Hottest Real Estate Markets

Hottest Real Estate Markets – Are All Around You

The fundamental question to ask when inquiring about investment residential real estate in order to start off on the right foot is:”Where are the Hottest Real Estate Markets?”

Hottest Real Estate MarketsThis is a simple case of economics 101. Let’s take Detroit, MI for an example.

The local economy has been devastated, the unemployment rate is nearly 18%, and the city is in bankruptcy.

But what about the thousands of homes that are vacant just waiting for somebody, anybody, to buy them for pennies on the dollar from the banks who need to offload this huge drag from their balance sheets? If I can get them for so little isn’t that a good investment?

I mean I could actually buy a single family home for a 1$ per square foot!! That is a crazy good deal right? Wrong.

Let’s walk through this step by step but do it quickly so we can get to the hottest real estate markets in the good O’l USA!

Back to econ 101:

  1. The city is in bankruptcy. Have you ever heard of someone looking for a good paying job or career at a bankrupt corporation? Me neither and this is the case in Detroit as well. Whole neighborhoods have picked up and abandoned their homes in search of greener pastures. In this instance the cliche “the grass is greener on the other side” is true.
  2. If people cannot find good jobs in this area, are your potential tenants going to be able to pay you rent? Not a chance.
  3. If you could buy an island that was completely inaccessible, dangerous, and uninhabitable for a couple thousand bucks; would that make a good financial sense? If you wanted to brag to people you owned an island then maybe that would be worth it to you, but it doesn’t help your bottom line now does it.

Hopefully you get the picture that just because property is cheap does not always mean it’s a good investment.

Remember the mantra you always hear from real estate agents? “Location, location, location!!!”

Don’t get me wrong there are places within the Detroit area that make for a good investment similarly there are places within great markets that are not so good either; I just wanted to draw a contrast.

Now this little bit of wisdom applies to a location within a neighborhood, city suburb, region, state, country, and ultimately the globe upon which we live.

Luckily for you and I, real estate markets are as ubiquitous as people and just as unique.

This means that we can assess ANY market ANYWHERE to see if it would support our investment goals.

So what are we looking for when assessing a real estate market?

Real Estate

To start this off simply, let’s find the opposite of Detroit!

With that said we need a city with a thriving job market, current and projected population and economic growth, businesses moving in, good school systems, low crime rates etc….

Last, but not least, we want to keep our eye on the residential real estate market.

What are the homes selling for? What is the average rent for the type of home you are interested in? What are the prices of these homes? How many are available and who is selling them?

What is the rental market like? Are tenants long-term or short-term? What about property management companies?

Do they have a good reputation if you plan on buying outside of your area? Blah blah blah blah…… I could go on and on!

Below are some great markets to invest in.

These are not in any particular order but the inventory in the first two are dwindling.

  1. Phoenix, Arizona – Equity Growth market
  2. Atlanta, Georgia – Cash Flow & Equity Growth market
  3. Memphis, Tennessee – Cash Flow market
  4. Orlando, Florida – some Cash Flow but mainly Equity market
  5. Indianapolis, Indiana – Cash Flow market
  6. Your Own Backyard! – It depends, could be both!

Maybe you are fairly new to single family or residential real estate investing and are not sure what exactly the difference is between a Cash Flow market and an Equity Growth market. No worries, you can learn more about it here.

There you have it folks!  Currently, these areas, and oftentimes their surrounding suburbs, are excellent places to put your hard earned cash to capitalize on.

Leave a comment below!

Hottest Real Estate Markets – Are All Around You By Joe Nielsen

10 Comments

  1. Hi Joe

    This is a really good website. Very informative for anyone wanting to invest in real estate. Great job!

    Gary

    • Hi Gary,
      Thanks for the compliment and the comment!
      I plan on providing much much more!

  2. I’ve honestly been waiting for a site like this- a starter guide to real estate investment. Can’t wait to see more from you! Greg

    • Hi Greg,

      I can’t tell you how great it is to hear that all this work is valued!
      Thanks, I really appreciate it!
      I can say I know what you mean. I have read so many books, attended so many
      seminars, and spent many thousands of dollars to learn just what it takes to be
      successful in this industry and I can tell you there is a lot of misinformation
      out there.
      Hope to see more of you here!

  3. Joe, great website and article, consider yourself bookmarked. I’d love to get involved with some property investment once my finances are better.

    • Hi Jason,
      Thanks so much for the great compliment!
      There is never a better time to start planning that eventuality than right now.
      The first step to investing or anything really is to understand where you currently are and where you want to be.
      Financially this is super easy to determine.
      Once that is squared away then the planning can really be implemented and results realized.
      Best of luck to you and I look forward to more of your comments!

    • first we market the home to the other agnets; it’s a best practice second the listing agent is working their buns off trying to market the property; third the listing agnets has to pay up front for marketing without knowing if they will get paid; fourth we have to share the commission with our broker. Fifth all of us are working for the best deal for our clients and can not steer a client to a home because we get a higher commission; not ethical.

      • Hi Domininc,
        Yes it can be hard work to be a real estate agent but the rewards can be worth it too. I like to see you are trying to work ethically while providing the best service possible for your clients. Learn to work smarter while working hard and it will pay off with clients who begin to refer you to others! It takes time to build a business or list of loyal clients. Keep at it!

  4. I see you know where to invest in the real estate market and if I ever decide to invest I will come to this site

    • Hey David,
      Yes sir I do know where to invest.
      There are some really standout markets that I listed but there are so so many more out there.

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