Budget-Friendly Cities for Real Estate Investing

DAILY REAL ESTATE NEWS | MONDAY, JULY 25, 2016

Now is a good time to be a real estate investor: Median prices on existing homes are expected to climb 6 percent this year, according to a new study by realtor.com® and HomeUnion. And those looking to invest in real estate now can find plenty of options if they're willling to look past pricey big metro areas.

Read more: Survey: Real Estate Is the Best Investment

To find the best budget-friendly places to invest, they looked at single-family homes that cost $232,500 or under, which is the median price of existing homes nationwide in April, according to NAR). Their analysis also included other factors, which is why some markets with lower appreciation appear higher on the list.)

The top 10 cities for investors on a budget:

1. Jacksonville, Fla.: 3.6%
2. Tampa, Fla.: 4.4%
3. Orlando, Fla.: 3.7%
4. Chicago, Ill.: 4.2%
5. Detroit, Mich.: 3.1%
6. Las Vegas, Nev.: 4.7%
7. Cincinnati, Ohio: 3.4%
8. Phoenix, Ariz.: 4.8%
9. Cleveland, Ohio: 3.4%
10. Minneapolis, Minn.: 3.4%

HomeUnion also identified the following metros as where buyers can see the largest first-year rental returns as a landlord:

1. Cleveland, Ohio: 11.1%
2. Columbia, S.C.: 9.7%
3. Birmingham, Ala.: 8.5%
4. Pittsburgh, Pa.: 8.4%
5. Milwaukee, Wis.: 8.4%

Source: “The Best Cities to Invest in Real Estate on a Budget,” realtor.com® (July 25, 2016)