Investing in turnkey properties can be an attractive option for those looking to enter the real estate market with minimal hassle. Turnkey properties are essentially move-in ready homes or apartments that investors can purchase and immediately rent out, often with property management services available to handle day-to-day operations. For those interested in this type of investment, certain U.S. markets stand out for their potential return on investment (ROI) and favorable conditions.
Top 15 Real Estate Markets to Buy Turnkey Investment Properties
1. Baltimore, Maryland
Baltimore has been recognized as a rising city for startups and is ranked as one of the best American cities for women in business. With its status as the 2nd most educated state and steady appreciation, Baltimore presents a promising market for turnkey investments. The city also boasts a 3-year appreciation forecast of around 10%, making it an attractive option for long-term growth.
2. Birmingham, Alabama
Birmingham has been noted as the 8th hottest housing market by CNN/Money and was the winner of the 2021 World Games. The city offers high capitalization rates up to 15.0% and is ranked #2 for the lowest property taxes in the U.S. With a 3-year appreciation forecast of 10.6%, Birmingham is a market that offers both immediate cash flow and potential for property value increase.
Since its year of discovery, the city has been an educational center of the state of Alabama and has been the favorite destination of many educational aspirants who come here to seek the careers of their choice. 100’s of schools have been set up in the city of Birmingham and several top-notch universities.
The city’s ever-growing population shows a need for real estate investments and developments for the good of the new growing population. Therefore, buying Birmingham investment properties is considered to be a wise decision by experienced real estate investors who know the market very well.
3. Cape Coral, Florida
Cape Coral has been recognized for its fast job growth and diverse economy. Over 50% of the population rents, indicating a strong rental market. The city is home to newly built single-family and duplex properties, which are situated in solid blue-collar areas with high rents. This market is particularly appealing for investors looking for stable rental income and a solid employment base.
4. Charlotte, North Carolina
Charlotte is the largest community in North Carolina and is experiencing rapid growth. It tops the U.S. in millennial population growth and is the 3rd-fastest-growing major city in the country. These factors contribute to a robust rental market, making Charlotte an excellent choice for turnkey property investments.
5. Chicago, Illinois
The Windy City offers a diverse economy and a stable market, with over 50% of the population renting. Chicago is the third-largest metropolitan area in the U.S., boasting a high private sector employment rate and fully renovated single-family homes in solid blue-collar areas with high rents.
6. Cincinnati, Ohio
Known as the Queen City, Cincinnati is ranked as America's 5th most affordable city by Forbes and offers some of the best rental returns according to CNBC. With a strong rental demand and a growing economy, Cincinnati presents a compelling market for turnkey investments.
7. Indianapolis, Indiana
Indianapolis is a Midwestern gem with a strong economy and a reputation for affordable living. The city has a robust rental market, thanks to its diverse economy and significant job growth, making it an attractive market for turnkey property investors.
8. Memphis, Tennessee
Memphis is known for its cultural richness and economic resilience. The city has a high demand for rental properties and offers investors a high ROI, thanks to its affordable property prices and strong tenant market.
9. Kansas City, Missouri
With a strategic location in the heart of America, Kansas City offers a vibrant economy and a growing job market. The city's affordable housing and appreciation potential make it a prime market for turnkey investments.
10. Atlanta, Georgia
Atlanta is a bustling metropolis with a strong job market and a high demand for rental properties. The city's diverse economy and population growth make it a hotspot for real estate investors looking for turnkey opportunities.
11. Houston, Texas
Houston‘s real estate market is buoyed by its vast economic diversity and significant population growth. The city's strong job market, particularly in the energy sector, makes it a stable choice for long-term investments.
There was a time when Houston seemed immune to the highs and lows of housing cycles, but it now seems to have joined the pace of the national average. The Houston Real Estate Market is becoming a hotbed of buyer activity that could be beneficial for real estate investors; just ask the multitude of overseas investors who are choosing Houston as the city of choice to invest in for the foreseeable future.
12. Dallas, Texas
Dallas is known for its robust economy and is one of the fastest-growing cities in the U.S. With a high demand for rental properties and a business-friendly environment, Dallas is an attractive market for turnkey investments. Dallas real estate market offers some great profit-generating opportunities to all types of real estate investors.
Whether you’re buying your first income property or just adding another one to the portfolio, Dallas real estate market is a great place to do so as it doesn’t get any more “location” than this. Dallas has a strong economy and a constant populations growth and will make your pockets bigger. As rents goes up smart investors should invest in Dallas real estate.
13. San Antonio, Texas
San Antonio offers a blend of historical charm and modern economic growth. This market is appealing due to its lower cost of living and strong military presence, which contributes to a steady rental demand.
14. Philadelphia, Pennsylvania
Philadelphia‘s market is driven by its rich history, educational institutions, and healthcare sector. The city's diverse neighborhoods and cultural amenities make it a desirable location for renters.
15. Columbus, Ohio
Columbus is an emerging market with a strong job market, thanks to its status as the state capital and the presence of major universities. Its growing tech industry is also attracting young professionals, creating a solid base for rental properties.
For those seeking to expand their turnkey investment properties, companies like Norada Real Estate Investments offer valuable resources and expertise to navigate these markets effectively. Remember, successful real estate investing requires due diligence and a keen understanding of the local market dynamics. Consulting with industry experts and leveraging the knowledge of specialized real estate investment companies can significantly enhance your investment decisions. Happy investing!
When considering turnkey property investments, it's crucial to look at factors such as local economic growth, rental market strength, property taxes, and potential for appreciation. Markets like Baltimore, Birmingham, Cape Coral, and Charlotte offer a mix of these attributes, making them top choices for investors looking to expand their portfolios with turnkey properties.
