UPCLOSE & PERSONAL
WHERE TO INVEST
Best Buys THESE FIVE CITIES EXHIBIT FACTORS THAT POSITION THEM AS PRIME AREAS FOR RENTAL-PROPERTY INVESTMENT.
by Kathy Fettke
he best real estate markets often have three things in common: job growth, population growth and afford- ability. When you find an area that meets all three of these criteria, you’ll probably be able to find solid cash flow. If that market also has revitalization plans, then you get a double whammy of cash flow today and appreciation in the future as the area gentrifies.
There are several cities across the United States where these factors exist today—places where you can buy high-cash-flow rental property while prices are still low (around $100,000 after renovation, in many cases) and watch your equity grow. Listed here are five of these “best-buy” cities for 2017. Find out what makes each of them a great place to invest and why.
#1
#2
ORLANDO, FLORIDA
TAMPA, FLORIDA
Orlando is the fourth-largest city in the state of Florida and the 73rd-largest city in the United States. Located in Florida’s “sun belt” region, this metro area is known for its warm climate, beautiful beaches and world-famous amusement parks.
Tampa Bay, located on the west coast of Florida, is a densely pop- ulated metropolitan area (second only to Miami) with a population of more than 4 million people. Major cities in this area include St. Petersburg, Largo, Clearwater, New Port Richey, Holiday and Tampa. JOB GROWTH In 2015 alone, the Tampa metro area added 44,300 private-sector jobs, giving it the fastest growth in the state and one of the fastest in the country. Tampa is also home to several Fortune 500 companies, including Publix Super Markets Inc., Jabil Circuit Inc. and WellCare Health Plans Inc. POPULATION GROWTH Tampa has a population of 4 million and a local economy worth more than $130 billion, and it’s ranked in the top 20 fastest-growing metros in the United States. AFFORDABILITY An area with mostly high-priced homes, Tampa still has pockets where investors can find homes at affordable prices—even as low as $90,000—and turn around to rent them for $950 a month to $1,250 a month.
JOB GROWTH Orlando’s employ- ment growth is among the best in
the United States with 173,900 jobs created since the recession and a growth rate of 4 percent per year. Moody’s also predicts employment to grow at a rate of 4.2 percent a year through 2017. POPULATION GROWTH Orlando’s population has grown 41 percent since the
year 2000, and is expected to grow an additional 1.5 percent in 2017. (This means the demand for housing is likely to increase.) AFFORDABILITY In Orlando, it is still possible to purchase fully renovated properties in good neighbor- hoods for less than $120,000.
54 | think realty magazine march :: april 2017
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