Looking for the best real estate investing locations for rental properties?
While there may be great real estate investing opportunities all over the country those set on building a portfolio of rental properties of their own may be wise to check out some of the cities where unemployment is lowest.
Low unemployment means attracting new residents, residents who need housing and who are much more likely to rent before they contemplate buying. High rental demand means lower vacancy rates and higher rents. For investors this means consistent income and larger returns.
So which of America’s boast the lowest unemployment rates right now?
According to The Labor Department the following 9 cities were top of the list at the beginning of 2012 and their unemployment rates:
1. Midland, Texas – 4.1%
2. Mankato, Minnesota – 4%
3. Logan, Utah – 3.9%
4. Ames, Iowa – 3.8%
5. Iowa City, Iowa – 3.8%
6. Burlington, Vermont – 3.7%
7. Lincoln, Nebraska – 3.2%
8. Fargo, North Dakota – 3.1%
9. Bismark, North Dakota – 2.8%
Interesting current statistics put at least a good percentage of these cities still at the bottom in terms of home prices. Could these cities be sweet spots for buy and hold investors where there is ample opportunity for buying low and locking into rapidly rising returns and quickly growing equity?
With asking prices on the rise in these cities could they well be smart choices for wholesale real estate investing strategies too?
Of course there are other factors to consider before real estate investing in any specific locale. However, with the speed that some coastal markets are heating up and new construction is flourishing in some of these they may become less attractive as rental destinations as cash flow spreads are eaten up by rising property prices, making the above list even more attractive.