Are you planning to invest in real estate or buy a second home? No matter how experienced you are in this field, you’ll want to know the best cities to invest in and why. 

Investing in real estate is a popular way to supplement your income. Searching for the right place to invest starts with determining your investment purpose and whether you are interested in collecting monthly checks or watching your investment value increase over time. 

Let’s look at the factors to consider when choosing an investment property and the best places to invest right now. 

Charlotte, North Carolina

Often referred to as the “Queen City,” Charlotte ranks among the best in the U.S. in business and career. Real estate prices have grown by over 120% over the past eight years. 

Charlotte is also home to more than 10 Fortune 1000 companies such as the Bank of America, Lowe’s and Wachovia Corp. The median home sale price is $395,000.

• Home value appreciation: +13% year over year
• Average time on market: 41 days 
• Homes sold under asking: nearly 50% 

Detroit, Michigan

Detroit is home to many businesses and attractions, and it offers impressive nightlife with a lot of opportunities for young professionals. Among the many reasons to invest in Detroit is its rich history and present-day offerings of musical entertainment. Let’s take a look at the statistics for real estate:

• Median sold price: $75-80,000
• Homes sold under asking: 57%
• Average sale time: 41 days

Detroit is a good place to start investing, as it has a low median price and an increasing inventory of homes for sale. This combined with the number of homes sold for less than the asking price makes it a great place to get a good deal.

Cleveland, Ohio

Home to the Guardians, Cavs and Browns, this midwestern city on the shores of Lake Erie offers plenty of sports entertainment combined with picturesque waterfront views.

With more than 50% of the households in Cleveland occupied by renters, the market is an ideal place for investors.

• Median sale price: $97,000-125,000
• Home value appreciation: +6.9% year over year 
• Average sale time: 48 days 

The average sale time is high, so investors can find properties sitting on the market with owners ready to sell at a reduced price.

Orlando, Florida

Orlando is rated as one of the best places to buy a rental property. It boasts more than a dozen theme parks, so Orlando and Orange County have a solid base for tourism. 

What does that mean for investment properties? Well, it means the short-term rental market is on fire year-round. The hottest rental market in Orlando in the multi-family sector is based on key investment criteria such as cash flow, affordable property prices and a growing population and job market. 

• Median sold price: $340,000-360,000
• Home value appreciation: about 10%
• Average sale time: 32-45 days

Phoenix, Arizona

Located in the Valley of the Sun, Phoenix enjoys a booming economy with one of the high-growth populations in the U.S. It offers year-round warmth, beautiful and historical sights, a lot of entertainment and nightlife and a growing number of business opportunities. 

There are several markets in which to invest, with housing and home values increasing year over year. More than half of the homes sold below their asking price, meaning there are opportunities for good deals. 

• Median sold price: $410,000-430,000
• Home value appreciation: +8.4%
• Average sale time: 52-69 days

Atlanta, Georgia

Atlanta is referred to as one of the high growth cities in North America, and the real estate market has had steady growth over the past several years, making Atlanta a great place to live and invest.  Located in the state of Georgia, this capital city is known for its rich history, tourist attractions and notable residents. The city of Atlanta is at the forefront for any type of real estate investing. 

• Median sold price: $390,000-400,000
• Home value appreciation: +6%
• Average sale time: 35 days

If you can lay your hands on any property in Atlanta, do so before it gets snatched up by someone else. Home inventory has only slightly increased year over year. 

Houston, Texas

Houston is known for its flourishing real estate market and space exploration, among other points of interest. It’s one of the most desirable locations for real estate investment in the country, due to its strong economy and its steady job market. 

Texas’ most populous city is home to more than 2.3 million people, and the Houston area has a lot going for it as an up-and-coming location for young professionals. This makes it an attractive rental property investment location.

• Median sold price: $330,000
• Home value appreciation: +1.5%
• Average sale time: 48 days 

Minneapolis, Minnesota

The Twin City housing value gain along with its overall affordability in single-family rental homes and small multi-family buildings make the Minneapolis region one of the best in the nation for property investment. 

With solid growth and a stable economic environment, ‘metropolitan Minneapolis is one of the smartest choices for real estate investors. It’s a great example of what Midwest markets have to offer investors. 

• Median sold price: $321,000
• Home value appreciation: +1.6%
• Average sale time: 37 days

Salt Lake City, Utah

Salt Lake City is rich in culture, historical sites and natural landmarks—especially the prominent mountain ranges surrounding the city—so that this is an attractive location for residents and buyers.

The median sale price is $540,000-590,000, with both a long average time on the market and an increase in housing inventory, making it a worthwhile area to try to find a good deal.  

Home prices are high, but there are other factors that will make you want to invest in Salt Lake City, including Utah’s expanding job opportunities, low unemployment rate and low state and local taxes. 

Las Vegas, Nevada

Investing in a Las Vegas property is a great option as Las Vegas has very low investment property taxes, and the state of Nevada has no personal income tax. The average effective property tax in Las Vegas (Clark County) is 0.7%, slightly higher than the statewide average but still significantly lower than the national average. 

Combine those figures with the globally famous entertainment sector and median sales price of $390,000-400,000, and you have a potential gold mine in which to invest. 

Let Compass Mortgage help with your investment goals 

Real estate investors put their money into property for a number of reasons. Either they use the property to generate income, or they bide their time until it’s perfect to sell. 

As with any investment, there is profit and potential within real estate, whether the overall market is up or down. 

The exclusive Compass Mortgage Get Committed® program gives buyers the power of a cash offer, with a fully underwritten loan commitment that can close in as little as 15 days!  Contact one of our experienced loan officers today to discuss your questions and next steps.