There are several factors to consider when choosing the right real estate market in which to invest and the right time to do it. When considering the research for this list of best cities to invest in 2015, our team put ourselves in the shoes of investors who are looking to build long-term wealth by acquiring cash flowing rental properties.
We have ranked all of the cities below on the following factors:
- Price to rent ratio: Low prices and high rents create the cash flow opportunity where the rents cover all expenses associated with owning a rental property on a monthly basis.
- Number of Fortune 500 companies headquartered: Investors want to build their rental property portfolios in markets that have strong economies anchored by company that provide thousands of jobs.
- Potential for home price appreciation over the next 3-5 years: Historically, we want to see a market that has achieved above-average appreciation rates (over 3.2%) over an extended period of time (15-20 years). We also focus on those markets that have strong growth indicators such as low months of inventory and ones that seem undervalued currently compared to 2006, pre-recession highs.
- Jacksonville, Florida
- Ocala, Florida
- Palm Bay, Florida
- Memphis, Tennessee
- Las Vegas, Nevada
- Toledo, Ohio
- Detroit, Michigan
- Orlando, Florida
- Syracuse, New York
- Atlanta, Georgia
Jacksonville tops our list as the best city for real estate investment 2015.