Quite candidly, each place has its advantages and disadvantages.
But being from Memphis, Tn i can let you know that the Memphis Real Estate investment market has been featured on NBC, USA Today, etc as being one of the top locations because of it affordability, homes for sale, and rental climate. As the real estate bubble burst this has provided more renters to our market and continues to do so. We also have a fairly stable economy which provides for long term renters. I will be glad to provide you with information. You can contact me at MrOppenhouse.com or email me at email@example.com
We have investors from out of the area inquiring and investing regularly and i have been working with foreign investors that have seen the articles etc and would like to invest in our area. We also provide the repair and management of the property for them
Marc Oppenhuizen Marc@Mropenhouse.com
There are so many possible locations for you but here in the Fort Meade MD area we are half way between Baltimore and Washington where unemployment is low and home prices are finally stabilizing. We have several military bases including Fort Meade (that houses NSA as well), Andrews AFB and Curtis Bay Coast Guard Station. Rentals are in VERY short supply and there is always a high demand from well qualified renters.
we have so much opportunity here in Maricopa, AZ. During the boom years thousands of beautiful homes were built and many of them are for sale now at a huge discount. We are close to Phoenix and Tempe and this will be a growing area again when the market comes back. We easily create positive cash flow but in addition we offer enormous potential for increases in value once we sold off the inventory. It will happen and then many people will be sorry that they did not act on this opportunity.
I know, sounds crazy, but yes, we're talking about a $300+ cash flow per month on these properties. That's why cash is king right now. So under $200k, you could buy 4-5 of these properties in Mobile, AL.
see http://www.mobileinvestmentproperty.com for recent deals we've done.
I'd like to think it's where I live, but I'll bet you can find good investment properties in all 50 states. It all depends on what you want.
Short-term (vacation) rentals provide higher income, but it's not steady. My recommendation would be to look for single-family homes with long-term rental potential. To me, the ideal property would be a 3-bedroom, 2-bath concrete block home, with garage, in a neighborhood where the average income is close to the average for the city/county in which it's located, and where there are good schools, shopping, and other amenities nearby.
Work with a real estate agent on this, and look at the homes priced in the lower end of the range for the neighborhood. Most of the homes you find will be short sales, foreclosures, or fixer-uppers. Next, sit down with your agent and look at the numbers. Have him/her do some investment analyses for the properties you're considering. Take into account all the costs involved including property management fees, repairs, property taxes, and homeowner's insurance--perhaps flood/windstorm coverage too.
Make sure you can really afford to own the property you're considering. Remember, investment writer Andrew Beattie says that "Real estate investing doesn't start with buying a rental property - it begins with creating the financial situation where you can buy a rental property. "
After all that, if everything looks good, go for it.
Maggie Hawk, REALTOR
Watson Realty Corp.