Investing in condos can be a smart way to generate income, but choosing the right location can make all the difference. While South Flordia has long been a popular destination for condo investments, there are several other up-and-coming cities across the United States that are worth considering.
From growing job markets to attractive amenities and affordability, these cities offer plenty of opportunities for investors to get in on the ground floor and enjoy impressive returns. Whether you’re a seasoned investor or just starting out, this guide will help you identify the best places to invest your money and build a successful real estate portfolio.
What is ROI (Return on Investment)?
ROI, or return on investment, is a measure of the profitability of a real estate investment and the gauge many investors will use to determine if they want to purchase a certain property. That being said, in the context of rental units, ROI isn’t the only metric that real estate investors should consider. Other factors, such as appreciation potential, tax benefits, and cash flow, also play a role in determining the overall profitability of an investment.
Top Up-and-Coming Cities to Invest
The country is filled with exceptional cities that provide a healthy return on investment for condominiums. Typically, vacation areas are a popular choice for real estate investors as vacations are turning to rental options that host larger families as well as provide additional amenities not always available in hotels.
That being said, investors also know the benefit of finding long-term renters and with the rising need for housing in just about every city, there are nearly endless opportunities throughout the country.
Delray Beach, Florida
A popular vacation city for real estate investors to consider is Delray Beach, Florida. With nearly 40% of the city’s residents being renters, Delray Beach offers a competitive rental market targeting both vacationers and full-time residents.
There are an exceptional amount of condominiums located in Delray Beach that are sprinkled along the coast or are found in up-scale communities. The market caters to both high-end renters as well as more budget-friendly vacationers. With the diverse real estate landscape, investors have the opportunity to invest in a condo that meets their specific budget and financial goals.
Delray Beach has experienced significant growth in recent years, with new businesses and developments popping up throughout the city. This growth has not only increased the demand for housing in the area, but has also driven up property values. For condo investors, this translates to an excellent opportunity to generate impressive returns, both through rental income and potential appreciation of their property over time.
Torrington, CT is a small city located in the northwest corner of the state and despite not being as well-known as other Connecticut cities like Hartford or New Haven, it offers a promising and exciting opportunity for condominium investors.
A major contributing factor that attracts investors to Torrington is the city’s strong rental market. There is a healthy mix of both young professionals and families, many of who are looking for affordable, yet comfortable housing options, and condos can provide the ideal solution.
Real estate remains quite affordable for initial purchases and with the cost of living index being well below the national average, carrying the cost of the property won’t eat up potential profit.
Glendale, AZ is another up-and-coming city that offers a promising opportunity for condo investors. Located just northwest of Phoenix, Glendale is known for its excellent weather, beautiful parks and thriving downtown area. It’s also home to several large employers, including the Luke Air Force Base, which means that there is a steady demand for housing in the area, many of whom are renters – around 44%.
Condominiums for sale in Glendale remain quite affordable, which allows investors with various budgets to consider the city as a place to begin their investment journey. Combined with the many attractive qualities of Glendale such as great schools and ideal climate, investors continue to jump at opportunities for rental property purchases.
Charlotte, North Carolina
Dubbed the “Queen City”, Charlotte, North Carolina is a thriving community that provides an exciting opportunity for real estate investors. Due to its strong economy and a healthy increase in property values, purchasing a rental unit in Charlotte can result in an impressive ROI.
The city is made up of nearly 50% renters and with over 10 Fortune 100 companies located in Charlotte, high-income renters are quite commonplace. For investors, coupling the appreciation of property over time and the potential for top-paying tenants, all of this information translates into positives in terms of return on investment.
Dayton, OH is a growing city located in the southwestern part of the state, with a population of over 140,000 people. Dayton is known for its thriving arts and culture scene, as well as its affordable cost of living and business-friendly environment. It’s also an ideal location for investors, thanks to its proximity to Cincinnati.
Cincinnati is a major metropolitan area located just 45 minutes south of Dayton. It’s home to several Fortune 500 companies, including Procter & Gamble and Kroger, and has a growing population of over 2 million people. This makes Cincinnati an excellent market for investors looking to diversify their real estate portfolio.
Blending the potential for renters in both lucrative markets makes the Dayton-Cincinnati area a great option for investors looking to increase their ROI.
When considering where to invest in condo real estate markets, there is no shortage of areas to look into. Ensuring a strong return on investment, concentrating on cities that have affordable markets, high demand for rentals and a growing economy is a method for success