New to this forum and the subject, thanks in advance for your expertise.
I am looking to invest around $200,000 in rental property.
can you direct me to best cities I should look at?
distance from your home is irrelevant, but I will be far…
supply of potential tenants, average rents you can collect and the ability of tenants in that area to pay you, all these are top concerns. I always thought College towns are great as demand should be high… is it the case?
Will much appreciate your advice as to best cities or towns to look for, as the objective is best ROI with a sensible crowd.
From what it sounds like, you’re looking for a stable investment in a good neighborhood that attracts strong quality tenants. First, you should be looking for investment opportunities near you, especially while you’re new. Second, if you’re investing areas around where you live, you should already know the nicer neighborhoods that you should be targeting for your desired asset type.
That is my suggestion for someone who is new to real estate; however, to answer your question in a more general sense: go where the jobs are. Jobs are a leading indicator of emerging markets, and thats where you want to put your money.
If you are looking at commercial rental property, I’d say it best to do market research on many cities to find the best or network with other commercial investors.
However, if looking for residential prop, I think it will depend less on the city than it will just to find a good deal within any city. There are hundreds if not thousands of solid investment deals in every city, the trick is just to locate them and typically, unless you know someone in a particular city that can tell you the better neighborhoods and steer you in the right direction to learn the market in that area, your best bet would be to just pick a city that is either close or where you would prefer to invest long term.
This way you can spend the time learning the various areas of that city and then narrowing that down to certain neighborhoods to focus on. When you get to that point, spotting good deals will be much easier and safer as you will have learned what the rental rates are, if an area is improving or declining, what the rental demand is (if its a tenants mkt or LL’s mkt), etc. Then once you find a good buy you can run numbers and make a smart investment
Hope that helps…
The money which you mention is good for real estate investment and you can invest any place according to your preference. I suggest you to invest in residential property and as per the current trend in real estate small town is better place for investment as compared to big cities.
You should find out which type of property you like most and do some research in that like commercial property is good or a residential property. In my opinion you should go with residential property, it may be a good investment.
Los Angeles, California and Portland, Oregon are two places I have been to that has some really nice investment properties to choose from…
In some cities, monthly rent prices are on the risel. In Austin, Texas, rent prices are among the fastest-growing in the country. Between 2011 and 2012, the average rent price went up 6.1% – to $917 per month.