The Best and Worst Cities for Investment Property

Rising property markets have brought new investors into the real estate game in cities from coast-to-coast. But not all cities are equal when it comes to investment property returns. Some of them are downright lousy.

GOBankingRates recently surveyed 61 out of the 100 most populous cities in the U.S. to find the best and worst cities to own investment property.

They analyzed markets according to:

  • Employment growth: the percent change in the city’s number of employed people year-over-year
  • Population growth: the percent change in the city’s population year-over-year
  • Increase in home values: the percent change in the city’s median home value year-over-year
  • Years to pay off property: the number of years it would take for rental income to pay off the median home value

Here are the best and worst cities:

10 Best Cities to Own Investment Property

  1. Orlando, Fla.
  2. Tampa, Fla.
  3. Denver
  4. Seattle
  5. Austin, Texas
  6. Reno, Nev.
  7. Dallas
  8. Portland, Ore.
  9. Raleigh, N.C.
  10. Miami

10 Worst Cities to Own Investment Property

  1. Anchorage, Alaska
  2. Pittsburgh
  3. Chicago
  4. Virginia Beach, Va.
  5. Cleveland
  6. Honolulu
  7. Detroit
  8. Tulsa, Okla.
  9. Omaha, Neb.
  10. El Paso, Texas

Of course, smart investors will be able to succeed even in the “worst” cities. Conversely, unlucky/ill-prepared/dumb investors will manage to lose money everywhere.

But it’s also true that the more challenging the investing environment is, the smarter you’ll need to be to succeed. Things to keep in mind before you take the plunge into real estate investing.

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