The real estate market is heating up and this summer is expected to be an incredibly busy one for home sales. So where are they best places for flipping houses?
There are many factors to consider when it comes to real estate investing, however one which stands out as being critical for selling a high volume of properties is how affordable a market is.
According to CNN, Wells Fargo and the NAHB (National Association of Home Builders) the following 10 are the most affordable cities in the U.S. based on mortgage rates, home prices and median income. Could they also offer the biggest profits for real estate investing pros over the next 3 months?
10 Most Affordable Cities by Affordability Ranking
- Indianapolis, IN
- Dayton, OH
- Lakeland, FL
- Modesto, CA
- Grand Rapids, MI
- Buffalo, NY
- Ogden, UT
- Syracuse, NY
- Akron, OH
- Cincinnati, OH
Whether these markets are really right for real estate investing for you is a personal choice and attention certainly needs to be paid to the spreads between acquisition prices and what they can fetch for retail. However, it is obvious that the more affordable homes are the more qualified buyers there should be and the bigger the buyer pool. It also lends to the conclusion that financing ought to be easier, enabling more retail sales at higher dollar amounts.
However, in some of these cities it may be necessary to watch for neighborhoods with lights going out and restructuring plans by cities. In Detroit and other major cities plans are being rolled out to cut out up to 50% of the street lights and cut off entire neighborhoods. This will cause a massive increase in crime and drop the value of homes located their while boosting demand where there are better services. A good knowledge of local developments will help investors to swing big spreads in short periods of time.