Everyone is wondering what the best major cities are to invest. We’re going to take a different spin on it…
The problem with city-living is the lack of outdoor adventure. Sure, New York has Central Park but, for the most part, it’s sky-tickling buildings and metropolitan living, and the same goes for most other Great American Cities.
But, there are a ton of secondary cities, small towns, and smaller metro areas that offer great investment opportunities!
While investing in the suburbs or even rural communities isn’t for everyone, it can be beneficial for some.
First of all, if you love the outdoors and want to be near the woods, mountains, etc, then you might also want to invest there.
Even if you aren’t an outdoors enthusiast, there might be a number of reasons to invest in rural communities. Here are a few
Investments in suburbs around smaller urban areas can be a good play. These definitely are not core investment markets, but the returns are staggering!
That’s because there is still demand to live there, but there is far less competition from other investors. While rents are lower, the prices are even lower. This means you get more rent for every dollar you invest.
Which means…you guessed it… higher returns.
There is a slower pace to life in towns when compared to cities. Tenants are going to be easier going, more independent, and easier to work with. Overall, this means fewer headaches for the landlord.
Less stress on you means you are happier and will continue to grow your investments.
Smaller towns have few professional landlords. Less professionalism means there will be more properties that are run down or need significant work.
The more properties like that then the more opportunity to find underpriced properties when compared to their true value.
So, you can snap up a few cheap properties in smaller towns whereas investors are all over these deals in larger metro areas.
Alright, we’ve covered a ton of reasons why you might want to invest outside of the major cities, so without further ado, here is the list:
I’m sure many of you have heard about the Plano/Frisco area, and I’m honestly not including it in this list because I live there.
Frisco is the fastest-growing city in the United States, with a population that has grown by more than 50% since 2010. The city also grew a ton from 2000 to 2010, going from 33,000 people to over 110,000.
However, population growth isn’t the only reason why Frisco could be a great place for investment in real estate. It has great schools, high job growth and an average income around twice that of the national average. There are also a variety of different types of homes and apartments in Frisco TX, so whatever your tastes are, there is a good chance you’ll be able to satisfy them here. Also, with a lot of expansion going on, building your own home isn’t out of the question either.
It could be the good weather or the no personal income tax, but whatever it is, people are seeming to flock to Florida. It is home to several of the fastest-growing cities in the country and many of those are great places to invest. One, in particular, to check out is St. Petersburg. In addition to population growth, the employment growth is incredible here, too.
House prices are also growing steadily, which means an investment property is likely going to appreciate in value as long as this growth continues. Not only that, but the rental yield is also high which means that it will take you less time to pay off your investment because rent prices are high compared to home purchase prices.
While you may not think of Boise, Idaho as a great place to invest in real estate, the numbers would prove otherwise. The population growth in Boise is healthy, but it is the job growth that makes the city a great place to invest. Few cities have larger employment growth than Boise, and it is becoming a bigger player in the technology industry as well.
Home values in Boise have also been rising steadily over the past few years, and this is expected to continue in the future. The good news is that they haven’t gotten out of hand and are still quite affordable compared to other major metro areas with what Boise has to offer in terms of jobs, education, culture, safety and more.
For those that know this place, you’ll know the city has been growing faster than a shoot of asparagus in spring, and yet it has still managed to cling onto the natural beauty it boasts; a natural beauty that almost seems otherworldly. There is the 32-acre outdoor oasis known as Falls Park, the Swamp Rabbit Trail, the Nantahala National Forest, amazing waterfall hikes and the Congaree National Park too.
You’re probably thinking we’ve gone mad mentioning the Steel City on a list for outdoor-lovers, but this manufacturing hub has 18 state parks with an hours drive of the city.
Yes, 18 of them.
Just look at the Ohiopyle State Park, which offers up rock-climbing, whitewater rafting, sailing, mountain bike trails and so much more.
This city in northwest Idaho is about as adventure-friendly as any place on earth, but you’ll know that already if you know anything about the thrill-seeking state of Idaho.
From huge ranches to the water sports on Lake Coeur d’Alene, this place has it all.
It’s got trails in the Canfield Mountain Natural Area and more of the same in the Coeur d’Alene National Forest. It’s a place for those wanting to feel their heart pound after a mundane day in the office.
This is one of the most rural states in America, so it makes sense for it to feature on the list. It’s a place where relaxing in the wild is just as common as looking for a thrill. If you love taking to the snow on skis or board, you have mountain resorts dotted around. If you are a hiker, biker, or just someone looking for a good place to go fishing and swimming, you have the Cheat Lake Trail in Morgantown.
You may want to delve into something a little more remote, so, you can drive about thirty minutes to Coopers Rock for some nice and long hikes.
Last on our list of best cities is Tampa.
Not everyone is up for huddling inside come winter. Some people want to enjoy the great outdoors all year round, which is where Tampa swoops in wearing a red cape.
It has sandy white beaches and kayak trips through the mangroves. You will enjoy the manatees and dolphins.
It’s a place where you can worship the sun, enjoy barrier islands and huge parks that line the area outside Tampa.
You should always consider the fundamentals of an area before investing. This includes population growth, employment, average income, rent to price ratio, and others.
These are just a few of the most underrated cities for real estate investment in the USA, based on a number of different factors. Of course, be sure to do your own independent research before investing in any sort of property in any city to make sure it’s right for you.
This article was written by one of IdealREIs excellent guest contributors.
I started out as a full-time student, over $60,000 in debt, and didn't even have a full-time job (two part-time jobs). Learn the system I used to create a 6-figure passive income.
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