By Kim Olson
With the economy slowly recovering and the housing market still soft it’s a prime time to buy real estate to invest in if you’re looking to get into the market.
It might surprise you to know that some of the hottest places in the country to historically buy real estate are now also the hottest places to buy investment property. When the economy took a nosedive and the real estate bubble burst, housing suddenly became affordable again for the masses.
Individual markets vary across the nation, but we’ve sorted out some of the best places based upon the following factors:
Price to income ratio
Declining foreclosure rates in the area
Narrow price to rent ratios
A trend upward in local home values (even though downward price trends may seem optimal for investment, a gradual trend upward in local home values means that the areas economy is improving.)
If you’ve got some cash to invest, take a look at these top cities.
4 California Cities
Las Vegas, Nevada
Rochester, New York
Four cities in California topped the list of best places to invest in real estate right now. Merced, Modesto, Madera, and Stockton in the Central Valley are bargain spots, where homes can be bought on the cheap. Vallejo in the San Francisco Bay Area is also a buyer’s paradise.
If you can afford the down payment and can get the financing California is a great place to invest with home prices that are the lowest they’ve been in years. California was one state with overly inflated housing prices. Foreclosed homes have made up roughly half of sales, making it a prime destination for real estate investment, despite its financial hard times.
Other areas of the country that are good real estate investment options right now are Las Vegas, Nevada; Rochester, New York; and Pittsburgh, Pennsylvania. Specifically, these are areas where foreclosure rates have fallen and the area’s economy is recovering with the exception of Las Vegas. There’s just too many bargain priced homes in Vegas to leave it off the list.
The opportunity to flip homes for those who want to make fast money is also there if you buy a home low enough and make only minor cosmetic repairs without blowing your budget to make a profit.