12 Best cities on the East Coast for launching your real estate investing career
March 17, 2022 (Investorideas.com Newswire) Some of the top cities in the United States to invest in real estate are found on the East Coast. Various property investors have discovered that investing in this area yields larger returns than investing in other parts of the country.
Mortgage rates finally fell in 2018, despite the recent turbulence in the stock market in the United States. According to Freddie Mac's Primary Mortgage Market Survey, mortgage rates have dropped to 4.75 percent.
Continue reading if you're looking to start your career in real estate on the East Coast. We've compiled a list of the finest cities to consider.
The greatest cities on the East Coast to acquire rental property, according to our recent analysis:
- Portsmouth, VA
- Wilmington, NC
- Westbrook, ME
- Key West, FL
- Washington, DC
- Hampton, VA
- Richmond, VA
- Syracuse, NY
Below is a breakdown of each city, along with data, to assist you to decide which one to consider for real estate investing.
1) Portsmouth, Virginia
Portsmouth, the city in Virginia, is an East Coast real estate market that property investors should look at. It's less expensive than the other cities mentioned in the list such as Richmond and Hampton, making it an excellent choice for first-time investors with limited funds.
Though its economy isn't the best, it is steadily improving. The city's personnel and infrastructure are conducive to company expansion, job creation, and innovation. It also offers a lot of tourist destinations due to its geographic location, making it an ideal housing market for short vacation rentals. Take a look at the numbers below to see how profitable Airbnb investments may be in Portsmouth:
- $195,717 is the average price of a home.
- $111.10 per square foot
- 2.32 percent traditional cash-on-cash return
- Airbnb's cash-on-cash return is 9.3%.
- Occupancy Rate on Airbnb: 57.89%
- $1,197 in traditional rental income
- Rental income from Airbnb: $2,510
2) Wilmington, North Carolina
The inclusion of Wilmington on our list of greatest cities in the East Coast housing market to acquire investment homes may surprise real estate investors. The city, on the other hand, has earned its place on this list for two key reasons.
To begin with, the city continues to encourage employment and economic development. It has a 4.7 percent unemployment rate, which is much lower than the state's (5.5%) and national averages (5.3 percent ).
Second, Wilmington's population is rising, which is driving up the demand for rental houses. On the other hand, the amount of available inventory currently surpasses the demand. As a result, real estate property buyers have the advantage and the opportunity to get a better deal on an investment property and hard money loans from a local lender in North Carolina.
- 1.56 percent traditional cash-on-cash return
- Cash-on-Cash Return on Airbnb: 4.2 percent
- 37.2 percent of Airbnb listings are occupied.
- $319,245 is the average price of a home.
- $151.40 per square foot
- $1,484 in traditional rental income
- $2,951 in Airbnb rental income
3) Westbrook, Maine
Maine has long been a popular vacation location, so it's no wonder that it's now one of the greatest areas to buy real estate on the East Coast. There are a number of cities and towns in Maine that would be advantageous for property investors, but Westbrook is the one that made it to the list. The city boasts a 3.5 percent unemployment rate, a 30.1 percent job growth rate, and is a reasonably priced area to live in. As a result, more individuals are moving to the city and raising the demand for rental apartments.
Furthermore, for many Westbrook real estate investors, renting out on Airbnb has become the best rental option.
- $269,092 is the average price of a home.
- $188 per square foot
- $1,453 in traditional rental income
- Rental income from Airbnb: $4,452
- 1.47 percent traditional cash-on-cash return
- Airbnb's cash-on-cash return is 9.9%.
- 69.71 percent of Airbnb listings are occupied.
4) Key West, Florida
We couldn't possibly begin this list without mentioning Florida. Orlando, Jacksonville, and Tampa are just a few of the places in the state that are well-known for their high real estate investment returns.
Not only is Key West a renowned holiday destination, but it's also a popular real estate market on the East Coast, with many people choosing to call it home. The city also has a stable economy, with tourism as its primary business and a 2.7 percent unemployment rate. According to our research, in the Key West real estate market, both traditional and Airbnb rental units are profitable.
- $901,964 is the average price of a home.
- $709.40 per square foot
- $4,016 in traditional rental income
- Rental income from Airbnb: $8,470
- 3.61 percent traditional cash-on-cash return
- Airbnb's cash-on-cash return is 7%.
- 74.75 percent of Airbnb listings are occupied.
Perhaps Florida's most vibrant city, Tampa, offers investors a wide range of options and opportunities. The local economy is worth more than $130 billion per year, and it is also one of the fastest-growing cities in the United States, thanks to a strong focus on job creation and development.
There are a number of reasons why investing in Tampa is a good idea. Consider the following scenario:
- There are four Fortune 500 firms based there.
- Tampa still has a thriving tourism industry.
- With over 4 million population, Tampa is a diverse city.
- There are numerous renting options available.
Investors may discover magnificent properties for great prices in Tampa, and research suggests that they can rent them out fast for between $1,075 and $1,400, which is substantially above the national norm.
Orlando, Florida is one of our favorite picks for the real estate rental market. Because of the high quality of life and job prospects, people and businesses are flocking to the greater Orlando area. Renters occupy 46 percent of housing units in Orlando. This is a sizable portion of the renter population, which appeals to real estate investors.
There are numerous reasons why it is so popular.
- The climate is fantastic because it is located in Florida's "Sun Belt Region." Beautiful beaches may be found in Orlando.
- It is home to world-famous amusement parks including Disney World and Universal Studios.
- The cost of living in the neighborhood is reasonable.
In the second quarter of 2019, house prices increased by 3.3 percent year over year.
Orlando has a population of about 2.5 million people and a thriving tourism industry with young people and students. This makes it an excellent community in which to raise a family or find possible tenants for your rental property.
7) Miami, Florida
South Florida's housing market is predicted to be strong in 2021. Home prices are rising, while inventory levels are at low. It's a buyer's market right now, and many individuals are getting top dollar for their properties. After being impacted hard by the pandemic, the housing markets in Miami and South Florida began to recover in July 2020. The demand for South Florida real estate has increased since then. The Miami housing market has increased in 2021, thanks to pent-up demand and low mortgage rates.
It's also because more individuals and businesses are moving to South Florida from high-tax, high-density locations around the country. As Per the MIAMI Association of Realtors (MIAMI) as well as the Multiple Listing Service (MLS) system, in Q2 2021, Miami-Dade County real estate broke a new record for the most overall house sales in a quarter, thanks to pent-up demand, more Americans coming to South Florida, and record-low mortgage rates.
- $284,249 is the median price of a home.
- The cost per square foot is $188.
- Monthly Price to Rent Ratio: 14 $1,721 in traditional rental income
- 4.14 percent traditional cash-on-cash return
The housing market in Metro Atlanta has largely recovered without any hassle. In 2020, the Atlanta residential real estate market did remarkably well despite unemployment and instability. In 2020, home prices soared, and this trend appears to be continuing in 2021. In the 11-county area, the median price of a home sold last month was $359,000. According to the Atlanta Realtors Association, this price is 15.8 percent higher than the median price in September 2020.
Low borrowing rates lure buyers into the market and increase their purchasing power. Low mortgage rates provide buyers more purchasing power, even as property values continue to grow. Low borrowing rates aren't the only factor driving prices to new highs. A scarcity of available housing is also a contributing factor. Scarce borrowing rates and low inventory will define 2021, creating a perfect storm that will continue to push home prices higher. While prices are slowly rising, maintaining constant at approximately 14% in August and September, inventory is just not keeping up.
9) Washington, D.C.
Washington, D.C. is best recognized as the nation's capital, but it is also a bustling metropolis in its own right. The city, which is officially known as the District of Columbia, is home to about 705,000 people and is further divided into 131 distinct neighborhoods.
However, because Washington, D.C. borders both Maryland and Virginia, its reach goes far beyond the city limits, providing enough opportunities for investors regardless of their investment approach.
Despite certain setbacks caused by the epidemic, home demand indicators in Washington, D.C. demonstrate that the city is on the mend and hard money loans in Washington DC are at a high in terms of disbursement.
- Median Home Price: $521,277
- Average Annual Salary: $72,600
10) Hampton, Virginia
Hampton is a historic town with a contemporary feel. As a result of the military's positive influence in the region, it has a booming economy. Military families with members stationed at one of the various local bases are in great demand for Hampton real estate. Almost a fifth of the US military is stationed in Hampton.
From the calm inland shores of Newport News to the wealthy oceanfront of Virginia Beach, this city on the East Coast features a diverse range of communities. As a result, real estate investors will be able to find a variety of properties for sale in which to invest in order to profit from real estate.
- $196,564 is the average price of a home.
- $111.60 per square foot
- $1,130 in traditional rental income
- $2,758 in Airbnb rental income
- Airbnb's Cash-on-Cash Return is 7.67%
- 2.03 percent traditional cash-on-cash return.
- Occupancy Rate on Airbnb: 46.88 percent
11) Richmond, Virginia
Richmond, Virginia's capital, has a well-developed, diverse, and prosperous economy. More than a million people live in the city, working in fields such as law, banking, medical research, and biotech. As a result of the healthy economy, more educated, well-paid workers are entering the workforce, increasing demand for real estate investments. As a result, in its Emerging Trends in Real Estate 2019 Report, PwC listed Richmond as the 38th US market.
The city's rapid expansion and rising home values make it even more appealing to East Coast real estate investors.
- $330,949 is the average price of a home.
- $165 per square foot
- 1.83 percent traditional cash-on-cash return
- 4.38 percent cash-on-cash return on Airbnb
- $1,349 in traditional rental income
- $2,514 in Airbnb rental income
- Occupancy Rate on Airbnb: 54.85%
12) Syracuse, New York
Syracuse is a popular destination for property investors wishing to buy multi-family rental properties. When you check the data, the first thing people notice is the affordability of properties for sale in the Syracuse property market. This city does, in fact, have the most affordable East Coast real estate investment assets on the list.
Additionally, the city's typical rental income is relatively high, indicating that property investors will have a positive cash flow.
- $137,167 is the average price of a home.
- $79.10 per square foot
- $1,173 in traditional rental income
- $2,247 in Airbnb rental income
- 2.31 percent traditional cash-on-cash return
- 5.37 percent cash-on-cash return on Airbnb
- 57.41% of Airbnb listings are occupied.
These are the 7 best cities on the East Coast for launching your real estate investing career. While there can be a lot of money to be made in real estate, you should always be cautious.
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