in more millennials. Accommodation is cheap! The median home price is in the easy six digits at $67,000.
Connected: How the burden of student debt affects millennial home-buying trends
charleston
There are many factors that affect whether an area is good for investment or not. Home prices, population growth and employment rates tell a story to investors who are looking to buy. North Charleston has a healthy 1.8 percent unemployment rate. This low number, combined with 16.1 percent population growth and an annual gross rental yield of 9.6 percent, tells a lovely story.
According to a report by Millionacres, the southern city is not booming like hot cities, but it can be a good place to build a strong portfolio with high returns.
Indianapolis
Indianapolis is another hardworking city with a growing population. Cheap rents are attracting many millennials away from hot markets – in eight years, the population has increased by 8 percent.
Connected: Why your rental property is not making money
According to MillionAcres data, home appreciation has risen 6.6 percent in the past year alone. It is the second largest city in the Midwest with a strong range of industries that will support its population for years to come. If you buy now, the median home price is just above $160,000.
Pittsburgh
Here’s one final option for my East Coast friends. When millennials flock to a city, investors should quickly follow. We all know that millennials prefer to rent rather than buy. Landlords are finding this more true than ever in Pittsburgh. Despite a small population decline, the Millennial population in the Steel City has grown greatly.
According to Roofstock, Pittsburgh has been slowly crawling back on the map for the past few years, and 2020 could be the year it makes it a truly hot city.
buyer beware
You can do Make bad investments in a hot market. Just because you’ve found a booming town, doesn’t mean anything is guaranteed. There’s more to your choice than just a bus Where? People are leaving.
Consider how much money you have access to investing and how to spend it wisely. Choose the right tenant. Budget your reno costs before you start flipping. A hot market is an important piece of the puzzle, but there are many more pieces to look at before we can see the full picture.
Where do you intend to invest in real estate this year? Why?
Let’s talk in the comments section below.
Note by BiggerPockets: These are the views expressed by the author and do not necessarily represent the views of BigPockets.
