October 22, 2018

If you are ready to make an investment in rental properties this fall, you should think twice before choosing a place. Depending on your decision, you can maximize your profit or vice versa lose your money.

If you want to know which cities are worth your attention, check the following list. Whether you are interested in long-term or short-term rentals, you will find a few interesting options to consider.

Long-Term Rentals

If you want to get the consistent income, you should invest in the properties for the long-term rent. When you become an owner of a house or apartment, you will establish the positive cash flows as soon as you will find a reliable tenant,

Anthony McGregor, CEO of PickWriters, and real estate investor says: “This is the least risky niche for investment. While prices on real estate fluctuate over time, the long-term rentals demonstrate the steady growth.” Check the following cities, which promise to be extremely profitable places for investment.

West Palm Beach, FL

West Palm Beach is a city with the highest cap rate for long-term rentals in Sunshine State. Rental property in this area is the cheapest in Florida. You can invest $100,000 in buying a small house and get a return on investment equal to 8%.

A population of this region is growing by 2,8% annually, so demand for the rental houses and condos is increasing. The Americans from the northern states continue to move to Florida because of the mild climate, white sand beaches, and good infrastructure. There is no room for a doubt that West Palm Beach is a great place to invest in.

(View Rentometer Address Report for Downtown, West Palm Beach, Florida)

Kingston, NY

If you are interested in long-term rental properties in New York State, then you should take a closer look at such a great place as Kingston. Its cap rate is equal to 3,34% and this is one of the highest rates in the state.

Despite the fact that this city is pretty small, it has great infrastructure and prospects for further development.  Last year, New York State invested in Kingston more than $250M to renovate schools and hospitals as well as drive economic.

(View Rentometer Address Report for Kingston, New York)

Seattle, WA

Seattle is a big city, which doesn’t offer investors too high returns, but promises to provide the stability. If you will invest in this place, your return on investments will be around 2%. But the trick is that while prices for real estate in other cities jump and float back down, prices in Seattle don’t fluctuate that much.

So, if you want to buy the apartments avoiding any risks, take a closer look at this place. Seattle is the fastest-growing big city in the U.S., so you will never face any problems with selling or renting your property.

(View Rentometer Address Report for Capitol Hill, Seattle, Washington)

Short-Term Rentals

Modern technologies changed the world of rental services and provided new ways to make more money. If you want to get the maximum profit from the rental properties, you should buy a vacation home. If you will use Airbnb, VRBO or hotel programs, you will get in 3 times more profit comparing to the traditional long-term rentals.

This is a new niche in the market, but it promises to demonstrate rapid growth. If you are ready to invest in vacation home this fall, check the following places.

Niagara Falls, NY

Niagara Falls is one of the most popular travel destinations in the New York State, so demand for vacation rentals remains high for many decades. For this reason, this small city has one of the highest ROI in the region – it exceeds 5%.  

Keep in mind that quantity of the tourists depends on the seasons, so you should raise the rent in the summer and lower it in the winter. If you will design a flexible pricing strategy, you will be able to maximize your profit.

(View Rentometer Address Report for Niagara Falls, New York)

Joshua Tree, CA

Joshua Tree is a census-designated place in California, which is known as one of the most popular travel destinations in the state. This is a great region to invest in because of its low mortgage costs and high gross profits on Airbnb.

Joshua Tree attracts travelers not only from the U.S., but also from abroad, so demand for vacation rentals is always high. According to the latest statistics, an owner of vacation home receives around $27,500 of net income annually.

(View Rentometer Address Report for Joshua Tree, California)

Savannah, GA

This is the oldest city in Georgia, which attracts tourists with its historical see sights. Mortgage cost in Savannah is lower than in other big cities of the state, while income on Airbnb and VRBO is significantly higher. Vacation home in this area will bring its owner around $26,000 per year.

(View Rentometer Address Report for Savannah, Georgia)

In Conclusion

If you want to buy the rental properties this fall, don’t hurry up to invest in the big cities like Los Angeles, San Francisco, and New York. You should review other perspective places before making a final choice.

If you will become an owner of the rental properties in the small towns, you can get even higher profit and decrease the risks. Experts state that this fall is a great time to make an investment in real estate, so don’t miss a chance to make more money.

About the Author: Kristin Savage nourishes, sparks and empowers using the magic of a word. Along with pursuing her degree in Creative Writing, Kristin was gaining experience in the publishing industry, with expertise in marketing strategy for publishers and authors. Now she had found herself as a freelance writer.  She observes with a special interest how the latest achievements in media and technology help to grow readership and revenue and shares her opinion. You can find her on Facebook and Medium.

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