How to Find Investment Properties for Sale in 2023?

May 21, 2023 by Marco Santarelli

Most newbie investors are perplexed by the question of how to find investment properties for sale. This page will focus on how to find a profitable real estate investment property. Finding the right investment property can be a daunting task, especially for beginners. With the market constantly evolving, it's important to stay up-to-date on the latest trends and techniques for finding profitable investment properties.

In 2023, investors need to keep an eye on the changing market conditions and identify the areas with high growth potential, higher rental yields, and low vacancy rates. This guide will provide practical tips and strategies for finding investment properties for sale, including distressed single-family homes, small apartment buildings, and fix-and-rent properties. Whether you're a seasoned investor or just getting started, this guide will help you navigate the real estate market and find the right investment property for your portfolio.

A good investment property often has very different characteristics than one’s dream home. For some, investment properties are those that are cheaper than average yet command average or above-average rents. This might be a “distressed single-family” home or a small apartment building. In other cases, the investment property is one in desperate need of repairs or renovations. You buy it for a low price, invest in repairs and strategic upgrades, and then sell the property.

Fix-and-rent is a hybrid of these two approaches, buying homes in need of repair, making the needed renovations and repairs, and then renting out your newly desirable rental property. You need to look for areas with high growth, higher rental yield, and low vacancy rates. You make the money when you rent it. The challenge for many is finding the right properties to buy.

Finding a good investment property can give you some great benefits such as:

Income – You earn rental income by converting your investment property into a rental.
Capital growth or Appreciation – As your property increases in value, you will benefit from a capital gain when you sell it.
Tax deductions – You can deduct certain expenses relating to an investment property such as a rental. These expenses can be property tax, mortgage interest, property repairs, property insurance, etc.
1031 Exchange: You can take advantage of the 1031 tax-deferred exchange to acquire a more valuable investment property. You can find a “like-kind” but much more valuable investment property and exchange your old property to defer capital gains taxes on profits until that property is sold for cash.

Unlike some complex investments, you don't need any specialized knowledge to invest in real estate. You need to know where you are in the market cycle and find some good deals. Let’s learn about different options to find investment properties for sale in 2023.

how to find investment property for sale

How To Find Investment Properties For Sale By Searching Off-Market Deals

The best deals are those that haven’t hit the market yet. Once the property hits the MLS, you’re going to be in a bidding war with others considering buying the same property. In other cases, you’re trying to find homes before they go up for auction on the courthouse steps. The best way to find these properties is to network with realtors. Raise the cash to pay for these properties, because distressed sellers want to close on the deal as quickly as possible.

Then begin networking with realtors. Prove to them that you can afford to buy properties you want to buy because they don’t want to waste their time or that of their distressed sellers. Once they know you’re a serious buyer, discuss the types of properties you want to buy. You may begin to get leads on homes that are going to be sold to settle an estate or as part of an upcoming divorce.

You may learn about distressed sellers who will sell to you to avoid having a foreclosure on their credit reports. In summary, realtors are one of the best resources available to those seeking investment properties for sale. Cultivate relationships with several realtors so that you’ll have a steady stream of leads. Just make sure you give each of the businesses if you want them to continue working with you.

Find Investment Properties For Sale Through Multiple Listing Systems

Buying through the MLS is still the most common way people find real estate or investment property for sale. Short for “Multiple Listing Service,” the MLS is the collection of most of the properties that all real estate agents are currently trying to sell on the market. When you search a site like realtor.com, you’ll be searching the MLS. This information is widely distributed for most eyes to see.

The problem with the MLS is that every potential buyer is searching there. It’s the largest database of properties for sale, so trying to find a good deal can be a bit difficult as you have to compete with other buyers by entering into bidding wars. Every buyer is represented by a real estate agent or broker on MLS.

Being the first one to submit a “verbal offer” on a deal can often help you get it under contract before others get to see it. Have your financing option ready before you submit an offer as most sellers want to see a pre-approval letter before accepting an offer. This can help you avoid competition, and bidding wars. Hiring a competent broker can help to close a deal as well as avoid paying far more than you should for an investment property.

Find Investment Property By Working With Real Estate Wholesalers

Wholesalers find properties, often distressed, and buy them at a bargain price. They then shop for buyers. Wholesalers may advertise that they buy houses from divorcing couples, estates that need to be settled, rentals where tenants won’t pay the rent, homes in need of dire repairs, and sellers who need to close as soon as possible.

These sellers get 50 to 80 percent of what the house is worth, but they get the cash they need to settle their financial affairs or just move on in life. In other cases, the wholesaler buys the contract for the home and then shops for a buyer. Wholesalers then sell the house to someone else. This may be to the general public, but these properties are regularly sold to investors.

Buying investment properties from wholesalers has several advantages. You don’t have to shop around for deals. You’re still free to assess the condition of the property and its relative price. They may have several investment properties for sale that you can choose from. And you don’t have to pay for the double closing if you’re going to fix and then rent out the property.

Another solution in this category is buying investment properties for sale from property developers in private investment groups. These investment properties for sale may be fixed and flipped, fix and rent out, or massive redevelopments of multi-family housing. Buying “fix and rent out” properties has the added benefit of giving you a property that already comes with known cash flow. Ironically, you might find realtors who do this type of property development on the side.

Find Investment Properties By Reaching Out to Potential Sellers Yourself

This can take several forms. One is driving for dollars or driving around looking for neglected properties. Note the address, and then send a letter offering to buy it. Another approach is direct mail to everyone in a given area. Send postcards letting everyone in the neighborhood know you buy distressed properties.

A few may contact you, and your information may be forwarded to someone they know who needs to sell fast. Direct mail only requires looking up public information regarding owner names and addresses. You don’t have to try to collect email addresses. You’re not cold-calling people in the area, something that could get you labeled a spammer.

What can you do if you’re interested in multi-family residential properties? Check the “for rent” ads. Are there developments that constantly have to advertise for new tenants? They may be willing to sell. Just make sure you have the plan to rehab the building and change how things are done.

For example, an apartment building owner ready to sell may be dealing with slow-paying tenants, high crime, or challenging government regulations. You may have to update the lease terms, evict non-paying tenants, make massive repairs, get government inspections, upgrade security features, or take more drastic action.

And you may not want to own a property in a dangerous neighborhood regardless of the ROI. On the other hand, you might find a real bargain when the soon-to-be-former landlady sells you the entire triplex so they can retire in Florida.

How To Find Investment Property For Sale Using Real Estate Websites

If you’re looking for investment properties, single-family homes can be found through traditional means like an MLS search as well as networking and direct marketing. Real estate investors looking for multi-family properties are rarely going to find this in the newspaper or the digital equivalent. Sellers of 50-unit apartment buildings and shopping malls aren’t going to list them on the average real estate listing site, either.

This is why you need to find websites like LoopNet, Realtor.com, and Costar that offer only commercial and multi-family residential properties. Sites like Zillow and Trulia rarely have such properties on their site. In some cases, you can find multi-family investment properties for sale by searching the offerings of various real estate investment groups.

People who buy, upgrade, and eventually sell multi-family properties are one of the few that will sell turnkey apartment buildings to renters. If you’re willing to take a risk and have excellent self-control, you might consider sites like Auction.com. This site focuses on housing auctions. This includes everything from land to newly built homes in foreclosure to luxury real estate subdivisions where the builder went bankrupt.

You can search their inventory for deals. You can look for properties you’re interested in. The challenge many would-be investors face is not over-bidding on the property. It is easy to get carried away when you’re trying to outbid others, though this could wipe out your profit margin.

How To Find Investment Properties For Sale By Talking to Bankers

An often overlooked way to find investment properties for sale is to talk to bankers. Let banks and credit unions know that you’re interested in buying foreclosed investment properties. You might be able to pick up newly renovated homes that house flippers couldn’t sell in time to avoid losing their shirts.

On the other hand, you might pick up a property that needs renovations completed to sell it or rent it out. In this case, bankers will be happy to give you first dibs because they know it will be hard to sell on the open market. You could also get leads on multi-family properties that are at risk of going into foreclosure.

Talking to bankers may lead you to bank-owned properties that haven’t been listed yet or were taken down off the website because they hadn’t sold yet. Better yet, they’re the ones who can give you lists of homes available for short sale. They’ll offer a discount because they didn’t have to pay the legal fees associated with the foreclosure. And almost none of the situations we’ve outlined will result in a property hitting the MLS.

Find Investment Property For Sale By Reviewing Publicly Available Information

This requires detailed research, but you may find leads for real deals. For example, reading lists of eviction notices published in the newspaper could tell you which apartment buildings have trouble with non-paying tenants. If the same property sees a steady stream of evictions, the owner may be eager to sell the property.

The same may be true of rented-out single-family homes. If you can find notice of default listings for multi-family buildings, you could make an offer before it goes into foreclosure. Sites like RealtyTrac are tailored toward searching existing foreclosures.

Another approach involves for sale by owner or FSBO ads. Owners trying to sell their own homes may be trying to save money. The property may need major repairs they can’t afford, or they may have an unusual home that’s hard to sell otherwise. In this case, you aren’t interested in the fresh listings. Instead, you’re interested in the FSBO listings that have been up for months. You already know from this that they are a distressed seller.

We would not recommend searching general real estate websites like Zillow to find FSBO properties, because it is hard to get a hold of the real owner instead of an agent working through Zillow hoping to act as an intermediary between you and the seller. However, you can use direct mail to reach everyone who has or has recently had FSBO ads to try to drum up leads.

One side benefit of this approach is that you can get very creative in the financing terms. This may include taking over someone else’s mortgage or signing a note with them to buy the property. However, we’d recommend getting a conventional mortgage to pay off their loan unless you’re going to sell the property in short order.

Always have a real estate attorney involved in this process. And have a thorough title search done every time because these kinds of investment properties for sale are much more likely to have clouded titles and issues like past-due liens. We do not recommend using tax liens as a way to get investment properties for sale.

Find A Profitable Investment Property For Sale: Contact Norada Real Estate Investments

There are many ways to find potential investment properties for sale, no matter what type of property you’d like to own. You can find a strategy that works for you, whether you have the time to do detailed research or want to be presented with several options to choose from.

Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.

NORADA REAL ESTATE INVESTMENTS has extensive experience investing in real estate and cash-flow investment properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property for sale.

Consult with one of the investment counselors who can help build you a custom portfolio of investment properties in some of the best real estate markets. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete real estate investments, we help you succeed by minimizing risk and maximizing profitability.

References

https://www.fool.com/millionacres/real-estate-investing/articles/how-find-investment-properties-outside-mls
https://www.mashvisor.com/blog/how-find-real-estate-agent-investment-properties
https://www.fortunebuilders.com/how-to-get-started-in-wholesaling
https://www.thanmerrill.com/how-to-find-investment-properties
https://www.biggerpockets.com/member-blogs/8266/64085-10-best-ways-to-find-great-multifamily-properties
https://www.biggerpockets.com/guides/ultimate-real-estate-investing-guide/how-to-find-investment-properties
https://www.thebalancesmb.com/websites-for-investment-property-for-sale-2124875
https://www.rocketmortgage.com/learn/buying-house-for-sale-by-owner
https://finance.zacks.com/risks-tax-lien-investing-avoid-7495.html
https://www.realestatewitch.com/fsbo-zillow/#The%20Problem%20with%20Zillow%E2%80%99s%20FSBO%20Business%20Model

What is Passive Real Estate Investing?

May 18, 2023 by Marco Santarelli

What is Passive Real Estate Investing?

Passive real estate investing is a way to invest in real estate to augment income considerably well without having to necessarily stress out one’s self. You are not actively involved in generating profits or income from real estate; you are a passive investor.

Passive real estate investing is when you hire or contract a real estate company to help you in finding and manage investment properties for you.
Also, passive real estate investing is defined as a process where investors contribute to real estate-related mutual funds and Real Estate Investment Trusts (REITs). This reduces the burden of running about to find properties and who to sell them for. You hire the firms to get the work done for you and then you pay them after the whole process.

‍There’s more to real estate investing than just buying distressed properties and flipping them for a profit. You need to consider the long-term value of the properties you are buying and the capitalization rate of return that is expected from your real estate investments. If you are serious about this type of investing, then you need to understand how to improve your chances of success. This article will provide some great tips so that you can make money in the real estate industry.

There are two basic ways to make a profit in passive real estate investing; one of them is direct income from rentals. Once the income surpasses the expenditures, then you are on the winning side. The other way you can benefit is by increasing the value of your investment property and mining the equity that you generate. You either can take low-interest loans against the equity or sell your investment property for a profit and reinvest by buying more investment properties.

5 Passive Real Estate Investing Tips to Help You Make Money

1. Research is key

Many people will only venture into real estate after they have already discovered that they enjoy it. However, the research phase needs to be done very early on in order to have a high chance of success. If you are just going to throw money at a project, it is unlikely that you will get very far. You will probably lose money even if the property appreciates in value by a factor of 10. Most real estate investment ideas will require some level of research in order to make sure that you are getting good value for your money.

2. Know the Market

As mentioned above, some of the best real estate investments are in areas that are experiencing strong growth. If you are buying a foreclosure or a bank-owned property, then you will most likely find that there is a large pool of potential tenants. If the rental market is strong, then you could potentially make a nice profit by taking advantage of low vacancy rates to fill a property. If the market is weak, then you could potentially lose money if you are not careful. I

It is best to know the market well in order to make sure that you are getting good value for your money when you invest in real estate. The market is always changing, so it is important to know what has been going on recently in order to make informed investment decisions. The best way to do this is to get on the ground and see what is happening in the local real estate markets.

3. Know The Different Types Of Real Estate Investing

There are many different types of real estate investing, and it is important to know which ones are best for you. There are three main categories when it comes to real estate investing: fixed assets, discretionary, and real estate investment trusts. This is because these are the main types of real estate that you will find in most residential and commercial real estate projects. What differentiates one type of real estate investing from another is the amount of risk that is associated with each type.

Investing in REITs

You can invest in REITs in a variety of different ways, including purchasing shares of publicly traded REIT stocks, mutual funds, and exchange-traded funds. REITs generally own and/or manage income-producing commercial real estate, whether it's the properties themselves or the mortgages on those properties.

You can invest in Retail REITs, Residential REITs, Healthcare REITs, Office REITs, and Mortgage REITs. REITs will provide you with high dividend yields along with moderate long-term capital appreciation. They can become an excellent addition to your diversified investment portfolio. You must find companies that have done a good job historically in giving dividends to investors.

Real Estate Crowdfunding

The New Opportunity for Passive Real Estate Investing is in Crowdfunding. Since 2012, over 100+ real estate crowdfunding sites have come into existence. Websites like RealtyShares allow investors to access different real estate projects. Investors can get access to different property types and locations across the country. You can invest in real estate alongside thousands of savvy investors. Through RealtyShares, you can invest as little as $5000 and choose over 1500 funded deals.

Investing In a Turnkey Rental Property

Investing in a turnkey rental property is one of the wisest investment decisions you can take today if you are in search of how to make passive income in real estate. A turnkey rental property can be competently managed through a property management company. Therefore, your investment in turnkey rental properties is relatively safe, secure, and hassle-free. In turnkey property investing, everything is done for you.

You would simply purchase an investment property, let the professionals oversee it, and collect your monthly cash flow income, while your tenants would increase your equity or pay off your mortgage. After purchasing the property, you leave every other thing to a turnkey property management company and expect your monthly passive income to flow into your bank account. In addition, the firm ensures that your property never remains vacant.

Finding good tenants on your own can be a big hassle. A good tenant will take care of your property and pay you to rent on time. A bad or disgruntled tenant can cause havoc on your property in many ways and leave it in ruins. Another way of going about passive real estate investing is to hire people who are trustworthy to help you in locating properties in good neighborhoods.

Then, call on a good and experienced contractor to help you renovate the property and do every other necessary repair so that the property can become very attractive before you put it on market for rent. Now you can contract a trusted property management company for collecting rent, handle repairs and maintenance, addressing complaints of your tenants, and sending money to your bank account every month. Isn't it an easy way to generate a passive income?

Click on the link to know all the benefits of investing in turnkey rental properties, which is one of the best ways of passive real estate investing. As much as passive real estate investing looks very good and attractive in theory, it requires time, dedication, and most importantly, taking the right steps before it starts yielding profits.

4. Find The Right Property For The Right Transaction

You will never know if you have all the right properties to invest in and the right people to partner with. It is best to find a real estate partner with whom you are comfortable sharing some of your hard-earned money. You can’t just throw money at a project and hope for the best. If you want to make sure that you are getting good value for your money, then you will need to work hard to find the right project for the right price.

In many cases, you will have to do some serious research in order to find the right project. It is also important to remember that no two real estate transactions will be identical. There might be a market that is oversaturated in a certain type of property, and you may have to look in another location. The important thing is to find a project that you can relate to. If you aren’t feeling 100% comfortable with a certain type of deal, then don’t invest in that type of project. Stick to projects that you are familiar with, and feel safe with.

5. Be Aware Of Capitalization Rates

You will almost certainly make money over the long term when you invest in real estate, but you also need to consider the long-term value of the properties you are buying and the capitalization rate of return that is expected from your real estate investments. While flipping real estate, you will most likely be purchasing properties that are under renovation or have been abandoned.

These types of properties are at risk of being taken advantage of, so it is important to understand the capitalization rate of return that is expected from these types of investments. The capitalization rate of return is the percentage that you are expected to pay back on your investment. In many cases, the property will appreciate in value over time. In other cases, the property may decline in value, in which case you will need to pay back your capitalization rate of return.

This is very difficult to predict, so it is important to understand the capitalization rate of return that is expected from your real estate investments. There is no way to tell whether a project will appreciate in value or not, so it is important to understand what you are getting yourself in for. You can find out more about real estate capitalization rates in this article.

Conclusion

A passive income is defined as the income that you receive regularly which involves little effort on your own part. That is, while some other persons do the herculean part of the job, your own involvement does not really count but you get a huge part of the gain at the end of the whole process. You are certain of the inflow of money on a regular basis, but you don’t participate in the running of the business.

So, passive real estate income is the income you get regularly from real estate investment without playing an active role in the whole process. You get paid every month, quarter, or year but do not participate in the management or contribute work in the investment. Even though passive real estate investing is one of the most lucrative investments people can consider doing, the truth is that the investment requires a little bit of your attention in order to succeed as intended.

You have to be kept abreast of the activities of the firm you’ve invested your money in so as not to be jilted investor. However, if you are certain of the firm you are dealing with; you can always relax and attend the periodic meetings if there are any. Real estate is a great way to make money if you are willing to put in the effort.

There are many different types of real estate investing, and it is important to know which ones are best for you. If you are interested in real estate, then it is smart to get on the ground and do some research in order to make sure that you are getting good value for your money. There are many different types of real estate investing, and it is important to know which ones are best for you.

There are three main categories when it comes to real estate investing: fixed assets, discretionary, and real estate investment trusts. The capitalization rate of return is the percentage that you are expected to pay back on your investment. In many cases, the property will appreciate in value over time. In other cases, the property may decline in value, in which case you will need to pay back your capitalization rate of return.

18 Best Real Estate Investing Books For Beginners 2023

May 18, 2023 by Marco Santarelli

Best Real Estate Books on Investment

Real estate investments can provide excellent returns if the proper steps are taken, but many new investors lack the necessary skills and education. I wanted to discuss the significance of real estate education through books. This article will present the 18 best real estate investing books to get you started in 2023. If you read all of these books, you will gain a lot of knowledge and learn from the case studies of top investors who have had great success in real estate investing.

Are you a real estate investor? Are you planning to invest? Real estate investing is an ever-evolving industry. Real estate is regarded as one of the best investments that a person can make. But why do so many people struggle with it? The first step is to prepare your mind and habits for success. You will also require adequate real estate education to assist you along the way.

Why Should You Read the Best Real Estate Books as a Beginner in Investment?

Well, real estate investors disagree on many topics, but one that nearly all agree on is the necessity of investing in yourself. There are literally thousands of books out there that deal with real estate investing, and I've probably read a lot of them! These are my choices of good books on real estate investing for this year. What about you?

Reading books is one thing, but where do you start? To be successful as a new real estate investor, you need to learn but it can be hard to sift through all the books to choose from. Finding a good real estate book can be difficult, especially if you don't read a lot. So I've created this list and I felt I would give it to you in a way that breaks it down into several categories.

I want it to break it down into the following areas, mindset, finance, and investing real estate investing for beginners, which is really from beginners to intermediate level investors, and then real estate investing books to grow your business. So once you've gotten started just continue to grow and scale books on property management and books on taxes, or more specifically on how to save and minimize your taxes.

So that's essentially six categories. Now, keep in mind, this is not an exhaustive list. There are literally hundreds, if not thousands, but hundreds of books on real estate. In fact, if you don't believe me, just go to amazon.com and type in real estate investing or even just real estate. And you will see there are a lot of books and that's the problem. There are just too many books to choose from, and it's really hard to know which ones are good, great, or bad. And believe me, there are many bad books out there.

The other thing too, to keep in mind is that if you don't like reading, or if you're a slow reader, you can get the audiobook version of most, or probably all of these books that I have on the list today. So whether it's print or audio, there's something for you today. In fact, you could actually have both. You could read when you have the time to read and listen to the audiobook in the car, or when you're doing stuff around the house or going for a walk.

And last but not least, I will edit and continue to edit and add to this list from time to time. So it's a living, breathing dynamic list. It's not static, it's not a one size fits all list, but I wanted to pick what I felt were the best books for this list at this time. So with that, let's start with the first of the six categories and that is the mindset.

So I've tried to keep it to about anywhere from two to four books per category or section, it's probably an average of three books per section. And what I'm going to do is just tell you the book and give you a brief description of that book and what you can expect from it. And then you can just decide on your own, whether it's something you want to listen to or read. So the three books that I picked for mindset start with a classic, a perennial classic, and most people would think I'm going to say, Think and Grow Rich.

That is a great book. And I do recommend reading the classic, the original book, not the revised edition of it. If that's a book that you haven't read or it's been a long time and you probably should go back to reading it because Napoleon Hill's come out with a lot of great books and a lot of great content because he had access to some of the wealthiest people in the country back in the day.

18 Best Real Estate Investing Books For Beginners 2023

Below, you will find 18 of the best real estate investing books for beginners recommended by entrepreneurs and investors. Read these real estate books in 2023 to become successful in this business. These books are vital to get success in real estate. They will form the backbone of your success for years to come. These books are not just real estate specific, they will also help you develop a winning mindset.

1. The Richest Man in Babylon

But my first pick is The Richest Man in Babylon. And again, this is the original edition that I'm referring to, not the edited or revised edition for the 21st century. Get the original text. The Richest Man in Babylon is based on Babylonian parables, and it has been hailed as the greatest of all inspirational works on the subject of thrift and financial planning, and personal wealth in simple language, these fascinating and informative stories in the book set you on a sure path to prosperity and it's accompanying joy.

So these are just great stories. It's not really a how-to book. It's more of a storybook than anything else, but it is a celebrated bestseller. And it often offers an understanding and a solution to most people's personal financial problems, whether they know it or not, it identifies what your problems are, but revealed inside of the book are the secrets to acquiring money, keeping the money, and making money, earn more money for you, which really parallels perfectly with what I talk about all the time.

And that is the three categories, buckets, or areas of creating wealth. And that makes money, grows your money and protects your money. So anyway, stick to the original edition. It is the original uncensored version of the book, the language of the content, and the message from the author. George S Clason, I believe that's how you pronounce his last name.

2. The Compound Effect: Jumpstart Your Income, Your Life, Your Success

And this book was actually written in 1926. So it's way back there. In fact, it's even before Napoleon Hill's Think and Grow Rich. Now, fast-forward to the recent past as in the 21st century, the next book I'm sure many of you are familiar with, but probably most of you are not a book by Darren Hardy called The Compound Effect: Jumpstart Your Income, Your Life, Your Success.

This book reveals the core principles that drive success and The Compound Effect book contains the essence of what every super achiever needs to know practice and master to obtain those extraordinary results, extraordinary success. So in this book, they talk about things like how to win almost every time, the number one strategy to achieve any goal and triumph over your competition.

It really is a book to help separate and differentiate yourself. It talks about eradicating bad habits and we all have bad habits. And often those derail your progress. It talks about the real lasting keys to motivation, kind of like what Tony Robbins talks about, but more so. And that is how to get yourself to do things you don't feel like doing.

And I know we're all there at various times of the day, the week, the month, how to capture that elusive awesome force of momentum. Because once you get going, you feel like you want to keep going. You don't want to stop because once you get going, it's almost hard to stop, and talks about many other things and something he refers to as the acceleration secrets of super achievers.

So The Compound Effect has a great title because small successes compounding on small successes lead to larger successes, which continue to compound on themselves. And so once you have that momentum, it continues to grow. But if you're serious about living an extraordinary life, then read this book. It will help to create the success that you desire.

3. High Performance Habits

My third book pick here is from Brendon Burchard, someone who I had on the show, not too long ago, I think it was about a year, year, and a half ago. Great guy. In fact, our interview went so long. I had to split that episode into two parts. So you could look for that episode. And I believe it was called High-Performance Habits, which happens to be about the book that he wrote.

One of his last books is called High Performance Habits. How extraordinary people become that way. So 20 years ago, or so Brendan became obsessed with answering three questions. He wanted to know why do some individuals and teams succeed quickly more quickly than others, and actually sustain that success over the long term. You wanted to find out of those people who actually pull it off, why are some miserable?

And then the other group are consistently happy on their journey. And thirdly, you wanted to know what motivates people to reach for higher levels of success in the first place. And then what practices help them improve the most. So after doing some extensive, original research that he does in his own company, and after a decade, as the world's leading high performance, coach Brandon found the answers to these three questions.

And it turns out that just six deliberate habits give you that edge. Now he says that anyone can practice these habits. And when they do extraordinary things happen in their lives, in their relationships, in their careers, it really is a good book. It is definitely well worth reading regardless of what you do in terms of your job or career, business, or practice. It really is a book on becoming a high performer. And to become a high performer, you must seek clarity.

Clarity is so critically important. You have to know how to generate energy. You have to know how to raise necessities, increase your productivity, develop influence, and then lastly demonstrate courage. And this is what he talks about in the book. So it's really the art and the science of how to do it all. And that's what you're going to learn by reading this book or listening to the audio.

So those are my three picks and believe me in this category about mindset, literally, there are over a thousand books. I mean, there is so much out there from Brian, Tracy to Tony Robbins and you name it. But these three are, I think very, very fundamental. In fact, I would argue that they are cornerstone books, The Richest Man in Babylon, The Compound Effect, and High-Performance Habits will improve and change your life. Okay. That's the first category.

The second category is finance and investing. And again, this is one of those sections where there are literally hundreds of books. And again, it's hard to narrow it down, but it wasn't too hard for me to pick. What I feel are probably the three cornerstone books, regardless of how experienced you are how much, you know, how seasoned you are, or how wealthy you are.

Because the fundamentals and the principles found in these three next books are great as a refresher. I'm sure you're going to read it. And there are things that you never knew before, and it's just great additional knowledge.

4. Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

So the first one is probably no surprise to anybody. I'm sure most of you have read this at some point in the last 22 years, it's been that long, but many of you know of it. So it is Rich Dad, Poor Dad, what the rich teach their kids about money that the poor and middle class do not buy. Obviously, Robert Kiyosaki, this book has since become the number one personal finance book of all time.

It's been translated into dozens of languages and it's been sold all around the world. I'm not even sure how many millions of copies this book has sold, but it has become a modern-day classic finance classic. So Rich Dad, Poor Dad is Robert's story of growing up with two dads, his real father and the father of his best friend, his rich dad.

And it talks about how both of these men, his fathers shaped his thoughts about money and investing. So the book explodes the myth that you need to earn a high income, to be rich and explains the difference between working for money and having money work for you. And that's a key distinction.

And a lot of the book builds upon that concept, but the book is great because it challenges the belief that your house is an asset, which most people still believe to this day. It is not, it is a liability. And if you don't know why to read the book, it shows why parents rely on the school system to teach their kids about money and why that's a mistake in that.

Doesn't actually work. It defines once and for all, what an asset and a liability truly are. It makes simple definitions for this stuff. And it teaches you what to teach your kids about money for their future. So if you're a parent listening to this and you want to help your children become financially literate and increase their financial IQ, this is a foundational book. It's one of the starting books if you will.

5. Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom

So the second book, no surprise is going to be the second book in what is essentially a three-part series of the Rich Dad series of books. These are the three foundational books, but the second book is Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom. This was the second book. So rich dad's cash flow quadrant is a guide to financial freedom.

It picks up where the last book left off first book, rich dad, poor dad. So as the second book in the rich dad series, reveals how some people work less, earn more, pay less in taxes, and learn to become financially free. So cash flow quadrant was written for those people who are ready to move beyond what they feel is job security.

And I say that in air quotes and enter the world of financial freedom. It's for those people who want to make significant changes in their lives and take control of their financial future because this is more of the how-to Rich Dad, Poor Dad was more of the foundational book, kind of laid out the principles and the concepts and some of the definitions that you need to know such as a profit and loss statement, a balance sheet, how money flows and all that, this builds on top of that.

Robert believes that the reason most people struggle financially is that they've spent years in school, but we're never taught about money. And Robert's rich. Dad taught him that this lack of financial education is why so many people work so hard. All their lives it's to work for money, instead of learning how to make money work for them, they basically just work for money.

So this book will change the way you think about your job, your career, owning your own business. And hopefully, it will inspire you to learn these rules of money that the rich use all the time to build and grow their wealth.

6. Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle-Class Do Not

The third book again, no surprises. It's not going to be a shocker. It's really the third book in that rich dad series. And these books work well together. They're built to be stacked on top of each other. So the third book is Rich Dad's Guide to Investing: What the Rich Invest in, That the Poor and the Middle-Class Do Not. So investing obviously means some different things to different people.

And there is a huge between passive investing and becoming an actively engaged investor. And one is not better than the other. There's no right or wrong. We're both at different times in our lives. And it also depends on what we're actually doing. We're always going to be active or passive investors.

Usually, we're both, but you just need to understand the distinction there, becoming an active investor means you're an engaged investor. And so there's a lot of power in that. So rich dad's guide to investing is one of the three core titles in this series. And it covers the basic rules of investing, how to reduce your risk in investing, how to convert that earned income you get from your active job or career, and turn that into passive income.

And he talks about something he refers to as rich dad's 10 investor controls. And this is where he gets into the weeds gets deep into the concepts of investing. So the rich dad philosophy makes a key distinction between managing your money and growing it and understanding the key principles of investing is the first step towards creating and growing wealth.

So this book delivers guidance. You need to help begin that process of becoming an investor and stay on that road till you get to that point of financial freedom. It's really more of a guide. In fact, the title says it is all rich dad's guide to investing. All right, well, those are the three books in the finance and investing category, and it's really the trio, the three rich dad series books, the initial or the original books.

7. The Ultimate Guide to Passive Real Estate Investing

Now let's talk about real estate investing for beginners. So this was a little bit challenging for me. In this category, I ultimately decided on four bucks instead of three for this now keep in mind, even though I'm calling it real estate investing for beginners, these books apply to almost everybody. Even if you are a seasoned or an experienced investor, there's a lot of stuff you can learn from these books.

If not every chapter, certainly some of the chapters in these books and the first one is really not a book at all. In fact, it is my ebook that has been a free download on our websites for the last probably 10 years, which has been downloaded literally tens of thousands of times. And I wrote this 40, 42-page ebook as a primer for people to understand the key concepts and key components of investing in real estate, leaning towards passive investing, meaning buy and hold, not flipping real estate, or to actively involved.

It's really about building a portfolio, creating wealth, creating passive income, and learning the fundamental key pieces. So it is really a great primer. So you read it, it's a great starting point, but then you build on top of it with these other books. So The Ultimate Guide to Passive Real Estate Investing the free download on our website is really about the most powerful way to accumulate wealth.

This guide that I wrote has been written to help educate all real estate investors, regardless of their experience level. And again, it's a primer. It talks about the advantages of income-generating real estate, how to analyze properties, key metrics, cash flow returns, what to look for in the quick test to see if a deal is worth even pursuing.

So it's kind of like the smell test, if you will, how to choose some of the best markets and neighborhoods. I try to pack it all in there. There's no fluff. It's just crammed with good information. So if you haven't downloaded a copy or read it, go ahead and do so. I'm going to be updating that soon to kind of a version 2.0, so I'll expand on it a little bit. And I'll just tighten up a few things in there based on today's economy and environment, but not much has changed because principles don't change. All right.

8. How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started

The second book in the real estate investing for beginners series here is How to Invest in Real Estate: The Ultimate Beginner's Guide to Getting Started. This book was written by Brandon Turner. He's got several books. I've picked a couple of his and this book is great if you're starting and good if you're a moderate level investor.

So everyone knows that real estate investing can be a powerful way to build wealth and achieve true financial freedom. But because each person's journey is going to be a little different knowing the first steps to take is challenging for some people. So what this book does, it becomes a manual of sorts on getting started in real estate investing.

It gives you essentially an insider's look at the many different niches and strategies that exist. So it's not all about passive real estate investing. It's got a little bit of everything and it just kind of help to paint pictures. In other words, it shows you the landscape and then you can choose your path.

So what you can do is find which strategy and path work best for you, and then help you build the resources and the goals around that. Unlike most real estate books, this one won't tell you that there's any one secret path, okay. It is considered by many one of the best books on real estate investing.

9. The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits, Most Investors Miss

There's more than one path to success in real estate, but it has more than 40 real-life stories in the book from other investors on how they achieve success in real estate investing. And I'm sure you're going to be able to relate to many of those stories. There are a lot of similarities, but there are differences between every person and every story.

All right, the next book, the third book, if you will, is The ABCs of Real Estate Investing: The Secrets of Finding Hidden Profits, Most Investors Miss. And this is by one of the rich dad advisors, Ken McElroy. He is a sharp guy. You know, I've talked to him in the past. I've had him on the show at one point and you know, I like his content. Now he's really a big real estate guy.

He's focused primarily on big multi-family apartment complexes, but he did start with, you know, small real estate, single-family homes. And that doesn't mean that there's a migration path here. Some people will start with, you know, multi-units and apartments and work their way down to single families, duplexes, and fourplexes, and other people do the other way around.

And while other people just stick with one and stay with it. So you can create wealth and passive income with every size and type of real estate. But with his book on the ABCs of real estate investing, he kind of geared it more towards the people who are just getting started in the beginners and just real estate investing.

Think of it like real estate investing one Oh one, but he talks about things on achieving wealth and cash flow using real estate. You know, what a property is potential is how to unlock the myths that float around real estate for people who are seasoned, how to negotiate deals, evaluate properties and the purchase price, how to increase the income on a property, and ways to properly manage a property.

10. Long-Distance Real Estate Investing

Now he doesn't get into property management in any depth in this book, it just touches upon it. He actually has another book on that topic, which I'll talk about here in a minute. And then the fourth, if you will, fourth and last book in this category is Long-Distance Real Estate Investing. Now I love that title. He doesn't get too deep into it, but it is a good book. It's by David Green.

It's one of the bigger pockets series books. But you know, what he talks about is living in a hot market or a market that's not suited for buying hold investing because it's just unaffordable too expensive. The numbers don't work, whatever the case is, but he poses the question. Well, how do I take advantage of building wealth in real estate? When I live in a market that I can't invest in, it's impossible, or how do I avoid, you know, market fluctuations or the next market crash.

So we know real estate investing is one of the greatest vehicles for creating wealth, but you need to understand how to choose markets and be able to be nimble and agnostic. And this is stuff I talk about on the podcast all the time, and this is what he talks about in the book. I just wish he would get more deep into the concept of done for you and rent, ready properties, and turnkey properties.

He touches upon it. But to be completely honest with you guys, I have always found since the beginning of bigger pockets in 2007, they've always had a bias towards turnkey, real estate investing, and passive real estate investing in general. They are certainly of the active, real estate investing flavor. They certainly believe in buying, fixing, and creating value on properties.

It seems that to me, that most, if not all of their content, either excludes conversations about turnkey investing, buying properties that are essentially rent-ready. So you don't have to do any fix-up or renovation work. They're all about putting in sweat equity to create value. That's fine, but that's not for everybody. And we all know that a lot of us are busy. We don't want to go down that road.

We just want to invest in real estate and build a portfolio and let it grow over time. So I'm not knocking the book. The book is good. I just wish he had more on the topic of passive real estate, investing, turnkey, real estate, investing, and done for you models instead of hiring a team outside of your local market to essentially do all the grunt work, swinging the hammers, and everything else, that's fine.

But I think he glosses over a little too much. In fact, all the “Bigger Pockets” books gloss over the turnkey space. So in this book, real estate investor and police officer David Green, shows you how he's built a multi-million dollar portfolio through buying, managing, and flipping out of state properties. So keep that in mind when you read it, but he does share tips, tricks, and systems that he's put in place over the years of his real estate investing experience and journey and what he's done to essentially succeed and avoid making mistakes along the way, but just realize that's the perspective.

Anyway, the bottom line with this book, and what I like to talk about all the time is to don't let your location dictate your financial freedom, learn how to succeed regardless of where you live and where you invest, choose the right markets, the right neighborhoods, the right properties, and have the right team around you. And that will be a secret if you will, or a formula to your success.

11. The Millionaire Real Estate Investor

All right, the next category is real estate investing to grow. So this is kind of the next level up. One of my favorite books that I read in real estate investing is The Millionaire Real Estate Investor by Gary Keller, Gary Keller well-known author. He is obviously the founder of Keller Williams, the real estate brokerage nationwide real estate brokerage. So he is a real estate investor and a very good one.

Anyone who seeks financial wealth first needs to learn the fundamental truths and models that drive it. And this is what he talks about in the book. So the millionaire real estate investor represents the collected wisdom and experience of over a hundred millionaire investors from all walks of life who have pursued financial wealth and achieved it through real estate.

And so what he did is he basically created this book in a straightforward, no-nonsense way that reveals the strategies that these hundred millionaire investors have used to create financial freedom, independence, and a lifestyle that works for them. So this book essentially is a handbook that has tried and true financial wealth-building principles and models built around real estate that reward your patience and perseverance, and he lays it out.

So some of the things he talks about are the myths about money and investing and especially the ones that hold people back and really how to develop a mindset of a millionaire investor, which goes back full circle to where we began about mindset. You know, even when he talks about this in the beginning part of the book, he talks about how to develop sound criteria for identifying great real estate investment opportunities, how to zero in on key terms and parts of transactions and achieve the best possible deals when you're putting a deal together or looking for a deal.

He also talks about how to develop your dream team, which is something I talk about often proven models and strategies that millionaire investors use to track their net worth understand finances. It's not a very complex or complicated book. It's not going to put you to sleep or cause your eyes to glaze over.

12. The Book on Rental Property Investing

I think it's extremely well-written. So again, it's one of my favorite books. It's a blue and white book. The next book in this category on real estate investing to grow is The Book on Rental Property Investing. Again, this one is the second one by Brandon Turner. So in this book, he discusses practical strategies that investors around the world use to build significant cash flow with their rental properties. So this is getting a little bit more into the weeds, a little bit more tactical if you will.

So in this book, you'll learn how to build an achievable plan, how to find good deals, how to analyze those properties and those deals build your team, finance, the rentals, and a whole bunch more, and basically everything you need to become successful at rental property investing. Again, it's a book there's only so much you can put in the book, but it does a good job of laying it out. This is one of the best books on real estate investing. This book will feed what you need to succeed in rental property investing.

13. Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals

Okay. So again, think of it like a, a, a practical guide. So there's a lot that he covers in this book, but you know, he starts with why real estate investors fail and how you ensure that you don't. And he talks about four easy-to-follow strategies that you can build your real estate portfolio on creative tips to find those deals, how to achieve success by avoiding property management, which, you know, we all love actionable ideas on financing.

Those rentals. Now, obviously, there are limitations there, but for the most part, it's going to be cheap financings like conventional loans and a little bit of advice on keeping your wealth by deferring and eliminating your taxes, which you know, is really not an extensive part of the book, but essentially something we'll talk about here in a minute last but not least. I included another book by Ken McElroy, and this is the Advanced Guide to Real Estate Investing: How to Identify the Hottest Markets and Secure the Best Deals.

So if you're interested in the real estate investing space, you may have noticed that this part of real estate doesn't get covered much. And when it does the mainstream media focuses mostly on, you know, stocks, bonds, mutual funds, and that kind of stuff. And they don't really talk about real estate as an investment, all that much. It's really about homeownership.

And even when they do talk about it, it's like, Oh, it's like this one, nebulous bob, they refer to as the housing market, but they don't really talk about specific markets unless you're listening to your local news channel, but that's because financial publications, TV, radio, um, they make the bulk of their money from advertising paid by the very companies who provide the mainstream media and those channels with financial services, the advertising, the marketing, all that stuff.

But real estate investment is something that you can do on your own without a large amount of money upfront, as we all know if you just learn how to do it and pick the right markets to do that. So what Ken did with this book is he picked up where he left off in the first book, the best-selling book, ABCs of real estate investing. And he reveals the next essential lessons and the information that you need as an investor to succeed and continue to scale and grow your business.

So he built on the foundation of the first book, which is kind of like real estate investing one-on-one and he talks more about how to think and operate like a real estate mogul. How do identify and close expert deals, you know, differences between single multi-family property surrounding yourself with the right team to maximize your money, avoid paying thousands in taxes, by structuring property sales wisely? This is a kind of asset protection and tax strategy combined, and last but not least important projections about the future of real estate investing. Now, this book is a few years old, so, you know, I'm sure some things have changed.

14. TheABCs of Property Management: What You Need to Know to Maximize Your Money Now

I don't think Ken was expecting the amount of appreciation that we would have seen over the last two, three years and the lack of inventory. So it kind of compounds what he talks about. The next section is about property management. And so again, Ken wrote a third book on this subject because this is where he actually started his real estate career as a property manager.

And so his book is The ABCs of Property Management: What You Need to Know to Maximize Your Money Now. So as you start to invest and you build your portfolio, the question comes up, you know, how are you going to make it as profitable as possible? And how will you maximize its potential and make it grow in value? And the one word he has for this is management.

Now that doesn't mean you managing the property, although you could, if you want it to, there's nothing wrong with that. And it's probably good to understand how to manage your property, but if you're managing your managers, this is good information. So this book can reveal the key to his success, and that is exceptional property management.

So he teaches you the most important principles and the keys to achieving success, where other people fail, which is often in the management of their properties. So he talks about things like how to decide, you know when to manage your property and went to hire someone, to do it, how to implement the right systems.

If you're doing it yourself structures for your investment, how to manage and maximize cash flow, you know what to expect, essentially it's the life of an owner-manager and how to find the right property manager and avoid the wrong ones. So I think this is a good book as a frame of reference, whether you manage or you don't.

15. The Book on Managing Rental Properties

The second book is if you choose to manage your own properties, it's another book by Brandon Turner called The Book on Managing Rental Properties, a proven system for finding, screening, and managing tenants with fewer headaches and maximum profits. This is definitely a book for a do-it-yourself. So if you want to manage your own properties, even if it's just one or you already manage your properties, this might be a good supplement to that.

So no matter how great, you know, you are at finding real estate deals, if you, I don't want to manage your properties well or correctly, you're obviously leaving money on the table, or you're not maximizing your returns. Brandon likes to say that being a landlord can be fun, but only if you do it right. So learning to effectively manage your tenants means that you end up with more freedom, less drama, higher profits from your real estate business.

And it just ends up looking good, feeling good. So Brandon's a, you know, an experienced property manager, he's been managing his own properties for a long time. And what he does in this book is essential takes you on an insightful tour of their management business there as in, you know, him and his wife. So you can learn how they've been able to maximize profit, minimize their stress.

He says that he has a blast doing it. So I guess you can learn how to do that too. But he talks a lot about his personal stories of the mistakes that they've had, and that you can learn from. And he talks about the different tools and tricks and systems that they've put in place over the years. And the book probably will change the way you think about property management altogether.

So there's a lot of stuff he covers in the book. I think it's more than a beginner's book. It's certainly a primer, but it has some advanced content. So overall I think it's great. And last but not least taxes, you know, the thing we want to defer or eliminate as much as possible. So I have three book picks here. There are many books out there on taxes, but I think these are great fundamental books.

And really what I've tried to do again, is boil it down to the best two, three, or four books in each section that will give you everything. You need, the nuts bolts strategies, tactical plans, and not leave you hanging. So the three books I chose for the area of taxes is first and foremost, the book by Tom Wheelwright, another one of Robert Kiyosaki's rich dad advisors, great guy, super smart. I've had him on the show several times. Always have great episodes talking to Tom, but his book, which he just revised recently.

16. Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

So it's the newly revised version, but it's called Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes, what a great title. So I will say that this book is slanted a little bit more toward business owners and entrepreneurs, but it applies to anybody and everybody because if you pay taxes in any way, shape, or form, you're going to learn something or you can learn something from this book.

So tax-free wealth is about tax planning, concepts, and how to use the tax laws to your benefit. So Tom explains how the tax laws work and how they are designed to actually reduce your taxes, not increase them. The key here is to understand how taxes and tax law works. So the book explains how to use the tax laws to your advantage, and in ways that will support your vision and growth plans, not only for your company or your business, but you know, for your investing empire as well, however, that is structured and you know, more specifically real estate.

17. The Book on Tax Strategies for the Savvy Real Estate Investor

So once you understand the basic principles of tax reduction, then you can immediately reduce your taxes to the point where eventually you may be able to legally eliminate and contactless and drastically reduce your taxes overall. And he talks about this in the book. So it's about minimizing, eliminating, and deferring your taxes.

Those are the three things he talks about in the book. Now, once you get through that, there are two books specifically on real estate investing, as it relates to taxes. And the first one is The Book on Tax Strategies for the Savvy Real Estate Investor. The subtitle to this book is powerful techniques.

Anyone can use it to deduct more, invest martyrs, and pay far less to the IRS. The book was written by Amanda Hahn. She actually lives in Orange County here, not too far from Ireland. And what she talks about is ways to maximize your deductions for your real estate business.

18. The Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors

And they also talk about practicals on how to minimize your taxes, not only for this year but in future years, as well as ongoing strategies that will make your next tax season that much easier. So what they want to do is basically help you save thousands of dollars by having great tax strategies in place.

So they talk about creative methods to maximize your deductions, clever ways to write off your kids' strategies, to write off every penny on your travel tips and tricks to cut down on bookkeeping time, and simple procedures that will protect you from IRS audits. So that's their first book, the foundational book, there's a lot in that book, but then they wrote a sequel to it, which is my third book in this category of taxes again by Amanda Hahn.

And this is The Book on Advanced Tax Strategies: Cracking the Code for Savvy Real Estate Investors. And you know, what they say is that when it comes to taxes, it's not about how much money you make, but how much money you actually keep. So if you're tired of working hard all year, just to lose, you know, the largest chunk of that money that you earned to the IRS, then, you know, obviously you want to learn as much as you can about taxes, you know, believe it or not.

The US tax system is filled with loopholes designed specifically to benefit real estate investors. And this actually got better in 2017 with the new tax act that was put into play under the Trump administration. So what was great as far as tax benefits for investors and real estate investors actually got even better with that tax act. So this book is a comprehensive follow-up to the book on tax strategies, which was a best-selling book by Han and Matthew McFarland.

And this just brings you more strategies to slash your taxes and turn your real estate investments into a tax-saving machine. And, you know, again, this book just goes deeper into a lot of the stuff from 10 31 exchanges to taking advantage of opportunity zone, tax benefits, how to supercharge your nest egg with self-directed investment strategies, steps to use your rental properties to legally wipe out your taxable income.

What else did they talk about in their ways to take advantage of the tax reform benefits that came about with all your real estate deals, accelerating your depreciation, and even common retirement and investment tax traps, and really how to avoid those? So, you know, people sometimes make the mistake of investing in their retirement account and then only find out that, you know, they've made a mistake. They don't have any tax benefits or maybe are not liable for tax penalties because they did it wrong.

Here's another blog that you can read – 12 Books to Read if You Want to Get Rich.

The Important Tax Benefits of Real Estate Investing

May 18, 2023 by Marco Santarelli

If you are planning on increasing your wealth, the best investment to deal with is real estate. Investing in real estate has some incredible tax benefits. Other benefits are an increase in property value due to appreciation and good cash flow in the form of rental income. It is easy to find the lists of these tax benefits of real estate investing, like the ability to deduct nearly every expense associated with the real estate or how to qualify to exclude from your income all or part of any capital gain from the sale of your main home.

However, it is equally easy for someone to inflate or conflate various tax benefits given by the IRS. Investors dealing in real estate get the maximum tax benefits in the name of deductions, which we'll discuss in detail. Deductions that are accounted for can be depreciation, property tax, repairs, or any other form of expenses. These breaks in taxes are helpful to a lot of people dealing with real estate as their full-time business. Let’s look at the top tax benefits of investing in real estate using hard numbers. This is the basic introduction to how tax benefits in real estate work.

The average home in the United States costs around 220,000 dollars. Yet many people don’t need a three or four-bedroom single-family home. Nor should you pay that much for an investment property. A good rule of thumb for investors is to pay no more than 70 percent of the ARV or After Repair Value of the property.

We’re going to use a property purchased for 130,000 dollars. This may be a small starter home in an average neighborhood or a full-sized home in a working-class neighborhood. The house would then be worth around 185,000 fixed up if we were going to pay cash for the repairs. You don’t want to overpay for the property.

Determine how much the property would rent for it after repairs.
Divide that by the property value.
You want a 1 percent rate of return at a minimum.
This means that if you can rent the property for 1600 dollars a month and have 300 dollars a month in expenses, your net revenue is 1300 dollars a month.
On a 130,000 dollar starter home, this is a 1 percent ROI and makes it a good deal.
If the property costs 130,000 dollars now but requires 20,000 in repairs, it probably isn’t worth it unless you’re going to sell it soon to capture the increased equity.
Don’t forget to factor in expenses like property management fees, property taxes, and insurance if you’re going to hold onto the property in addition to expenses like the mortgage.

Suppose you want to buy a 130,000 dollar house with 20 percent down. That means the down payment is 26,000 dollars. This results in a mortgage of 104,000 dollars. We used a mortgage calculator assuming a 104,000 dollar mortgage at 5 percent over 30. This results in a monthly payment of 558 dollars a month. As a real estate investor, your mortgage interest becomes tax-deductible, while payments toward the principle are not. This makes nearly all of the roughly six hundred dollar house payment a business expense you can write off.

Because you put 20 percent down on the property, there is no PMI or private mortgage insurance.

However, property insurance will be tax-deductible, too. Homeowner's insurance ranges from 1 to 2 percent a year. If we assume a 1 percent homeowner's insurance policy, the premiums are 1200 to 1300 dollars a year. Property management fees are tax-deductible business expenses. If the rent on our 130,000 investment property is 1300 dollars a month, you’ll pay roughly 130 dollars a month or 1560 dollars a year for someone else to collect the rent.

All the costs associated with property acquisition can be written off. This list includes title insurance, legal fees, real estate agent commissions, transfer taxes, back taxes, and closing costs. Don’t be afraid to hire a real estate attorney if it helps you avoid major mistakes. The cost of asking a professional about the tax benefits of investing in real estate is tax-deductible, too.

Property taxes vary wildly across the country. Some states lack a property tax, while the rate may be negligible on rural properties. The average property tax rate in the US is 1.2 percent. This translates to a $1,560 property tax bill for homeowners. Unfortunately, that’s factoring in the homestead exemption property tax investors don’t get.

Assume a $2,000 to $2,400 a year property tax bill. The property taxes you pay offset the potential income taxes you would owe if your real estate properties are held by an LLC. Or they’re treated as a business expense for you as a private investor, reducing the taxable income you’ll owe on the property. Note that you’ll still enjoy the same tax benefits of real estate investing if it is held in a private LLC as held in your name.

What Are Tax Benefits of Real Estate Investing?

Everyone pays property taxes, but how much tax you pay can be reduced by utilizing certain tax breaks available in real estate. Let's now discuss each of these tax benefits in detail and how to use them to maximize your savings.

Depreciation

What is Depreciation?

One of the greatest tax deductions real estate investors enjoy is depreciation. Like any other asset residential real estate is also an asset that breaks down over time. Depreciation is a deduction taken on materials that break down. The IRS uses depreciation to acknowledge that an asset wears down over time. It is like an allowance given for exhaustion or wears and tear of the property, including a reasonable benefit for obsolescence. Depreciation is charged in different years for residential and commercial property. For residential properties, it is calculated in 27.5 years, and for commercial, the same is 39 years.

It is an incredible benefit given by the IRS to real estate investors. Even though anything that breaks down on the property can be deducted, we all know that property values generally go up over time. Therefore, depreciation on real estate is often known as a “phantom deduction” because although we deduct the cost, the actual loss never really occurs.

How is Depreciation Calculated?

Depreciation is charged by the method named (MACRS) Modified Accelerated Cost Recovery Method. In MACRS the residential rental property and structural improvements are depreciated over 27.5 years, while appliances and other fixtures are depreciated over 15 years. Whatever is the cost of your residential property (excluding the cost of the land), it will be spread out over 27.5 years and deducted every year.

Note that you can only depreciate the building, not the land.

For simplicity’s sake, we’ll say the land is worth 30,000 dollars while the house is worth 100,000 dollars, which will be spread out over 27.5 years.

This means you would divide $100,000 by 27.5 = 3636.36. Hence, you can deduct $3636.36 every single year for the next 27.5 years on your investment property.

And that much of the profits from the property are shielded from income taxes because it is offset by the presumed losses from depreciation. This is separate from the tax-deductibility of actual repairs like replacing the roof or dead air conditioner.

If you made major improvements to the property, such as the fixer-upper scenario, those improvements are included in the depreciation. If you bought the house for 130,000 dollars and made repairs and renovations that made it worth 180,000 dollars, you have an additional 50,000 dollars of cost basis to use for depreciation purposes.

Note that minor repairs like a new hot-water heater or patched roof don’t count in depreciation.

Important Tips About Using Depreciation as a Tax Benefit in Real Estate

Depreciation will start the moment the property is officially available for occupancy.
This means depreciation doesn’t start the day you bought the property but the day you started trying to sell it or find a renter.
Conversely, it means you can claim depreciation even if the property is vacant for several months.
Depreciation ends if you sell it, exchange it or retire it from service as a rental property.
For example, you can’t claim depreciation if you move into it and make it a permanent residence.
The catch in depreciation as a tax benefit of real estate investment is that when you sell the property, that entire deducted amount may be taxed at a 25% rate, in addition to any other capital gains taxes.
However, if you didn’t make money on the sale, then IRS will not tax your old depreciation amount.

Lower Capital Gains Tax

Capital gains are the profits you make when you sell a property. One of the tax benefits of real estate investing is that there are lower taxation rates on your capital gains. The gains that investors get from selling their investment property for sale are termed capital gains which are of two types as mentioned below.

Low tax rates on capital gains are an advantage if you build your long-term investment strategy around strategically selling real estate for growth or living expenses. Generally, in all tax brackets, capital gains taxes are considered better than the equivalent income tax on your ordinary income.

Short-Term Gains: The gains that are received from investment properties that are held for less than one year are called short-term gains. Investors have to pay tax according to the bracket under which they fall. There is no special tax benefit in real estate for short-term capital gains.
Long-Term Gains: The gains that are received from investment properties that are held for more than one year are termed long-term capital gains. The tax rate is lower in the long-term capital gains because of which investors prefer the latter over the former. The long-term capital gains tax is either 0%, 15%, or 20%, depending on what income tax bracket you are in.

1031 Exchange

As a real estate investor, you can use this tax code called 1031 Exchange to sell a property and use the profit to buy a new one that is of equal or greater value. In this way, you can defer paying taxes until that next property is sold or you can opt for another 1031 Exchange. When you choose to sell your property, you are required to pay taxes for your capital gains.

With the help of section 1031 of the Internal Revenue Code, you are permitted to postpone paying taxes when you reinvest those gains in another property. IRS considers that you are exchanging your old property for another real estate property. This is one such type of swap in which there is no tax paid; it is deferred legally.

Here are some of the factors which the 1031 exchange must meet.

The property which has been replaced and the property or properties bought in its place must have the same or greater value.
The IRS requires that you identify the property you plan to buy within 45 days and you also must close on that property within 180 days.
The properties included in the transaction must be similar. A real estate property cannot be exchanged for some other type of asset, such as a real estate investment trust (REIT).
The exchanged properties should be used for any productive purpose in business such as for investment.
Any cash or property received through the transaction that is not considered like-kind property is considered boot and is subject to taxation. Therefore, you can touch the cash. You must use an intermediary who will hold onto the cash while you wait to close on the new deal. If you do want to take out some of the profit, that amount will be taxed.

No FICA Tax

The Federal Insurance Contributions Act helps in the splitting of tax between the employee and the employer, and the rate of tax is 15.3%. If you are self-employed and have no employer, you are responsible for the full 15.3%, which is known as Self-Employment Tax. Now you might be thinking what is the tax benefit here for real estate investors?

The US Government does not currently look at rental real estate as a job or self-employed business. Therefore, a rental property income is not generally taxed as “earned income” and does come under FICA. Remember, it depends on how you earn from real estate. If you own a holding company and draw a salary, you would come under FICA.

Tax Benefits From Refinancing Your Mortgage

Refinancing is also considered one of the tax benefits of real estate investment. Exchanging your old mortgage with a new one at a new interest rate is known as Refinancing your Mortgage. Refinancing provides the borrower with fresh money at lower interest rates due to which the homeowner can lower his/her monthly payment amount.

As he/she obtains the loan at a lower rate of interest and consolidates all the debts, he/she now has to pay only one loan amount, which is obtained at a lower rate of interest and is left with some cash in hand. You don’t need to pay taxes on this. You’ll need to pay taxes when you sell the property, but you can use that money right now with no tax at all. The cash in hand after refinancing is non-taxable.

How Do You Take Advantage of These Tax Breaks?

The simplest approach is to document all of your expenses from property repairs to ongoing maintenance to insurance to taxes. Track one-time expenses like the cost of listing it for rent or sale. Your accountant will total up these expenses to determine your total business expense write-off. More importantly, what you pay your attorney or accountant to manage your business is also a tax-deductible business expense. The costs of acquiring and fixing up a property occur on a case-by-case basis.

Let’s jump to the tax calculations for the second year of ownership. We’ll use conservative estimates, though you might keep costs down.

Property taxes – $2000 a year

Depreciation – $4000 a year

Mortgage interest – $6000 a year

Property management – $1560 a year

Repairs – $2000 a year

Insurance – $1300 a year

Legal and tax preparer fees – $500 a year

That totals up to $16,860 a year in expenses. We already estimated an income of $1,300 a month every month or $15,600 a year. In this case, you’d owe no income tax on the property. If you were charging $1,500 a month in rent, you’d pay a little more in property management fees but only have to pay income taxes on $2,000 a year. In reality, you’re clearing closer to $6,000 a year, because you aren’t paying for the property’s depreciation. Know that these are rough, back-of-the-envelope calculations regarding the tax benefits of real estate investing. The costs and benefits of owning a particular property should be done on a case-by-case basis.

How Can You Lower Your Tax Bill as a Real Estate Investor?

Hold the property for more than a year to reduce capital gains taxes on the property’s appreciation. This makes a fix and rents a better strategy than flipping houses. You could even buy run-down properties, fix them up, manage them for 13 months, and then sell them to another investor. Just don’t get yourself classified as a dealer instead of an investor, because the self-employment category will double your FICA taxes.

Another option is owning the property as a legal liability corporation. You can receive the profits from the LLC, but you are personally shielded from lawsuits. You have some control over when you sell the property or pay the property taxes. Run the numbers. You might want to delay paying the property tax bill until January next year to offset the profits if you had a major repair bill this year.

If you sell the property, you’ll owe capital gains taxes. A like-kind exchange under Section 1031 of the tax code allows you to defer paying these taxes. Always work with a good real estate tax advisor to handle such a rollover. Another option is selling the property to the tenant or another investor under an installment deal. It lets you write off the value of the property with each installment, though you run the risk of only owning half a house if they default.

In theory, you can reduce your tax bill by borrowing against properties you own to buy new properties rather than selling them, too. On the other hand, you don’t want to pay more for repairs, services, or financing to get a tax write-off. For example, you’re not saving money if you pay the bank an extra 1000 dollars to get a 250 dollar tax write-off.

Set up a dedicated home office that you only use for work. Then you can deduct part of your mortgage and utilities as a business expense. Get organized. For example, you should keep track of mileage and travel costs, so you can include them as business expenses on your taxes. Document what you pay to attend real estate investing seminars or software you buy to run your business.

For simplicity’s sake, set up a bank account that is only used for managing rental properties. Rent is deposited into the account, and you only pay expenses for the rental properties out of that account. Then you don’t accidentally try to write off personal home repairs. However, this approach does make it difficult to write off a home office.

Concluding Thoughts on Tax Benefits of Real Estate Investment

Real estate investing enjoys many tax benefits. It is one of the most tax-advantaged investments compared to other investments. It depends on the investors and how they utilize these investments to the best of their advantage. It requires careful planning and effort to maximize your tax deductions while remaining in compliance with the complex regulations involved. One can attain financial freedom by learning the right way to invest in the real estate industry. It is wise to hire a good CPA or tax expert who will save you more money than they cost. They will help you in plotting your tax strategy because the US tax code is quite complex and it is difficult to understand all the rules and regulations.

Tax Benefits of Real Estate: Places Where You Can Reap Maximum Benefits

Here are some of the best states in the U.S. for owning a property. This list takes into account median home values as well as state and local tax rates, including income tax rates, and property taxes as a percentage of market value or assessed tax value (whichever is applicable). If you buy a property or live there, it’s an excellent investment. We have listed each state's effective property tax rate, median home value, and calculated annual taxes on median home values —for an easier understanding of these tax rates.

The tax rates have been taken from Smartasset.com and median values have been taken from Zillow.com.

1. Alabama

Alabama has both a low tax rate and home prices that are well below the median home value in the U.S. For residential property, the assessed value is 10% of the appraised (or market) value. So, for example, a home with an appraised value of $100,000 would have an assessed value of $10,000. We have taken the median home value as an assessed value without any exemptions.

Median Home Value: $143,072
State Income Tax Rate: 2% – 5%
Avg. Effective property tax rate: 0.42%
Annual Property Taxes: $600

2. Nevada

Nevada's average effective property tax rate is just 0.69%, which is well below the national average of 1.08%. There are numerous tax districts within every Nevada county. County Assessors are required to reappraise all property at least once every five years. The assessed value is equal to 35% of that taxable value. Thus, if your County Assessor determines your home’s taxable value is $100,000, your assessed value will be $35,000. Tax rates apply to that amount. We have taken the median home value as a taxable value without any exemptions.

Median Home Value: $309,730 (Zillow)
State Income Tax Rate: 0%
Avg. Effective Property Tax Rate: 0.69%
Annual Property Taxes: $2,137

3. Florida

The state of Florida's average effective property tax rate is 0.98%, which is slightly lower than the U.S. average of 1.08%. Property tax rates are applied to the assessed value, not the appraised value. The most widely claimed exemption is the homestead exemption. Let’s say you have a home with an assessed value of $100,000. The first $25,000 would be exempted from all property taxes.

The next $25,000 (the assessed value between $25,000 and $50,000) is subject to taxes. Then, the next $25,000 (the assessed value between $50,000 and $75,000) is exempt from all taxes except school district taxes. Finally, the remaining $25,000 is also taxable. We have taken the median home value as an assessed value without any exemptions.

Median Home Value: $252,309
State Income Tax Rate: 0%
Avg. Effective Property Tax Rate: 0.98%
Annual Property Taxes: $2,472

4. Louisiana

Louisiana has the third-lowest effective property tax rate of any U.S. state. Only Alabama and Hawaii residents pay less on average than residents of Louisiana. For residential property in Louisiana, the assessed value is equal to 10% of the market value. So if your home has a market value of $100,000, your assessed value would be $10,000. It offers a homestead exemption on the first $7,500 of the value of a person’s primary residence (does not apply to city taxes). We have taken the median home value as an assessed value without any exceptions.

Median Home Value: $170,388 (Assessed Value)
State Income Tax Rate: 2% – 6%
Avg. Effective property tax rate: 0.52%
Annual Property Taxes: $886

5. Texas

The average effective property tax rate in Texas is 1.83%, well above the national average of 1.08%. A property appraisal is done annually by county appraisal districts. Tax payments are based on the current market value of a property. However, some exemptions help lower property taxes in Texas. Most popular are homestead exemptions which reduce property taxes for all homeowners by removing part of their home's value from taxation. Only a homeowner's principal residence qualifies for it. It exempts at least $25,000 (for school districts) of a property’s value from taxation. We have taken the median home value as the current market value with Homestead Exemptions of $25,000.

Median Home Value: $211,199
State Income Tax Rate: 0%
Avg. Effective Property Tax Rate: 1.83%
Homestead Exemptions: $25,000
Annual Property Taxes: $3,407

You can also click on this link to read our blog on how to be a successful real estate investor. This blog will teach you how to succeed in your first real estate investment, going with a moderate pace, learning much, and being ready to leave any enticing opportunity that comes your way.

REFERENCES

Median home values
https://www.zillow.com

Effective tax rates
https://smartasset.com

Tax advantages
https://www.investopedia.com/articles/investing/060815/how-rental-property-depreciation-works.asp
https://www.fool.com/millionacres/taxes/real-estate-tax-deductions/top-5-tax-advantages-real-estate-investing
https://www.usatoday.com/story/money/personalfinance/2017/04/16/comparing-average-property-taxes-all-50-states-and-dc/100314754

How to take advantage or maximize tax benefits
https://www.moneycrashers.com/lower-taxes-real-estate-investor
https://www.homeunion.com/how-to-claim-real-estate-taxes-and-deductions
https://smallbusiness.chron.com/calculate-value-investment-property-4122.html
https://finance.zacks.com/much-spend-investment-property-vs-potential-rental-income-10487.html

21 Best Cities to Invest in Real Estate in 2023

May 12, 2023 by Marco Santarelli

Best Places To Invest In Real Estate or Buy a Rental Property

In this article, we will discuss some of the best places to invest in real estate in 2023. Despite the fluctuations in the housing market in recent years, real estate investment continues to be an attractive asset class for investors. With the potential to earn recurrent income from rentals, real estate can be a lucrative investment opportunity. Although the current scenario of high-interest rates may give some investors pause, the right investment in the right market can still yield significant returns.

Investing in real estate can still be considered a viable option despite the current scenario of high-interest rates in 2023. Real estate remains an attractive asset class for investors due to the opportunity to earn recurrent income from rentals. Record-low mortgage rates and a scarcity of available inventory kept the US housing market strong in terms of buyer demand in the past two years. Although mortgage rates have risen, the strong housing demand is still driving prices up, albeit slowly.

The US housing market continues to be a somewhat moderate seller's real estate market, with annual price growth slowing down and inventory rising. Potential homebuyers may still face a bidding war if they are looking for a new house in the spring-buying season of 2023. As a real estate investor, it is important to crunch the numbers and determine the best cities to invest in.

During the pandemic, prospective homebuyers around the United States paid top dollar for homes, with remote employees and their desire for more lavish homes fueling the market. However, with the lack of homes for sale, many potential buyers may be unable to find affordable entry-level housing, predisposing them to transition into single-family rentals. Rental demand is expected to continue to increase in 2023 as a result.

The single-family rental market in the US remained robust as renters flocked to the suburbs in Q3 2022, according to Arbor's Q3 2022 Single-Family Rental Investment Trends Report. SFR is seen as a viable alternative for potential homebuyers who are priced out of home ownership. The report showed that SFR rent growth slowed but remained elevated, while build-to-rent (BTR) construction starts reached a new record high of 69,000 over the past year. Additionally, cap rates remained unchanged at 5.3% despite rising interest rates.

This presents a great opportunity for real estate investors looking to purchase single-family rental properties. This asset class is best positioned to grow in the coming years. The interest of investors in single-family rental homes has risen to a great extent during this pandemic. Large investors are gravitating toward it.

However, it is important to conduct thorough research and choose the best places to invest in real estate in 2023. All real estate is local, so understanding the local factors that can affect your investment is crucial. Single-family rental homes provide an affordable and flexible option to meet the needs of families and individuals in search of quality housing.

As of now, institutional investors account for only 2 percent of the 90-million unit market, according to NHRC. This is meager as compared to the US multifamily sector, where more than 50 percent of ownership is held by institutional investors. Hence, the single-family rental market remains an emerging market for both individual and institutional investors.

In conclusion, despite rising interest rates, investing in real estate can still provide a reliable source of recurrent income. The single-family rental market is particularly promising, as it continues to grow and attract more investors. It's important to do your due diligence when selecting a city to invest in, but with the right research and strategy, real estate can be a great investment opportunity in 2023. Let's take a look at some of the best places to invest in real estate in 2023.

How To Choose the Best Places To Invest In Real Estate In The World?

You may be located anywhere in the world, but the basic principles of the real estate business remain unchanged – you want to choose those places for your investment properties where the return on investment is high. To maximize the returns from your real estate investment you want to buy property in places with the following features:

High rental occupancy: Check how much of the available housing stock in an area is vacant;
High rentals relative to your mortgage repayments: The more of your mortgage you can cover from rentals, the better; and
A low tenant default rate: The last thing you want is to buy property in an area where tenants frequently miss rent payments.

Real estate investing requires in-depth research. Market timing also matters as some cities have exceptional rental income prospects, but a very tight inventory. In that scenario, it becomes very difficult to find and close a deal that fits your investment criteria. Therefore, you need to act fast and wisely.

Don't take any uninformed decision without evaluating the fundamentals of the real estate market you intend to purchase in – is it growing, stable, or declining? Are you planning for short-term capital gains or long-term buy and hold? To make it easy for you, we recommend contacting an investment counselor who can help you to invest in some of the best real estate markets in the United States.

Here Are the 21 Best Places to Invest in Real Estate in 2023

If you're considering a real estate investment in the coming year, there are a few markets worth investigating further due to anticipated price increases. We looked at data and examined trends from across the US to bring you this list of the 21 best places to invest in real estate in 2023. Here are the best places to invest in real estate and buy rental properties. They all have their own set of qualities and disadvantages, but many of them are less expensive than the national average.

1. Boise, Idaho

Boise, the capital city of Idaho, is becoming a popular destination for real estate investors for several reasons. Boise's strong job market, affordable housing, growing population, stable real estate market, and low property taxes make it an attractive destination for real estate investors. Whether you are looking to purchase a rental property or invest in real estate for capital appreciation, Boise offers a great opportunity for investors.

Here are the top reasons why Boise is considered one of the best places to invest in real estate:

Real Estate Appreciation: The real estate market in Boise, Idaho has shown strong growth over the past 10 years, with a home appreciation rate of 217.86% and an average annual rate of 12.26%, putting it in the top 10% nationally for real estate appreciation, according to NeighborhoodScout's data. Despite a lower appreciation rate of 7.62% over the last year, Boise's latest quarter showed a 3.87% appreciation rate, equivalent to an annual rate of 16.41%. However, this rate is lower compared to 80% of the other cities and towns in Idaho. It is important to note that while these are average rates for the city, individual neighborhoods within Boise can vary greatly in their investment potential.

Strong job market: Boise has a thriving economy, driven by a strong job market in industries such as technology, healthcare, and education. This growing job market attracts new residents, which drives demand for housing and increases property values.

Affordable housing: Compared to other major cities in the US, Boise offers more affordable housing options, making it an attractive option for first-time homebuyers and investors. This, in turn, can lead to steady rental income for investors and the potential for capital appreciation over time.

Growing population: Boise is experiencing steady population growth, as people are attracted to the city's high quality of life, outdoor recreational opportunities, and affordable cost of living. This growing population drives demand for housing, which can lead to increased property values.

Stable real estate market: Boise has a stable real estate market with a low rate of foreclosures and a consistent rate of home price appreciation. This makes it an attractive option for investors who are seeking stability and predictability in their investments.

Boise, ID Real Estate Trends: The median listing home price in Boise, ID was $528.9K in December 2022, trending down -2.9% year-over-year. The median listing home price per square foot was $292. Boise, ID was a seller's market in December 2022, which means that there are more people looking to buy than there are homes available.

The market had a total sales-to-total listings ratio above 0.2, which tends to favor sellers. On average, homes in Boise, ID sell after 62 days on the market. The trend for median days on market in Boise, ID has gone up since last month, and slightly up since last year. These housing market trends in Boise are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

2. Houston, Texas

Houston is one of the all-time best places to invest in real estate. This city is the home of the US oil and gas industry and offers perennial employment opportunities. Greater Houston is Texas' fifth-largest metro region, with over 7.2 million residents, and its population continues to expand at a rate nearly double that of the rest of the country. Forty-one Fortune 1000 companies are headquartered in the Houston region. Houston ranks fourth in the nation on this measure, behind Greater New York, Chicago, and Dallas-Ft. Worth. These strong macroeconomic factors continue to power the Houston housing market.

Houston, Texas has several factors that make it a strong market for real estate investment. Some of the reasons include:

Strong job market: Houston has a diverse and robust economy, with a strong energy sector, medical center, and aerospace industry, among others, which drives job growth and attracts new residents.
Affordable housing: Compared to other major cities, Houston has relatively affordable housing, which can provide investment opportunities for both rental properties and flips.
Growing population: Houston is one of the fastest-growing cities in the U.S., with a growing population and an increasing demand for housing.
Tax benefits: Texas has no state income tax, making it a more attractive location for both residents and businesses, and potentially increasing the demand for housing.
Robust real estate market: Houston has a strong real estate market with a steady history of appreciation, providing opportunities for long-term growth and stability for investors.

Houston Real Estate Trends: The median listing home price in Houston, TX was $340K in December 2022, trending up 3.1% year-over-year. The median listing home price per square foot was $174. Houston, TX was a balanced market in December 2022, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Houston, TX sell after 59 days on the market. The trend for median days on market in Houston, TX has gone up since last month, and slightly up since last year. These housing market trends in Houston are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

3. Dallas, Texas

Dallas is another good place to invest in real estate in 2023. Dallas, Texas is one of the most rapidly growing cities in the United States, and for good reason. It has a thriving economy, a growing population, and a diverse real estate market that offers opportunities for both residential and commercial investments.

Dallas is a great place to invest in real estate due to its strong job market, affordable housing, growing population, diverse real estate market, positive real estate trend, and pro-business environment. Whether you're looking to invest in residential or commercial properties, Dallas has something to offer everyone.

Here are some of the top reasons why Dallas is one of the best places to invest in real estate:

Affordable Housing: Dallas is known for its affordable housing compared to other major cities in the United States. This has made it an attractive destination for homebuyers, leading to increased demand for housing and, as a result, higher home values.
Strong Job Market: Dallas has a strong and diversified economy, which is reflected in its low unemployment rate and high job growth. Major industries in the city include technology, finance, and healthcare, which all contribute to a steady influx of new residents and businesses.
Growing Population: The population of Dallas is rapidly growing, with an estimated increase of 1.5 million people over the next 10 years. This population growth, coupled with the strong job market, will likely result in an increased demand for both residential and commercial real estate.
Diverse Real Estate Market: Dallas offers a diverse real estate market, with opportunities for investment in both residential and commercial properties. The city has a large inventory of single-family homes, townhouses, and apartments, as well as office buildings, shopping centers, and industrial properties. The Dallas real estate market offers a wide range of investment properties; you just have to find your tenants to rent out the property. Hiring a local property management company can help in finding tenants for your rental property in Dallas.
Positive Real Estate Trend: The real estate market in Dallas has been consistently positive, with a steady increase in home values and rental rates over the past few years. This trend is expected to continue, making it a great time to invest in the Dallas real estate market.
Pro-Business Environment: Dallas has a pro-business environment, which has led to the growth of many major corporations in the city. This, in turn, has resulted in increased demand for both residential and commercial real estate, as businesses and employees look for places to live and work.

Dallas Real Estate Trends: The median listing home price in Dallas TX was $424.9K in January 2023, trending up 7.6% year-over-year. The median listing home price per square foot was $237. Dallas, TX was a balanced market in January 2023, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Dallas, TX sell after 62 days on the market. The trend for median days on market in Dallas, TX has gone up since last month, and slightly up since last year. These housing market trends in Dallas are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

4. Las Vegas, Nevada

How can we miss Las Vegas on our list of best places to invest in real estate? Las Vegas has experienced several booms in its history. And it saw an incredible real estate bust during the Great Recession. Las Vegas’ recovery hasn’t made the same headlines as the 50% or greater declines in home values did a decade ago. Yet its recovery shouldn’t keep investors away. Throughout the pandemic, the Las Vegas housing market was among the hottest in the United States.

Las Vegas is a city that is known for its vibrant entertainment scene, luxury casinos, and world-class dining experiences. However, it's not just a great place to visit, but also a prime location to invest in real estate. Las Vegas is an excellent location for real estate investment, with a strong job market, high rental demand, affordable housing, a growing population, investment in infrastructure, a thriving tourist industry, and favorable tax benefits. If you are considering investing in real estate, Las Vegas is a prime location to consider.

Here are the top reasons why Las Vegas is one of the best places to invest in real estate:

High Rental Demand: With the city's strong job market and population growth, there is a high demand for rental properties. This, in turn, leads to stable rental income and a steady appreciation of property values.
Affordable Housing: Compared to other major cities in the United States, Las Vegas offers affordable housing options. Real estate prices are lower, and the cost of living is relatively low. This makes it an attractive destination for those looking to invest in real estate on a budget.
Growing Population: Las Vegas is one of the fastest-growing cities in the United States. With a growing population, there is a high demand for housing, which drives up real estate values and provides a stable investment opportunity.
Strong Job Market: Las Vegas has a robust job market, with a variety of industries contributing to its growth, including tourism, gaming, construction, and technology. As a result, the city has a strong economy and a low unemployment rate, which is beneficial for real estate investors. Las Vegas is the most populated city in the state of Nevada and the 28th most populated city in the United States. The Las Vegas Valley as a whole serves as the leading financial, commercial, and cultural center for Nevada. A diversified economy is driven by health-related, high-tech, and other commercial interests.
Investment in Infrastructure: Construction is also a significant component of the economy. The city is making a significant investment in its infrastructure, with new transportation projects, business parks, and residential developments underway. This investment in infrastructure is attracting new businesses, tourists, and residents to the area, which will only benefit real estate investors in the long run.
Tourist Destination: Las Vegas is one of the most popular tourist destinations in the world, attracting millions of visitors each year. The city's thriving tourism industry is a significant contributor to its economy and provides real estate investors with a reliable source of rental income.
Tax Benefits: Nevada is one of the few states in the United States that does not have a state income tax, making it an attractive location for real estate investors. Additionally, Nevada has favorable property tax rates, making it an attractive location to own real estate.

Las Vegas Real Estate Trends: The median listing home price in Las Vegas was $425K in January 2023, trending up 6.3% year-over-year. The median listing home price per square foot was $245. There are 52 neighborhoods in Las Vegas. The Paseos has a median listing home price of $889.9K, making it the most expensive neighborhood.

Pioneer Park is the most affordable neighborhood, with a median listing home price of $290.5K. These housing market trends in Dallas are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

5. Atlanta, Georgia

Atlanta, Georgia is a city that has experienced remarkable growth in recent years and is now considered one of the best places to invest in real estate. From its booming economy to its diverse culture, there are numerous reasons why you should consider investing in Atlanta real estate. Atlanta is Georgia’s capital and economic center. It is considered one of the 10 most productive states that contribute to the USA’s GDP annually.

Atlanta is a city that offers a lot of potential for real estate investors. From its strong economy to its growing population, there are plenty of reasons why you should consider investing in this city. With its low cost of living, diverse culture, and good returns on investment, Atlanta is one of the best places to invest in real estate in the United States.

Here are the top reasons why you should consider investing in this city.

Low Cost of Living: Compared to other major cities, Atlanta has a relatively low cost of living. This makes it an attractive location for both renters and investors. The city also has a large population of young professionals, which means that there is a high demand for affordable housing options.
Growing Population: Atlanta has a growing population, with a high number of young professionals and families moving to the city. This growing population is driving demand for housing, making it a great time to invest in the real estate market.
Diverse Culture: Atlanta is known for its diverse culture and vibrant atmosphere. The city is home to a large number of cultural events, festivals, and attractions, making it a great place to live and invest.
Thriving Economy: Atlanta has a strong and diverse economy that continues to grow. The city is home to several Fortune 500 companies and is also a hub for technology, finance, and healthcare industries. This means that there are plenty of job opportunities and high demand for housing in the area.
Strong Real Estate Market: Atlanta has a strong real estate market, with a high demand for housing and a growing population. This means that there are plenty of opportunities for real estate investors to make a profit. The city is also home to a number of affordable housing options, making it accessible to a variety of investors.
Good Returns on Investment: Atlanta has a strong track record for providing good returns on investment for real estate investors. The city's growing population and strong economy make it a safe and profitable location for real estate investments.
Accessibility: Atlanta is located in the heart of the southeast and is easily accessible by air, road, and rail. This makes it a great location for those who travel frequently or want to live in a city that is well-connected.

Atlanta Real Estate Trends: The median listing home price in Atlanta GA was $399.9K in January 2023, flat year-over-year. The median listing home price per square foot was $255. Atlanta was a balanced market in January 2023, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Atlanta, GA sell after 73 days on the market. The trend for median days on market in Atlanta, GA has gone up since last month, and slightly up since last year. These housing market trends in Atlanta are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

6. Orlando, Florida

Orlando, FL is a tourism and entertainment favorite, because of this, it remains a strong real estate investment destination. Investors have a choice of targeting the long-term residential or holiday markets with their properties. Both offer strong returns. Orlando, Florida is a highly sought-after destination for both tourists and real estate investors. With its warm weather, a bustling economy, and world-renowned attractions, Orlando offers a number of compelling reasons to invest in its real estate market.

Orlando's strong tourism industry, growing job market, affordable cost of living, thriving business community, and a growing population all make it one of the best places to invest in real estate. With a wide range of investment opportunities available, from rental properties to commercial real estate, Orlando is a market that real estate investors can't afford to ignore.

Here are some of the top reasons why Orlando is one of the best places to invest in real estate:

Growing Job Market: Orlando's job market is one of the fastest-growing in the country, with a number of high-tech industries, such as aerospace and simulation, leading the way. This growing job market is attracting a highly educated and skilled workforce, which is driving demand for both residential and commercial properties in the area.
Affordable Cost of Living: Compared to other major cities in the US, Orlando offers a relatively low cost of living, making it an attractive destination for families and retirees alike. This affordable cost of living, combined with a strong job market and growing economy, makes Orlando an ideal location for real estate investment.
Thriving Business Community: Orlando's business community is thriving, with a number of high-tech, aerospace, and simulation companies making their home in the area. This strong business community, along with a growing job market and affordable cost of living, is driving demand for both residential and commercial properties, making Orlando a great location for real estate investment.
Strong Tourism Industry: Orlando is home to some of the world's most famous theme parks, including Disney World, Universal Studios, and SeaWorld. This strong tourism industry attracts millions of visitors each year, which in turn drives demand for both short-term and long-term rental properties. This means that real estate investors can expect consistent demand for their properties, making Orlando an ideal location for rental investments.
Growing Population: Orlando's population is growing rapidly, making it one of the fastest-growing cities in the US. This growing population, combined with a strong job market, a thriving business community, and an affordable cost of living, is driving demand for both residential and commercial properties in the area, making it an ideal location for real estate investment.

Orlando Real Estate Trends: The median listing home price in Orlando FL was $362K in January 2023, trending up 9.7% year-over-year. The median listing home price per square foot was $226. The median home sold price was $350K. Orlando was a balanced market in January 2023, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Orlando, FL sell after 72 days on the market. The trend for median days on market in Orlando, FL has gone up since last month, and slightly up since last year. These housing market trends in Orlando are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

7. Tampa, Florida

Tampa, FL is also on the list of best places to invest in real estate. With a population of more than 4 million, Tampa, FL is not only an attractive metropolitan area but is also one of the most frequently visited tourist destinations. Tampa, Florida is a thriving city that has been experiencing steady growth in terms of both population and economic development.

It is one of the best places to invest in real estate, due to its growing population, strong economy, affordable cost of living, thriving tourism industry, access to the beach, investment opportunities, and favorable climate. With so many factors working in its favor, it's no wonder that Tampa is a popular destination for real estate investors.

Here are the top reasons why Tampa is one of the best places to invest in real estate.

Strong Economy: The Tampa Bay area has a robust economy, driven by industries such as technology, healthcare, and finance. This strong economy is attracting new businesses and creating jobs, which is increasing the demand for housing in the area.
Affordable Cost of Living: Compared to other cities in the U.S., Tampa has a relatively low cost of living. This makes it an attractive destination for people who are looking to relocate or invest in real estate. As a result, property values in Tampa have been steadily increasing.
Thriving Tourism Industry: Tampa is home to several popular tourist destinations, including Busch Gardens and the Florida Aquarium. This thriving tourism industry drives demand for rental properties, making it a great place for real estate investment.
Growing Population: Tampa has a rapidly growing population, which is increasing the demand for housing in the area. As more people move to the city, the need for rental properties and new homes is growing, making Tampa a great place for real estate investment.
Access to the Beach: Tampa is located on the Gulf of Mexico, and is within driving distance to several beautiful beaches, including Clearwater Beach and St. Pete Beach. This access to the beach is a major draw for both residents and tourists, making it an attractive place to invest in real estate.
Investment Opportunities: Tampa has several investment opportunities in both residential and commercial real estate. There are many properties available for purchase, including single-family homes, townhouses, and apartments. Additionally, there are also investment opportunities in commercial real estate, such as retail, office, and industrial properties.
Favorable Climate: Tampa has a subtropical climate that is warm and sunny year-round. This favorable climate attracts both residents and tourists, making it a great place for real estate investment.

Tampa Real Estate Trends: The median listing home price in Tampa FL was $395K in January 2023, trending up 8.2% year-over-year. The median listing home price per square foot was $252. The median home sold price was $380K. Tampa was a balanced market in January 2023, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Tampa, FL sell after 70 days on the market. The trend for median days on market in Tampa, FL has gone up since last month, and slightly up since last year. These housing market trends in Tampa are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

8. Spokane, Washington

There are several reasons why Spokane, WA is considered one of the best places to invest in real estate. These include its affordable Spokane housing market, strong rental demand, growing economy, and abundant outdoor recreational opportunities. Additionally, the city has a thriving arts and culture scene, a variety of educational institutions, and a low cost of living, all of which make it an attractive destination for both residents and investors alike.

Here are the top reasons why Spokane is one of the best places to invest in real estate.

Strong Housing Market: Spokane's real estate market is currently experiencing a strong seller's market, with increasing home values and low inventory.
Affordable Housing: Spokane has a lower cost of living compared to other major cities in the Pacific Northwest, making it an affordable place to invest in real estate.
Growing Economy: Spokane has a growing economy with job opportunities in healthcare, education, and manufacturing. This translates to a steady demand for housing.
Population Growth: Spokane's population has been steadily increasing over the years, making it an attractive location for real estate investments. The 2020 Census showed that Spokane city's population was 222,647, a 7.5% increase from 2010.
Pro-Business Environment: Spokane is known for its pro-business environment, with various incentives and tax breaks that encourage businesses to set up shop in the city. This creates more job opportunities and attracts more residents to the area.
Outdoor Recreation: Spokane is known for its outdoor recreation, with numerous parks, hiking trails, and water activities. This makes it a desirable place to live, work, and invest in real estate.

Spokane Real Estate Trends: The median listing home price in Spokane WA was $400K in January 2023, trending flat year-over-year. The median listing home price per square foot was $201. The median home sold price was $340K. Spokane was a balanced market in January 2023, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Spokane sell after 69 days on the market. The trend for median days on market in Spokane has gone up since last month, and slightly up since last year. These housing market trends in Spokane are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

9. Chicago, Illinois

Chicago is also on our list of the best places to invest in real estate. Chicago is the third-largest metropolitan area in the U.S., with almost three million in Chicago and another ten million in the surrounding metro area. Chicago has a large population, a diverse economy, and a stable market. Chicago's strong rental market, thriving downtown, presence of well-developed infrastructure, blue-collar areas with high rents, large population, investment opportunities in revitalizing neighborhoods, affordable housing, investment in public transportation, and thriving start-up culture make it an attractive destination for real estate investors.

Here are the top reasons why Chicago is one of the best places to invest in real estate.

Strong rental market: Over 50% of the population rents, making it a great place for real estate investors.
Thriving downtown: Chicago is a financial hub and a thriving, modern city, with much to offer in terms of diverse amenities, culture, and a strong economy.
Blue-collar areas with high rents: Chicago has solid blue-collar areas with high rents, which can provide great returns on investment for real estate investors.
Large population: Despite a recent population decline, Chicago is still a city of almost 2.7 million people, making it a significant market for real estate investment.
Presence of well-developed infrastructure: Chicago has well-developed infrastructure and socioeconomic metrics that favor long-term real estate investing.
Investment Opportunities in Revitalizing Neighborhoods: Chicago has many neighborhoods that have undergone a revitalization in recent years, making them more attractive to potential renters and real estate investors. Investing in these areas can provide significant returns, especially when done early in the development process.
Affordable Housing: Chicago has a relatively affordable housing market compared to other major metropolitan areas, making it an attractive option for investors looking to provide quality housing at reasonable prices.
Investment in Public Transportation: Chicago's public transportation system, including the L train, provides excellent connectivity to the city's neighborhoods, and with ongoing investments, it is likely to attract more renters and real estate investors in the future.
Thriving Start-Up Culture: Chicago has become a hub for start-ups, and this trend is expected to continue. This growth can drive up the demand for housing, providing more opportunities for real estate investors.

Chicago Real Estate Trends: The median listing home price in Chicago was $330K in January 2023, trending flat year-over-year. The median listing home price per square foot was $232. The median home sold price was $295K. Chicago was a buyer's market in January 2023, which means that the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Chicago sell after 73 days on the market. The trend for median days on market in Chicago has gone up since last month, and slightly down since last year. These housing market trends in Chicago are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

10. Austin, Texas

Austin, TX is also on our list of best places to invest in real estate. The Austin real estate market isn’t as big as Dallas, San Antonio, or Houston. Austin is only the fourth largest city in the state. However, the Austin housing market is sizable – it is the eleventh largest city in the U.S. as of this writing, and it is the center of a large metro area. Austin has come up as another tech hub in the last 5 to 6 years.

There are tons of high-paying tech jobs that moved to Austin in the last couple of years. As Austin is a young city by many standards, Millennials will be the largest buying force in Austin in 2023, and this trend should continue in the coming years. This is going to be more attractive for the areas being close to neighborhood amenities and close to shopping & hang-out spots. Real estate industry experts think that there is no bubble. Austin’s economy is strong and varied. Overall there is a huge scarcity of homes for sale in Austin. It just hasn’t kept up with the pace of people moving here.

Here are the top reasons why Austin is one of the best places to invest in real estate.

Booming economy: Austin's economy is booming, thanks to the presence of several major tech companies, such as Dell, IBM, and Apple, which has led to a significant increase in employment opportunities and population growth.
Growing population: Austin is one of the fastest-growing cities in the U.S. with a population growth rate of around 2.5% annually. This growth has created a high demand for housing, making it an attractive market for real estate investors.
Diverse job market: Austin's economy is not solely reliant on the tech industry. The city has a diversified economy that includes industries such as healthcare, education, government, and tourism, providing a stable job market for residents.
Strong rental market: Austin has a strong rental market, with a high percentage of renters in the population. This trend is expected to continue due to the high cost of homeownership and the influx of young professionals and college students.
Cultural hub: Austin is known for its vibrant cultural scene, with a variety of music, art, and food festivals throughout the year. This has led to a steady flow of tourists, making the city an attractive destination for short-term rental investments.
Favorable tax environment: Texas has no state income tax, making it an attractive option for investors looking to maximize their profits.
Pro-business environment: Austin has a pro-business environment, with low regulatory hurdles, making it easier for real estate investors to navigate the market.
Innovative city: Austin is known for its innovative spirit, which has led to the development of new technologies and industries. This trend is expected to continue, providing more opportunities for real estate investors to invest in emerging markets.
Strong infrastructure: Austin has a strong transportation system, including an international airport and an expanding public transportation network, making it easy to get around the city and attractive to both residents and visitors.
Quality of life: Austin consistently ranks highly in quality of life surveys due to its warm climate, access to outdoor recreation, and overall livability. This has led to a high demand for housing, making it an attractive market for real estate investors looking to provide quality housing options.

Austin Real Estate Trends: The median listing home price in Austin was $600K in January 2023, trending up 9.1% year-over-year. The median listing home price per square foot was $351. Austin was a buyer's market in January 2023, which means that the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Austin sell after 62 days on the market. The trend for median days on market in Austin has gone down since last month, and slightly down since last year. These housing market trends in Austin are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

11. Columbus, Ohio

Columbus is also on the list of the best places to invest in real estate. Its strong economy, diverse job market, affordable housing, and growing population as some of the key factors that make it an attractive destination for real estate investors. Additionally, Columbus's well-developed infrastructure, revitalizing neighborhoods, and thriving start-up culture, provide ample investment opportunities for those looking to invest in the city's real estate market.

Here are some top reasons why Columbus, Ohio is one of the best cities to invest in real estate:

Growing Population: Columbus is the fastest-growing city in the Midwest, with a population of over 900,000, and its population is expected to continue to grow in the coming years. This makes it a significant market for real estate investment.
Strong Economy: Columbus has a diverse economy and is home to several Fortune 500 companies, including Nationwide Insurance, American Electric Power, and L Brands. The city's unemployment rate is also lower than the national average, making it a stable market for real estate investment.
Affordable Housing: The cost of living in Columbus is lower than the national average, and the city has a relatively affordable housing market compared to other major cities. This makes it an attractive option for real estate investors looking to provide quality housing at reasonable prices.
Large Student Population: Columbus is home to Ohio State University, one of the largest universities in the country, with over 60,000 students. This provides a significant demand for rental properties, making it an ideal location for real estate investors looking to target the student rental market.
Strong Rental Market: With a growing population and a large student population, Columbus has a strong rental market. Over 50% of the population rents, making it an excellent place for real estate investors.
Revitalization of Neighborhoods: Columbus has several neighborhoods that have undergone a revitalization in recent years, such as the Short North, German Village, and Italian Village. These areas are now more attractive to potential renters and real estate investors, with a growing number of restaurants, shops, and entertainment venues.
Investment in Infrastructure: Columbus has made significant investments in infrastructure in recent years, such as the Smart City initiative, which aims to modernize the city's transportation system. These investments will make the city more attractive to renters and real estate investors.
Strong Job Growth: Columbus has experienced strong job growth in recent years, with many new jobs being created in the technology and healthcare industries. This bodes well for the real estate market, as more jobs mean more people looking for housing.

Columbus Real Estate Trends: The median listing home price in Columbus was $249K in January 2023, trending up 10.7% year-over-year. The median listing home price per square foot was $168. The median home sold price was $273.5K. Columbus was a buyer's market in January 2023, which means that the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Columbus sell after 46 days on the market. The trend for median days on market in Columbus has gone up since last month, and slightly up since last year. These housing market trends in Columbus are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

12. Lakeland, Florida

Lakeland, FL also enters the list of the best places to invest in real estate in 2023. Florida is one of the most popular states for real estate investing, and Lakeland is a hidden gem in the Sunshine State. Located in the heart of Central Florida, Lakeland is a rapidly growing city with a strong economy, a thriving job market, and a growing population. With affordable housing, a strong rental market, and a low cost of living, Lakeland offers real estate investors the significant potential for long-term growth and profitability.

Here are the top reasons why Lakeland, Florida is one of the best cities to invest in real estate.

Affordable Housing: Lakeland's real estate market is relatively affordable compared to other major cities in Florida, making it an attractive option for investors looking to provide quality housing at reasonable prices.
Growing Population: Lakeland's population has been growing steadily in recent years, with a projected population increase of over 7% by 2025. This growth is expected to drive demand for housing and create opportunities for real estate investors.
Strong Rental Market: With a large student population and a growing number of young professionals, Lakeland has a strong rental market. The city's low cost of living and attractive lifestyle make it a popular destination for renters.
Job Market: Lakeland has a strong job market, with major employers in industries such as healthcare, education, and manufacturing. A growing number of startups and small businesses are also contributing to the city's economic growth.
Tourism: Lakeland is a popular tourist destination, with attractions such as the historic downtown area, the Polk Museum of Art, and the Sun ‘n Fun Aerospace Expo. The city's growing tourism industry creates opportunities for short-term rental investments.
Location: Lakeland's location in Central Florida offers easy access to major cities such as Orlando and Tampa, making it an attractive destination for both residents and visitors.
Development: Lakeland has seen significant development in recent years, with new residential and commercial projects contributing to the city's growth. This development creates opportunities for real estate investors to get in on the ground floor of emerging neighborhoods and areas.

Lakeland Real Estate Trends: The median listing home price in Lakeland was $315K in January 2023, trending down 1.5% year-over-year. The median listing home price per square foot was $188. The median home sold price was $303.5K. Lakeland was a buyer's market in January 2023, which means that the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Lakeland sell after 83 days on the market. The trend for median days on market in Lakeland has gone up since last month, and slightly up since last year. These housing market trends in Lakeland are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

13. Ocala, Florida

Ocala, FL finds itself on the list of the best places to invest in real estate in 2023. Ocala, Florida is a small but growing city that offers plenty of opportunities for real estate investors. Known for its beautiful natural landscapes and historic downtown area, Ocala has become a popular destination for retirees, young families, and outdoor enthusiasts alike. In recent years, the city has experienced significant economic growth, thanks in part to its diverse industries, including healthcare, education, and manufacturing.

Here are the top reasons why Ocala is one of the best cities to invest in real estate:

Affordable Real Estate Prices: Ocala offers some of the most affordable real estate prices in Florida, making it an attractive option for investors looking to maximize their returns.
Strong Rental Market: Ocala has a strong rental market, with a growing demand for both single-family homes and multi-family properties. With low vacancy rates and high rental yields, investors can expect a steady stream of income from their investments.
Growing Population: Ocala's population has been steadily growing over the past decade, making it a prime market for real estate investors. The city's population is projected to continue growing in the coming years, driven in part by the influx of retirees and young families seeking affordable housing and high quality of life.
Thriving Healthcare Industry: Ocala is home to a number of major healthcare providers, including AdventHealth and Ocala Regional Medical Center. The city's growing healthcare industry is driving demand for medical office space and other commercial properties, creating opportunities for real estate investors.
Strong Tourism Industry: Ocala's natural beauty and outdoor recreational opportunities, including the Ocala National Forest and the Silver Springs State Park, have made it a popular destination for tourists. As a result, there is a strong demand for short-term vacation rentals, making it an attractive market for investors.
Historic Downtown Area: Ocala's historic downtown area has undergone a revitalization in recent years, attracting new businesses and residents to the area. As a result, there is a growing demand for commercial and residential properties in the downtown area, creating opportunities for real estate investors.
Access to Major Cities: Ocala is located just a short drive from major cities like Orlando and Tampa, making it an attractive option for those seeking a quieter, more affordable lifestyle within easy reach of urban amenities. As a result, there is a growing demand for housing in the area, creating opportunities for real estate investors.

Ocala Real Estate Trends: The median listing home price in Ocala was $299.9K in January 2023, trending up 12.8% year-over-year. The median listing home price per square foot was $179. The median home sold price was $279K. Ocala was a buyer's market in January 2023, which means that the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Ocala sell after 85 days on the market. The trend for median days on market in Ocala has gone up since last month, and slightly up since last year. These housing market trends in Ocala are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

14. Birmingham, Alabama

Birmingham, AL also ranks in our list of the best places to invest in rental real estate in 2023. The Birmingham AL real estate market continues to take steps in the right direction. Birmingham, Alabama is a growing city that offers many opportunities for real estate investors. Known for its rich history, cultural diversity, and economic growth, Birmingham is quickly becoming a top destination for both new residents and businesses. Overall, Birmingham offers a combination of affordability, economic growth, and cultural attractions that make it an excellent city for real estate investors looking to maximize their returns.

Here are the top reasons why Birmingham is a great city to invest in real estate:

Affordable Real Estate Prices: Birmingham offers some of the most affordable real estate prices in the country, making it an attractive option for investors looking to maximize their returns.
Strong Rental Market: Birmingham has a strong rental market, with a growing demand for both single-family homes and multi-family properties. With low vacancy rates and high rental yields, investors can expect a steady stream of income from their investments.
Economic Growth: Birmingham has experienced significant economic growth in recent years, thanks to its diverse industries, including healthcare, finance, and technology. With a thriving job market, investors can expect an increase in demand for housing and commercial properties.
Growing Population: Birmingham's population has been steadily growing over the past decade, making it a prime market for real estate investors. The city's population is projected to continue growing in the coming years, driven in part by the influx of young professionals seeking affordable housing and high quality of life.
Access to Major Markets: Birmingham is located within easy driving distance of major markets like Atlanta, Nashville, and Memphis, making it an attractive option for businesses and residents alike. This proximity to major markets also makes Birmingham an attractive option for real estate investors.
Historic Architecture: Birmingham has a rich history, and many of its historic buildings have been preserved and renovated for modern use. This creates opportunities for investors to purchase and renovate historic properties, creating unique and profitable real estate assets.
Cultural Attractions: Birmingham has a thriving arts and culture scene, with many museums, theaters, and music venues. This creates a strong demand for commercial properties in areas like downtown Birmingham, providing investors with opportunities for long-term growth.

Birmingham Real Estate Trends: The median listing home price in Birmingham was $159.7K in January 2023, trending down 3.2% year-over-year. The median listing home price per square foot was $112. The median home sold price was $192.5K. Birmingham was a buyer's market in January 2023, which means that the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12 which favors buyers. On average, homes in Birmingham sell after 60 days on the market. The trend for median days on market in Birmingham has gone up since last month, and slightly up since last year. These housing market trends in Birmingham are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

15. Durham, North Carolina

Durham, NC is also one of the best places to invest in rental real estate in 2023. The Durham housing market has made considerable improvements since the housing bubble burst. Only two years after the market crash in 2008, Durham was considered one of the few favorable locations to invest in real estate. With strong population growth and a solid economy, the rental demand in Durham, North Carolina is continuously increasing. Durham, North Carolina is a rapidly growing city that offers a strong economy, diverse population, and thriving cultural scene.

Here are the top reasons why Durham is a great city to invest in real estate:

Strong Job Market: Durham is home to major employers like Duke University, IBM, and GlaxoSmithKline, making it a hub for high-paying jobs in healthcare, technology, and pharmaceuticals. The city has a low unemployment rate and a high median household income, creating a stable base of renters and homebuyers.
Growing Population: Durham's population has grown rapidly in recent years, with a 13% increase since 2010. This growth is projected to continue, fueled by a diverse population of young professionals, families, and retirees seeking a high quality of life and access to top-tier amenities.
Affordable Real Estate Prices: Despite its strong economy and growing population, Durham offers some of the most affordable real estate prices in the region. This makes it an attractive market for investors looking to maximize their returns and capitalize on the city's potential for growth.
Top-Tier Universities: Durham is home to Duke University, one of the top universities in the country, as well as North Carolina Central University and Durham Technical Community College. These institutions drive demand for student housing and create a pool of highly educated renters and homebuyers.
Revitalized Downtown Area: Durham's downtown area has undergone a major revitalization in recent years, attracting new businesses, restaurants, and cultural institutions to the city. This has created a growing demand for residential and commercial properties in the area, making it an attractive market for investors.
Access to Major Cities: Durham has located just a short drive from major cities like Raleigh and Chapel Hill, as well as Research Triangle Park, one of the largest research and development centers in the world. This proximity to urban amenities and top-tier employers creates a strong demand for housing in the area, making it an attractive market for real estate investors.
Quality of Life: Durham offers a high quality of life, with a thriving arts and culture scene, top-rated healthcare facilities, and easy access to outdoor recreation opportunities like the Eno River State Park and the American Tobacco Trail. These amenities make Durham an attractive destination for renters and homebuyers, driving demand for real estate in the area.

Durham Real Estate Trends: The median listing home price in Durham was $405K in January 2023, trending up 1.5% year-over-year. The median listing home price per square foot was $222. The median home sold price was $355K. Durham was a balanced market in January 2023, which means the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Durham sell after 69 days on the market. The trend for median days on market in Durham has gone up since last month, and slightly up since last year. These housing market trends in Durham are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

16. Charlotte, North Carolina

Charlotte is also one of the best places to invest in rental real estate. The Charlotte metropolitan area or Metrolina has experienced rapid population and job expansion. One reason for this is the city's business-friendly environment. The homebuyers in the Charlotte area have dealt with a persistent seller’s market, which has shrunk inventory and driven up home prices. Charlotte, North Carolina is a thriving city known for its diverse economy, vibrant culture, and attractive quality of life. It is the largest city in North Carolina and the second-largest city in the Southeastern United States, making it a hub for business, education, and entertainment.

Here are the top reasons why Charlotte is a great city to invest in real estate:

Strong and Diversified Economy: Charlotte is home to several Fortune 500 companies, including Bank of America, Lowe's, and Duke Energy, making it a hub for finance, energy, and retail. The city also has a growing tech sector, with companies like Red Ventures and AvidXchange calling Charlotte home. This diverse economy creates a stable base of renters and homebuyers, making it a great market for real estate investors.
Growing Population: Charlotte is one of the fastest-growing cities in the country, with a population increase of over 15% since 2010. This growth is projected to continue, fueled by a diverse population of young professionals, families, and retirees seeking a high quality of life and access to top-tier amenities.
Affordable Real Estate Prices: Despite its strong economy and growing population, Charlotte offers some of the most affordable real estate prices in the region. This makes it an attractive market for investors looking to maximize their returns and capitalize on the city's potential for growth.
Top-Ranked Schools and Universities: Charlotte is home to several top-ranked public and private schools, as well as several universities, including the University of North Carolina at Charlotte and Queens University. These institutions drive demand for student housing and create a pool of highly educated renters and homebuyers.
Revitalized Downtown Area: Charlotte's downtown area has undergone a major revitalization in recent years, attracting new businesses, restaurants, and cultural institutions to the city. This has created a growing demand for residential and commercial properties in the area, making it an attractive market for investors.
Access to Major Cities: Charlotte is located within driving distance of several major cities, including Atlanta, GA, and Washington, D.C. It is also home to the Charlotte-Douglas International Airport, which serves as a major transportation hub for the Southeastern United States. This proximity to urban amenities and transportation creates a strong demand for housing in the area, making it an attractive market for real estate investors.
Quality of Life: Charlotte offers a high quality of life, with a thriving arts and culture scene, top-rated healthcare facilities, and access to outdoor recreation opportunities like Lake Norman and the U.S. National Whitewater Center. These amenities make Charlotte an attractive destination for renters and homebuyers, driving demand for real estate in the area.

Charlotte Real Estate Trends: The median listing home price in Charlotte was $399K in January 2023, trending up 6.4% year-over-year. The median listing home price per square foot was $217. The median home sold price was $385K. Charlotte was a balanced market in January 2023, which means the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2. On average, homes in Charlotte sell after 70 days on the market. The trend for median days on market in Charlotte has gone up since last month, and slightly up since last year. These housing market trends in Charlotte are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

17. Colorado Springs, Colorado

Colorado Springs is also on the list of the best places to invest in rental real estate. Colorado Springs, Colorado is a vibrant city located at the base of the Rocky Mountains. With a growing population and strong economy, Colorado Springs offers a variety of opportunities for real estate investors.

Here are some top reasons to consider investing in the Colorado Springs real estate market:

Strong Job Market: Colorado Springs has a diverse economy that is fueled by industries such as aerospace, defense, technology, and tourism. The city is home to major employers like Northrop Grumman, Boeing, and Lockheed Martin, as well as several military installations including Fort Carson and the United States Air Force Academy. This strong job market creates a stable base of renters and homebuyers, making it an attractive market for real estate investors.
Growing Population: Colorado Springs is one of the fastest-growing cities in the country, with a population increase of over 10% since 2010. This growth is projected to continue, driven by a diverse population of young professionals, families, and retirees seeking a high quality of life and access to outdoor recreation opportunities.
Affordable Real Estate Prices: Despite its strong economy and growing population, Colorado Springs offers relatively affordable real estate prices compared to other cities in the region. This makes it an attractive market for investors looking to maximize their returns and capitalize on the city's potential for growth.
Outdoor Recreation Opportunities: Colorado Springs is known for its stunning natural beauty and access to outdoor recreation opportunities. The city is home to attractions like the Garden of the Gods, Pikes Peak, and the Cheyenne Mountain Zoo. This natural beauty and easy access to outdoor recreation make Colorado Springs an attractive destination for renters and homebuyers, driving demand for real estate in the area.
Military Presence: Colorado Springs has a significant military presence, with several military installations located in the area. This creates a stable base of renters and homebuyers, as well as a demand for rental properties near military installations.
Strong Rental Market: Colorado Springs has a strong rental market, with a vacancy rate below the national average and a steady increase in rental prices over the past several years. This makes it an attractive market for real estate investors who are looking to generate passive income from rental properties.

Colorado Springs Real Estate Trends: The median listing home price in Colorado Springs was $439.9K in January 2023, trending up 2.9% year-over-year. The median listing home price per square foot was $212. The median home sold price was $335K. Colorado Springs was a buyer's market in January 2023, which means the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12, which favors sellers. On average, homes in Colorado Springs sell after 115 days on the market. The trend for median days on market in Colorado Springs is flat since last month, and slightly up since last year. These housing market trends in Colorado Springs are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

18. Denver, Colorado

Denver, Colorado also makes the list of the best places to invest in real estate. Rentals in this city have been gradually increasing over the years. This consistent growth has been driven by a buoyant economy creating jobs. Tourism is also high, driving strong returns in the holiday rental market. Jobs are a major reason why people move to Denver in the first place.

Denver is a bustling city that is quickly growing in popularity, attracting an influx of residents and businesses to the area. That explains why Denver is one of the top cities for in-migration, attracting people from all over the state as well as the country. With a thriving economy, stunning scenery, and a range of amenities, Denver is a great place to invest in real estate.

Here are the top reasons why:

Strong Economy: Denver is home to a strong and diverse economy, with major industries including healthcare, education, and technology. The city has consistently low unemployment rates, high median household incomes, and a growing population, making it an attractive market for real estate investors.
Growing Population: Denver has experienced significant population growth in recent years, with a 21% increase in population since 2010. This growth is expected to continue, driven by a young and educated population seeking access to top-tier amenities and a high quality of life.
Booming Real Estate Market: Denver's real estate market is booming, with home values increasing rapidly over the past few years. In fact, Denver was recently ranked as one of the hottest real estate markets in the country, making it a prime location for investors looking to capitalize on the city's growth.
Proximity to Outdoor Recreation: Denver is located at the base of the Rocky Mountains, providing easy access to world-class outdoor recreation opportunities like skiing, hiking, and camping. This proximity to nature is a major draw for residents and tourists alike, driving demand for real estate in the area.
Cultural and Entertainment Scene: Denver offers a vibrant cultural and entertainment scene, with a range of museums, galleries, music venues, and festivals throughout the year. The city is also home to a thriving food and beverage scene, with a range of top-rated restaurants and breweries.
Top-Tier Education: Denver is home to a range of top-tier universities and colleges, including the University of Denver and the University of Colorado Denver. These institutions attract a highly educated population and drive demand for student housing in the area.
Access to Major Cities: Denver is located within driving distance of other major cities like Boulder, Fort Collins, and Colorado Springs. This proximity to other urban centers creates a strong demand for housing in the area, making it an attractive market for real estate investors.

Denver Real Estate Trends: The median listing home price in Denver, CO was $565K in January 2023, trending up 6.6% year-over-year. The median listing home price per square foot was $355. The median home sold price was $460K. Denver was a buyer's market in January 2023, which means the supply of homes is greater than the demand for homes.

The market had a total sales-to-total listings ratio below 0.12, which favors buyers. On average, homes in Denver sell after 134 days on the market. The trend for median days on market in Denver has gone up since last month, and slightly up since last year. These housing market trends in Denver are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

19. Raleigh, North Carolina

Raleigh is also on the list of best places to invest in rental real estate. Raleigh, North Carolina is a city on the rise, offering a thriving economy, a strong job market, and top-tier amenities. The Raleigh metropolitan area – the city and its surrounding suburbs – account for about one and a half million people.

Raleigh offers a range of attractive qualities for real estate investors, including a strong job market, a growing population, affordable real estate prices, top-tier universities, a thriving cultural scene, access to outdoor recreation, and a growing tech industry. These factors make it a great location for real estate investors looking to capitalize on the city's potential for growth and maximize their returns.

Here are some of the top reasons to invest in the Raleigh, North Carolina real estate market:

Strong Job Market: Raleigh is home to major employers like IBM, Cisco Systems, and North Carolina State University, making it a hub for high-paying jobs in technology, education, and healthcare. The city has a low unemployment rate and a high median household income, creating a stable base of renters and homebuyers.
Growing Population: Raleigh's population has grown rapidly in recent years, with a 22% increase since 2010. This growth is projected to continue, fueled by a diverse population of young professionals, families, and retirees seeking a high quality of life and access to top-tier amenities.
Affordable Real Estate Prices: Despite its strong economy and growing population, Raleigh offers some of the most affordable real estate prices in the region. This makes it an attractive market for investors looking to maximize their returns and capitalize on the city's potential for growth.
Top-Tier Universities: Raleigh is home to North Carolina State University, one of the top universities in the country, as well as several other colleges and universities. These institutions drive demand for student housing and create a pool of highly educated renters and homebuyers.
Thriving Cultural Scene: Raleigh offers a thriving cultural scene, with a range of museums, galleries, music venues, and festivals throughout the year. The city is also home to a growing food and beverage scene, with a range of top-rated restaurants and breweries.
Access to Outdoor Recreation: Raleigh offers easy access to outdoor recreation opportunities like hiking, biking, and boating, with several parks and lakes in the area. This proximity to nature is a major draw for residents and tourists alike, driving demand for real estate in the area.
Growing Tech Industry: Raleigh is home to a thriving tech industry, with several startups and established companies in the area. This has created a strong demand for housing in the city, particularly among young professionals in the tech sector.

Raleigh Real Estate Trends: The median listing home price in Raleigh, NC was $420.2K in February 2023, trending flat year-over-year. The median listing home price per square foot was $221. The median home sold price was $393K. Raleigh was a seller's market in February 2023, which means that there are more people looking to buy than there are homes available.

The market had a total sales-to-total listings ratio above 0.2, which favors sellers. On average, homes in Raleigh sell after 63 days on the market. The trend for median days on market in Raleigh has gone down since last month, and slightly up since last year. These housing market trends in Raleigh are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

20. Phoenix, Arizona

Phoenix is also on the list of best places to invest in rental real estate. It is becoming a top destination for people living in high-cost areas like Los Angeles & Seattle. Phoenix is a rapidly growing city that has become an attractive market for real estate investors. With a strong and diverse economy, a growing population, and a range of amenities, Phoenix offers many opportunities for those looking to invest in real estate

The Phoenix real estate market offers many opportunities for investors looking to capitalize on the city's strong economy, growing population, and range of amenities. With affordable housing, high rental demand, and a range of investment opportunities, Phoenix is a market worth considering for real estate investment.

Here are the top reasons to consider investing in the Phoenix real estate market:

Strong and Diverse Economy: Phoenix has a strong and diverse economy with major industries including healthcare, education, technology, and tourism. The city has consistently low unemployment rates and a growing population, making it an attractive market for real estate investors.
Growing Population: Phoenix has experienced significant population growth in recent years, with a 12.5% increase in population since 2010. This growth is expected to continue, driven by a young and educated population seeking access to top-tier amenities and a high quality of life.
Affordable Housing Market: Compared to other major metropolitan areas, Phoenix has a relatively affordable housing market. This affordability, combined with a growing demand for housing, creates a strong market for real estate investors.
High Rental Demand: With a growing population and a large student population, Phoenix has a high demand for rental properties. This makes it an attractive market for investors looking to generate steady rental income.
Tourism: Phoenix is a popular tourist destination, with over 22 million visitors in 2019 alone. This drives strong returns in the vacation rental market, making it an attractive investment opportunity for those looking to invest in short-term rental properties.
Proximity to Outdoor Recreation: Phoenix is located in the Sonoran Desert and is surrounded by mountains, providing easy access to world-class outdoor recreation opportunities like hiking, biking, and camping. This proximity to nature is a major draw for residents and tourists alike, driving demand for real estate in the area.
Major Transportation Hub: Phoenix is a major transportation hub, with a busy international airport and major highways connecting it to other major cities in the Southwest. This makes it an attractive location for businesses and residents alike, driving demand for real estate in the area.

Phoenix Real Estate Trends: The median listing home price in Phoenix, AZ was $450K in January 2023, trending up 1.1 year-over-year. The median listing home price per square foot was $281. The median home sold price was $400K. Phoenix was a balanced market in January 2023, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2, which favors none. On average, homes in Phoenix sell after 78 days on the market. The trend for median days on market in Phoenix has gone up since last month, and slightly up since last year. These housing market trends in Phoenix are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

21. Seattle, Washington

Seattle too makes our list of one of the best places to invest in real estate for those who can afford it. Seattle offers strong economic prospects and a buoyant labor market. This means that rental occupancies are expected to remain high. The city’s population has grown consistently over the last few years with families drawn to the city’s lifestyle. Housing prices have doubled in the past five years, growing twice as fast as the national average since 2016.

Seattle’s tech landscape and real estate market are rapidly evolving. Google has upped the size of its new Seattle campus. Facebook has been on a hiring spree in the Seattle area, particularly for its virtual reality arm Oculus, which is growing fast in Microsoft’s backyard of Redmond. GeekWire reported on new HQ leases for top Seattle startups Rover and Outreach.

Other companies continue to grow and that will pick up any slack. Tech has blown up Seattle. For the past 5 years, we have seen that this market has priced out many middle-class buyers. Despite the high cost of living, Seattle, Washington, remains a hotbed for real estate investment. The city's strong economy, growing job market, and attractive location make it an ideal choice for investors looking to capitalize on the city's steady growth.

Overall, Seattle's strong economy, growing population, limited housing supply, high-quality education, attractive location, and stable market make it a top choice for real estate investors looking for a reliable and profitable investment opportunity.

Here are the top reasons why investing in Seattle's real estate market may be a wise decision:

Strong Job Market: Seattle is home to a diverse economy with thriving industries in technology, healthcare, and aerospace. Companies such as Amazon, Microsoft, and Boeing are headquartered in the area, providing a strong job market with high-paying jobs and attracting top talent from around the world.
Growing Population: Seattle's population has been steadily growing in recent years, driven by the strong job market and high quality of life. The city's population is projected to continue to grow, with estimates predicting a 16% increase in population by 2040. This growth is driving demand for housing, making it an attractive market for real estate investors.
Limited Housing Supply: Seattle's booming economy and growing population have created a housing shortage in the city, leading to a limited supply of housing. This has driven up housing prices, making it an ideal market for real estate investors looking to capitalize on the high demand for housing.
High-Quality Education: Seattle is home to several prestigious universities, including the University of Washington, which attracts a large number of students and faculty to the area. This has driven demand for student housing, making it a great opportunity for real estate investors looking to invest in rental properties.
Attractive Location: Seattle's location, nestled between Puget Sound and the Cascade Mountains, makes it a desirable location for those seeking access to outdoor recreation opportunities. The city also boasts a thriving arts and culture scene, top-rated restaurants, and a variety of entertainment options, making it an attractive destination for residents and tourists alike.
Stable Market: Despite the high cost of living, Seattle's real estate market has remained relatively stable, with steady growth in home values and rental rates. This makes it a reliable market for long-term real estate investments.

Seattle Real Estate Trends: The median listing home price in Seattle, WA was $794.1K in January 2023, trending up 5.9 year-over-year. The median listing home price per square foot was $581. The median home sold price was $765K. Seattle was a balanced market in January 2023, which means that the supply and demand of homes are about the same.

The market had a total sales-to-total listings ratio between 0.12 and 0.2, which favors none. On average, homes in Seattle sell after 75 days on the market. The trend for median days on market in Seattle has gone up since last month, and slightly up since last year. These housing market trends in Seattle are based on single-family, condo, and townhome properties listed for sale on Realtor.com. Land, multi-unit, and other property types are excluded.

Now that you know where to invest in real estate, it's time to figure out how to do it properly. One of the best investments you can make is in income-producing rental properties, but only if you know what you're doing. We can help you succeed by avoiding risk and boosting profit by researching top real estate growth markets.

Contact us if you're seeking the best affordable real estate investment opportunities in 2023. We are a provider of turnkey real estate – with properties as far south as Florida to as far north as Michigan. Here is a link to some of the top-growing real estate markets where we have investment properties for sale.

Foreign Investment in US Real Estate: A Look at the Latest Data

Foreign individuals and corporations are free to purchase residential or commercial real estate in the United States. Real estate is a global asset class, and foreign investment in the US real estate market has been an important source of capital for many years. The National Association of Realtors® (NAR) publishes an annual report on international transactions in US residential real estate to provide insights into the trends and patterns of foreign investment. Let’s take a closer look at the latest data.

Dollar Volume of Foreign Buyer Residential Purchases

According to the NAR report, the dollar volume of foreign buyer residential purchases during April 2021-March 2022 was $59 billion, which is equivalent to 2.6% of $2.3 trillion of the dollar volume of existing-home sales. This indicates that foreign investment in US real estate continues to be significant.

Number of Foreign Buyer Existing-Home Purchases

The report also reveals that 98,600 foreign buyer existing-home purchases were made during April 2021-March 2022, which represents 1.6% of 6.06 million existing-home sales. This demonstrates that foreign buyers are still active in the US real estate market. Interestingly, the report found that 57% of foreign buyers who purchased US residential property were already residing in the United States. This includes recent immigrants (less than two years at the time of the transaction) or non-immigrant visa holders who reside for more than six months in the US for professional, educational, or other reasons.

Top Foreign Buyers

The report also lists the top foreign buyers in the US residential real estate market. The top five countries are Canada (11% of foreign buyers, $5.5 billion), Mexico (8% of foreign buyers, $2.9 billion), China (6% of foreign buyers, $6.1 billion), India (5% of foreign buyers, $3.6 billion), and Brazil (3% of foreign buyers, $1.6 billion). Colombia also makes the list with 3% of foreign buyers and $1.0 billion.

Implications for the US Real Estate Market

Foreign investment has been a key driver of the US real estate market, and the latest data from the NAR report suggests that this trend is likely to continue. Foreign buyers are attracted to US real estate for a variety of reasons, such as economic and political stability, a strong rule of law, and a relatively low cost of living compared to other developed countries. These factors make the US an attractive destination for foreign investment.

Furthermore, foreign investment can provide significant benefits to the US real estate market. For example, it can boost economic growth, create jobs, and increase demand for US goods and services. However, foreign investment can also have its downsides, such as driving up home prices and reducing housing affordability for US residents.

In summary, the latest data on foreign investment in US real estate from the NAR report highlights the ongoing importance of foreign buyers in the US real estate market. While there are potential benefits and drawbacks to foreign investment, it is clear that the US real estate market remains an attractive destination for global capital.

References:

https://www.realtor.com/research/data/
https://www.zillow.com
http://www.afire.org
https://www.neighborhoodscout.com
https://www.rentcafe.com
https://en.wikipedia.org
https://www.nar.realtor/research-and-statistics/research-reports/international-transactions-in-u-s-residential-real-estate

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2. Know the Market

3. Know The Different Types Of Real Estate Investing

4. Find The Right Property For The Right Transaction

5. Be Aware Of Capitalization Rates

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1. The Richest Man in Babylon

2. The Compound Effect: Jumpstart Your Income, Your Life, Your Success

3. High Performance Habits

4. Rich Dad, Poor Dad: What the Rich Teach Their Kids About Money That the Poor and Middle Class Do Not!

5. Rich Dad's Cashflow Quadrant: Rich Dad's Guide to Financial Freedom

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11. The Millionaire Real Estate Investor

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16. Tax-Free Wealth: How to Build Massive Wealth by Permanently Lowering Your Taxes

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1. Boise, Idaho

2. Houston, Texas

3. Dallas, Texas

4. Las Vegas, Nevada

5. Atlanta, Georgia

6. Orlando, Florida

7. Tampa, Florida

8. Spokane, Washington

9. Chicago, Illinois

10. Austin, Texas

11. Columbus, Ohio

12. Lakeland, Florida

13. Ocala, Florida

14. Birmingham, Alabama

15. Durham, North Carolina

16. Charlotte, North Carolina

17. Colorado Springs, Colorado

18. Denver, Colorado

19. Raleigh, North Carolina

20. Phoenix, Arizona

21. Seattle, Washington

Foreign Investment in US Real Estate: A Look at the Latest Data

Dollar Volume of Foreign Buyer Residential Purchases

Number of Foreign Buyer Existing-Home Purchases

Top Foreign Buyers

Implications for the US Real Estate Market

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