Top 5 Major Cities for Buy-and-Hold Investment Properties

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Top 5 Major Cities for Buy-and-Hold Investment Properties

Transcript of Top 5 Major Cities for Buy-and-Hold Investment Properties

Top 5 Major Cities forBuy-and-Hold Investment Properties

We analyzed over 20 major U.S. cities’ average cash on cash returns and then selected the top cities and

neighborhood with the highest returns based on number of listed properties and some other statistics.

1. AtlantaAtlanta is headquarters for some of the most well-known companies making it a great job market and attractive to money-making tenants.

Buying an income property in Atlanta could be a dream for investors with the low home prices and highly educated, employed tenants in 2015, investors made 16.5% returns in 2015 from a mix of cash flow and appreciation.

City Average Traditional CoC Return: 6.58%

City Average Airbnb CoC Return: 10.04%

Top Neighborhood: Lindridge - Martin Manor

Neighborhood Average Traditional CoC Return: 12.08%

Neighborhood Average Airbnb CoC Return: 17.73%

Related: How To Live For Free in the Most Expensive City in America

1. Atlanta

2. Saint LouisSt. Louis is also home to several big companies including Enterprise Rent-A-Car and Express Scripts. In 2015, St. Louis was listed as a one of the top 10 cities for creating a startup company based on capital, affordability, early-stage success, and community.

St. Louis has one of the best markets for property tax at a low 0.43%. Investors here can expect to appreciate well. If you’re considering St. Louis, act now because the market is picking up.

City Average Traditional CoC Return: 4.28%

City Average Airbnb CoC Return: 14.33%

Top Neighborhood: Old North St. Louis

Neighborhood Average Traditional Coc Return: 17.41%

Neighborhood Average Airbnb CoC Return: 28.22%

2. Saint Louis

3. Las VegasLas Vegas has certainly become a real estate icon in recent years, for several reasons. Firstly, properties are “cheap.”

The market in Vegas has been stable in the past five years, and local and international investors have been taking advantage of the buy-and-hold market. The high rental rates could be the underlying reason to why short-term renting on Airbnb has been very lucrative for Airbnb investment properties in Vegas.

City Average Traditional CoC Return: 3.53%

City Average Airbnb CoC Return: 11.97%

Top Neighborhood: Downtown

Neighborhood Average Traditional CoC Return: 8.91%

Neighborhood Average Airbnb CoC Return: 17.13%

Related: 6 Reasons For The Growth Of The Airbnb Investment Property

3. Las Vegas

4. CharlotteIn late 2015, Home Union completed a study revealing the top 10 investment markets for single-family rentals. Charlotte, aka,“Queen City” was listed as #1 because of the job market growth. The city also ranked #21 in investment home price and #27 in gross rental yield.

Charlotte is also a major financial city. You might be surprised to know that Charlotte is now the second largest banking center in the U.S. after New York City.

City Average Traditional CoC Return: 2.95%

City Average Airbnb CoC Return: 8.87%

Top Neighborhood: Revolution Park

Neighborhood Average Traditional CoC Return: 9.74%

Neighborhood Average Airbnb CoC Return: 47.44%

4. Charlotte

5. Washington, D.C.Half a million dollars might buy a nice one-bedroom apartment in D.C. or you could rent it for $2,500/month. High rental rates can mean big returns for investors. In the D.C .and Northern Virginia area, there are over a dozen colleges and universities with students digging for off-campus housing.

It’s also a touristy city which means an optimal location for an Airbnb investment property. Investors who bought properties in 2009 did well but the opportunities are a bit harder to find these days, but are still out there.

City Average Traditional CoC Return: 2.81%

City Average Airbnb CoC Return: 4.33%

Top Neighborhood: Skyland

Neighborhood Average Traditional CoC Return: 14.52%

Neighborhood Average Airbnb CoC Return: 38.36%

Related: Real Estate Investing Beyond the 20 Mile Radius

5. Washington, D.C.

Mashvisor provides analytics for any city you inquire about when on your property search. If you can’t find your city on our website, you

can request data by emailing [email protected].

We’ll help you find the highest performing neighborhoods, properties, and optimal rental strategy based on the comparative and

predictive data in your area.

https://www.mashvisor.com/