When choosing to invest in rental properties, you want to get a good deal. Even before the recession hit in 2008, many housing markets faced a drop in value. While housing markets have steadily begun to rebound, deals can still be found. The three best cities for investing in rental properties in 2012 offer those deals. With high foreclosure rates and housing markets that have yet to rebound, deals are abundant, making them to perfect place to invest in rental properties.
With the decline of the auto industry and the general economic downturn, real estate in Detroit also faced a big drop in prices. Following a migration of residents from the city and a lack of jobs, a multitude of foreclosures and short sales are available for purchase. It may seem impractical to invest in a city that has lost residents and seen numerous bankrupted businesses. However, the government has invested a significant amount of stimulus money into Detroit to help bring it back to what it once was. Detroit’s government and celebrities from Detroit have also invested in the city through advertising and rebuilding campaigns. Businesses are being lured back to Detroit one by one. While it may be a few years before the city is back to normal, now is the time to get in at the beginning of a rebirth.
The housing market throughout Florida dropped during the recession. With less disposable income, many homeowners also had to sell their vacation properties or could not afford to purchase new ones, leaving a bulk of real estate available and lowering prices. Tampa offers an urban lifestyle, which works well for rental properties, with the convenience of being near other popular Florida cities such as Clearwater, St. Petersburg and Orlando. Because the city is located on the Tampa Bay, you have the ability to attract vacationers as well as residents with your rental properties and may also score a property with a view for little money.
Las Vegas, Nevada
While Las Vegas faces a drop in real estate, it continues to grow in the areas of business and development. The famed casinos and Las Vegas strip only make up a small portion of this popular city. It takes a significant population to cater to the city’s tourists, which leaves open a large city of houses to be rented and businesses to be frequented. In addition, many large companies have opened branches in Las Vegas or moved their headquarters to the city as a way of attracting employees and revitalizing their images. The fact that Las Vegas continues to grow while real estate prices have yet to rebound makes it one of the best places to invest in real estate in 2012.
When looking for real estate in one of these three cities, do not assume that every property is a good deal. Do your research to determine the average price of real estate in the area and choose investment properties that fall significantly below that line. If a property is priced low because it is in disrepair, make sure you accurately look at all costs involved in restoring the property before making a purchase. Failing to do your research could turn the potential for investing success into a loss.