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Mortgage rates are at all-time lows, making it an excellent time for anyone to jump in and start investing in real estate.
Even if you don’t have a lot of money or you already tied your money up in stocks and bonds, with mortgage financing and a 20 – 30% down payment, you too could enjoy the attractive returns real estate offers.
You don’t have to invest in your own backyard either. Many people invest in homes halfway across the country, often buying the properties sight unseen when they use resources like Roofstock Marketplace.
If you’re thinking about jumping into real estate investing in 2021, check out the top 10 places to invest in real estate this year.
Best Places to Invest in Real Estate
1. Las Vegas, NV
There’s so much more to The Sin City than gambling. It’s a great place for investors to start real estate investments. Vegas has always been a stable and reliable market even throughout the housing crisis, thanks to its low real estate taxes and affordable living cost.
The fact that its tourism is so popular doesn’t hurt your chances of decent returns, but there is much more to love about Vegas too. Its housing prices are affordable, and its industries are booming, including the technology industry. New residents come to Vegas all the time, from young families to retired couples, making it a great place to invest.
Vegas is so much more than The Strip and the downtown area. There are plenty of wide-open areas with open living and recreational areas that most people don’t think of when they talk about Vegas.
2. Charlotte, NC
If you’re looking to invest in an area with regularly increasing values, Charlotte, NC, is a great area to consider. Not only does Charlotte have beautiful weather, but it combines the best of both worlds with urban and suburban living.
Charlotte has seen incredible growth since the pandemic started as more people move there to get away from the hustle and bustle of city life. Charlotte is a top-rated city in North Carolina and is highly sought after by many people. It’s a hot-spot for financial gurus, and it has a low unemployment rate, which decreases the risk of vacancies as a real estate investor.
If you’re looking for a reason to invest in Charlotte, NC, consider the median home price of just $250,000. You need just $50,000 to buy a home and rent it out, starting your real estate investment career in one of the most beautiful states in the US. Check out the beautiful real estate investment properties available on Roofstock Marketplace to get a good idea of what’s available.
3. Dallas, TX
Dallas is a stable place to invest, thanks to its stable rental rates and climbing home prices. Dallas has always been a great place to live, thanks to its low tax rates and incredible year-round temperatures. Now businesses are finding that it’s a great place to set up camp, making it a place that many people want to relocate to, especially those looking for a new job.
Dallas has a low homeownership rate, which means your pool of renters will be high. Dallas has diverse communities, with people from all income levels moving there, so there are opportunities to invest at any property value and make a decent income.
4. Atlanta, GA
Atlanta, GA has always been a hot-spot for large technological companies, including Google. This could be why Georgia’s population has increased tremendously over the last few years, far outpacing the average growth throughout the United States.
Many people don’t realize how affordable housing is in Atlanta, making it a great place to invest. With new people moving there daily (an average of 500 a day), there is always a great pool of renters available for properties.
If you’re looking for a ‘starter home’ to invest in or you want to dip your toes into real estate investing without spending too much money, Atlanta is a great place to start.
5. Orlando, FL
Orlando is so much more than Disneyworld, although that could be a reason in itself to invest in Florida. Orlando has always grown fast, and these last couple of years have been no exception. While it’s an area known for tourists, there are plenty of amazing areas to live that make people move there – looking to rent before deciding to buy.
Orlando has always had a strong job market that has grown year over year, even including 2020 and the pandemic. The sheer number of hospitality jobs in the area makes it a hot spot for renters as they come and go through the years and don’t want to buy homes themselves.
6. Phoenix, AZ
Phoenix offers two things – year-round sunshine and hot temperatures, or at least that’s what most people know of it. But, it’s also one of the top ten places to invest in 2021. As more people flee their hometown searching for a change and incredible weather, many head to Phoenix.
It’s an area ripe with families of all sizes, including retirees looking to set up roots in a beautiful state with amazing weather. Phoenix boasts a low cost of living and has always had one of the country’s top job markets. Phoenix has always offered investors decent profits on their investments, and now it’s your turn to take advantage.
7. Tampa, FL
Tampa is a hot spot for healthcare and financial companies, making it a great place to invest in real estate. New families are always coming to the area and looking for a place to call home, even if only for a year or two.
Like most of Florida, Tampa has incredible weather and a low cost of living. While not as ‘touristy’ as Orlando, Tampa has its share of tourists, which is great for the economy, including the housing market.
8. Austin, TX
Austin is the tech-mecca of the United States and is always bringing in new talent. While it’s not as big as Dallas, there are plenty of real estate investment opportunities that are often great for new investors who don’t want to get overwhelmed by the big city living.
Austin has always had a low unemployment rate, which makes it an attractive place to live after the year we had. Its housing market has held steady throughout the years, too, giving investors a decent return on their investments.
9. Nashville, TN
Almost half of Nashville consists of renters, so it’s a great city to start your real estate investments. Known as the hub of country music, the tourist economy keeps Nashville alive, but its unemployment rate has remained relatively low even through the pandemic.
The houses are more expensive in Nashville than in other areas, but you can charge higher rent and take advantage of its booming economy that’s bound to keep growing in 2021.
10. Salt Lake City, UT
People are fleeing California right and left since the pandemic seems to be going nowhere in that state, and Utah is a logical landing place for many. Salt Lake City is beautiful and affordable, making it a great place to invest your money.
Since its home prices are much higher, it’s a great place for established investors to grow their real estate portfolio and take advantage of the booming economy and low unemployment rates in Salt Lake City.
What to Look for in an Investment Home
Before you invest in a home, especially one that is halfway across the country, know what to look for.
What Are the Rental Rates?
Is it an area where renters want to live, or is it mostly homeowners that live in the area? Just because you buy a home to rent out doesn’t mean you’ll have the target audience you’d hoped for. Do your research, determine if the area is a hot rental market or if people prefer to own homes themselves there.
Will You Have a Cash Flow?
Know the average rent in the area so you can determine your profits (or lack of profits). If you’re financing the property, you’ll have a mortgage payment plus real estate taxes, insurance, and repairs/maintenance. Knowing the average rent prices in the area will help you determine if the property is worth it.
Can You Get Financing?
Knowing the area’s average home values will help you determine if you can afford to invest there. If you aren’t paying cash, you’ll need financing that requires at least 20 – 30% down on the home. If the prices are out of your league, don’t waste your time trying to invest there.
Will You Manage It Yourself?
Will you hire a management company to handle the repairs, collecting rent, and all other administrative work? It makes sense if the property is halfway across the country, but what if it’s in your backyard? Can you handle the work involved, or will you pay someone else to do it? Figure this into your cash flow when making your decision.
Do You Want a Fixer Upper?
Watch out for fixer uppers. They can cost a lot more than you think once you start the work. If you love DIY projects or can handle contractors and the work involved in a fixer upper, it may be right for you. But don’t go into it thinking you’re going to take a disaster to a million-dollar property – be realistic.
FAQ
Is Real Estate a Good Investment?
It can be. Real estate is a great way to diversify your investments and offset the risk of a total loss. In 2021, housing prices are continually rising, and the demand for houses is high. As people keep fleeing their hometowns searching for something new, you could be the person providing them with their dream home while you earn cash flow from their rents.
Is 2021 a Good Year to Buy a House?
It’s certainly a year for sellers as there are many more buyers than sellers in the market. As the year unfolds, more homes will hit the market, but you must be competitive and prepared when you find the house to bid on for your real estate investment needs.
Will Rent Prices Drop in 2021?
So far, rent prices are remaining stable thanks to the pandemic and the financial issues it caused. As we get back to ‘normal’ and housing prices continue to rise, you’ll see rent prices slowly increase, but for now, enjoy the stable rates and the cashflow they bring in from your investment.
How Do You Start Investing in Real Estate?
It all starts with a desire and some capital. You don’t need a lot of money, and you can even tap into your home’s equity to invest in real estate. The key is to leverage real estate you own, get in while rates are low, and earn passive income that you can keep growing as you grow your portfolio. It starts with that first leap of faith and investment in yourself. Whether you get the money from your own home or other money you saved, it’s a great way to diversify your portfolio.
Enjoy Investing in Real Estate in 2021
As millions of people turn to rent rather than homeownership during 2021, it’s a great time to be an investor.
Millions of people are still changing locations as more employers go fully remote. Many people are starting their own businesses too in place of risking unemployment yet again after the year 2020 threw at us.
If you’re ready to diversify your portfolio, look at real estate investing. Roofstock is an excellent resource as they do the vetting for you – which is perfect for beginners looking for the ‘perfect property’ to invest in this year.
