Locations with the Best Property Rental Returns Revealed
If you’ve been considering making a triple net property investment, it’s likely that you’re extremely concerned with location. After all, you need to find somewhere where tenant demand is high, and ideally somewhere where this will be the case for a while. Although the cost of the property may be higher in the following locations, the greater demand will provide you with better rental fees and ultimately, long term payments. If you’re wondering where is the best location to invest in rental property at the moment, the following should definitely be considered:
Cleveland, Ohio
The average price of a property in Cleveland is $75,000. Landlords can expect to receive an 11.5% capitalization rate if they choose to invest here. This is by far the highest capitalization rate on the list, most likely due to the low cost of the property. Cleveland is one of the largest cities in the state, and the 51st largest city in the whole of the United States. It predominantly attracts working age people due to its large business district and manufacturing industries.
Cincinnati, Ohio
Also located in Ohio, Cincinnati currently has one of the fastest growing economies in the United States. The average property price here is $87,100 with the capitalization rate being 9.8%. Because of the booming economy in Cincinnati, a lot of people are moving to the city to take advantage of the available jobs. This has led to a huge number of people requiring rental properties. A number of Fortune 500 companies are also located in Cincinnati, including Macy’s, The Kroger Company and Procter and Gamble.
Columbia, South Carolina
Columbia is the state capital of South Carolina, and enjoys a diversified economy. The city is home to lots of world renowned business, with many even choosing to locate their global headquarters there. Properties in Columbia cost on average $94,400 and there’s a capitalization rate of 8.6%. The city has also gone a number of revitalization projects to make it more attractive to both residential and commercial investors. It’s a great option for investors.
Memphis, Tennessee
Memphis is the largest city in the state of Tennessee, and due to its location is a strategic business hub. It’s home to the world’s second busiest cargo airport, and is also the home of three Fortune 500 companies. The Memphis metro area is especially popular with those of working age, and property investors can expect to spend around $87,000 on a property here. The current capitalization rate is 8.5%.
Richmond, Virginia
Finally, in fifth place on our list is Richmond, Virginia. Properties here cost $121,700 on average, and although this is higher than all of the others on this list, the city still has a healthy capitalization rate of 8.2%. Richmond is the fourth most populated city in the state and is home to many law and finance companies. The downtown area has recently been revitalized making it a more attractive place for investment.
If you are considering investing in property, these five locations make the most sense.
Author: Carol Trehearn
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