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Money-Making Investment: 5 of the Best States to Invest in Real Estate



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Why Invest in Real Estate?

If you’re looking for a new investment, or if you’re looking to invest for the first time, consider investing in real estate. Owning any type of real estate has the potential to earn you a steady, secondary stream of (passive) income. However, because this is an investment, investing in real estate still carries some level of risk. One of the best ways to ensure that your real estate investment will be successful is to choose a prime location.

Any real estate expert will tell you that location is the most important factor in real estate, so before you invest, it’s important to research the location you’re thinking about buying in. Some questions to ask yourself include:

  • Is the chosen area seeing any economic growth? 

  • Is the population growing? 

  • What is the average or median home price?

  • Is it likely that the property will appreciate in value?

With these factors in mind, here are some of the best states to invest in real estate.

#1: North Carolina

The cities of Charlotte, Durham, and Raleigh are all seeing significant population growth, which also comes with new job opportunities. These are two factors to look for when investing in real estate. For instance, if you purchased a residential property in the suburban areas of any of these three cities, it’s not likely that you’ll have a hard time finding someone to rent the property from you. Growing economies attract all types of individuals, from singles to those raising families.

The median price for a home in North Carolina is around $254,000. A median price means that about half of all homes fall below this price, while the other half are priced higher. $254,000 is only lower than the national median price of homes (which is around $300,000), making North Carolina a very affordable state to buy a home. Properties appreciate at a rate of about 17%, meaning that it’s likely to make a profit if you decide to sell your property later.

#2: Florida

Florida is definitely one of the best states to invest in real estate. Being both a popular vacation destination and retirement state, you can choose to either invest in a long-term rental (which is just simply known as residential real estate) or even short-term rentals, also known as vacation rentals. Florida is home to several popular amusement parks, most notably Walt Disney World, and has an endless number of beaches. It’s also home to several Fortune 500 companies and has a 14.2% population growth rate.

$306,000 is the median price for a home in Florida, making it slightly more expensive than the national median price. However, the occupancy rate in Florida is over 80%, meaning less than 20% of all homes are sitting vacant— which means that people are either buying or renting homes at a great rate in the state. Properties here also have an appreciation rate of 18%.

#3: Indiana

Indiana probably isn’t a state that many people think of when it comes to real estate investing. However, Indiana has one of the lowest median home prices in the country, at about $188,000. Properties also appreciate at a decent rate (14%), but the state only sees about a 4% population growth rate. Still, you’ll be able to see a return on your investment if you choose to invest in Indiana’s fastest growing cities, such as Lafayette. It also helps to properly market your property as available to rent, such as posting your property on a real estate listing site.

#4: Georgia

The state capital of Atlanta is a fairly fast-growing city with a population growth rate of almost 10% and a job growth rate that beats the national average. The median price for a home in Georgia is around $250,000, making it less expensive than the national median. Homes appreciate at a 17% rate, and Georgia has an occupancy rate of nearly 90%. Georgia is also home to the headquarters of Coca-Cola and Delta Airlines.

#5: Texas

Texas is the U.S.’s second largest state in both size and population. Because of its large size there’s a major city located in a climate that’s suitable for everyone, whether it’s the desert climate in El Paso, or a more humid subtropical climate in Houston. Although the entire state has a 15% population growth rate, some of the fastest-growing cities include Dallas, Austin, and San Antonio. The media price of a home in Texas is very affordable at $252,000 and the appreciation rate is close to 17%, making Texas a great place to invest in residential real estate.

With more people than ever renting instead of buying homes, investing in residential real estate is a smart move. Just remember to thoroughly research for the best locations and access all of your risks.


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