Everything is bigger in Texas, including the rental market.
Getting into real estate is a feat in of itself, and the city where you buy is just as important as the property.
Too many real-estate rookies flock to famous destinations like California or New York (while old-schoolers profit on secret booming locations).
Let me tell you about the 5 best cities to invest in the rental market (this is where renters are headed!)
Follow the demand for rental properties all the way to the second-largest state in America, and your fortune will be second to none.
Although you may not like loud music or midnight parties, college students are the friends of rental investors.
As are low crime rates, commute times, eviction rates, and cost-burden percentages.
The most successful real estate investors have become as such due to their awareness of these things.
Flashy ads and big-time real estate moguls may convince you that the only places to invest in property are expensive high-rise condos overlooking Manhattan or a suburban flat in downtown Los Angeles.
They want to believe that they are investing in those places too, which they may be to a small degree, but the truth of the matter is rental money can only be made where there are renters to pay.
That being said, when looking to get your foot in the rental market door, you have to find locations with high percentages of households dedicated to rental units.
If you go looking to rent out a multi-bedroom home in an exclusive high-cost neighborhood, you can’t benefit from competition.
As a seller, competition is good for you. Otherwise, you’re stuck taking the offer of whoever bothered to show up.
On the other hand, if buyers are scrambling to get to you first and start their own bidding war, that’s when you make money.
So, be a friend to yourself and plant roots in a place where the rental market is hot.
As it so happens, the 5 cities I’ve discovered for you all boast a high percentage of rental units.
They also have low crime rates, entertainment options, low cost burdens, and low unemployment rates.
And, each are in close proximity to big-name colleges like Texas Christian University, Texas A&M University, and the University of Texas.
Why is that good for you?
Student housing is in constant demand. And when you buy rental properties near a well-known university, you’ve got affluent parents paying rent (AKA more money on your bottom line).
So, in order to make sure your profits are as large as possible, here are the 5 secret gold mine cities to invest in the rental market:
1. Fort Worth, TX
With a zip code that includes Texas Christian University, the median rent price is $1,442.
Not only will Fort Worth property add $17,304 to your assets, but it’s also an incredibly popular renter destination.
Just a half an hour drive from Dallas, the other principal twin city in Texas, Fort Worth is a great starting point for reaping in cash on the monthly.
2. Arlington, TX
Not far from the Dallas-Fort Worth area, Arlington has a hub of economic and social activity engineered to draw renters in.
It is also in close proximity to colleges, which will draw many tenants to the doors of your profit center.
Arlington is also home to the AT&T Stadium, field of the Dallas Cowboys.
Median rent is $1,521 in Arlington, so what are you waiting for?
3. Irving, TX
Irving has one of the lowest percentages of cost-burdened renters in the country.
Cost-burdened renters are those who pay at least a third of their income towards renting expenses.
Across the nation, about 60% of renters face this problem.
In Irving, only 33% of renters encounter cost-prohibitive rent costs.
While higher rents may be good for you as the owner, extravagant costs will do no more than drive away tenants and your future income.
Make small sacrifices on monthly rent and price as is normal in the area to ensure tenant retention and a steady flow of cash.
Irving can also say that 58% of its housing market is occupied by renters and has a staggeringly low unemployment rate at 4%.
Nestled between Fort Worth and Dallas, Irving is a relief to searching tenants and puts money in your pockets.
4. Garland, TX
With a home value increase of 11% in the past year, 2008 troubles are long behind Garland’s real estate market.
Having fostered a 5% population increase since 2018, more and more people are recognizing this diamond in the rough.
You should find your spot in the rental properties in Garland, located just west of Lake Ray Hubbard, before it’s gone.
Due to its attractiveness to renters and affordability for investors, Garland is a perfect starting point for the aspiring real estate tycoon.
5. Austin, TX
Ranked the second-best renter city in America, Austin has an unemployment rate of 3%, a variety of entertainment establishments, and a low cost-burden.
Not only is it the state capitol, but Austin is also home to the original University of Texas campus.
Its nightlife boasts blues, country, and rock scenes and, south of the city, the Formula One Circuit raceway has hosted the famous Grand Prix.
But outside of fun Friday nights, Austin can offer so much more to renters and investors alike.
The drawing factors bring tenants racing to plant roots there, and the profitable rental market creates a desirable place to make some money.
If you’re not convinced, then you can try searching for booming rental markets like these elsewhere.
But I wish you luck. “Helpful” sites run by experienced real estate investors will try to steer you away from profits like these.
They want to keep the wealth for themselves, but with these secret cities in mind, you can make money hand over fist on the back of the Lone Star amenities.
