TOP 5 BEST PLACES FOR BUYING INVESTMENT PROPERTY IN 2023

Another year is coming to an end and a lot of real estate investors are wondering what are the best places for buying investment property in 2023.

It is something that has been on the mind of a lot of real estate investors who are always on the lookout for the most profitable investment opportunities. However, it’s not always that easy to find the best investment property places without putting in the work. And a lot of it has to do with keeping yourself updated with actual market conditions.

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As a real estate investor, performing due diligence is a surefire way of getting optimal returns on your investment. You need to do hours of research and analysis to help you with your projections and calculations. The good news is that you can make things easier by following Mashvisor’s blog. We regularly give you useful investment information and advice, especially on the best locations for investment property.

That being said, this article will show you which places are worth checking out for both long term and short term rental properties in 2023. More than just showing you excellent investment locations, we will also give you a few tips on how to stay ahead of the real estate investing game.

So if you’re in the market looking for the best place to buy rental property, keep reading.

Investment properties are a popular way to make money. If you’re looking to buy an investment property in the US, here are 5 of the best places for buying investment properties for long term rentals.

We selected the cities based on the following criteria:

Each market has a median property price below $1,000,000
Each market has no less than 100 active listings
Each market has at least $2,000 in monthly rental income
Each market has a cash on cash return of 2.00% or higher
Each market has a price to rent ratio of 20 and above

The following list includes 5 cities and towns that rank high on all of the criteria above, which should give you some ideas about where to start looking for your next investment property. We ranked them according to the ones with the highest cash on cash returns down to the lowest.

1. Vero Beach, FL

Median Property Price: $734,654
Average Price per Square Foot: $339
Days on Market: 94
Number of Long Term Rental Listings: 658
Monthly Long Term Rental Income: $2,592
Long Term Rental Cash on Cash Return: 4.30%
Long Term Rental Cap Rate: 4.36%
Price to Rent Ratio: 24
Walk Score: 78

Search for profitable long term rental properties in Vero Beach, FL.

2. Fountain Hills, AZ

Median Property Price: $868,372
Average Price per Square Foot: $357
Days on Market: 92
Number of Long Term Rental Listings: 122
Monthly Long Term Rental Income: $3,600
Long Term Rental Cash on Cash Return: 4.16%
Long Term Rental Cap Rate: 4.20%
Price to Rent Ratio: 20
Walk Score: 39

3. Naples, FL

Median Property Price: $992,412
Average Price per Square Foot: $529
Days on Market: 88
Number of Long Term Rental Listings: 1,660
Monthly Long Term Rental Income: $3,986
Long Term Rental Cash on Cash Return: 3.62%
Long Term Rental Cap Rate: 3.66%
Price to Rent Ratio: 21
Walk Score: 29

4. North Miami, FL

Median Property Price: $771,038
Average Price per Square Foot: $421
Days on Market: 60
Number of Long Term Rental Listings: 269
Monthly Long Term Rental Income: $3,155
Long Term Rental Cash on Cash Return: 3.43%
Long Term Rental Cap Rate: 3.47%
Price to Rent Ratio: 20
Walk Score: 52

5. Lantana, FL

Median Property Price: $903,306
Average Price per Square Foot: $439
Days on Market: 69
Number of Long Term Rental Listings: 112
Monthly Long Term Rental Income: $2,672
Long Term Rental Cash on Cash Return: 3.35%
Long Term Rental Cap Rate: 3.41%
Price to Rent Ratio: 28
Walk Score: 65

It no longer comes as a surprise that most of the places listed above are from Florida. The Sunshine State is well-known as one of America’s top long term rental markets. It is a great place to live for people from all walks of life—young professionals, couples, families, and the elderly.

However, there are other great places for long term rental property investing. If you’re looking to buy rental properties for sale to start a rental property business, a little due diligence can go a long way.