Location of an investment property might be the most important factor contributing to profitability, so annual lists of the top real estate markets are extremely popular.
This year, Forbes published BiggerPockets’ 2016 list of top 10 real estate markets. And as a Tampa Bay real estate investment group, we are pleased that Tampa ranked #5.
To formulate their top 10 list, BiggerPockets analyzed the top 50 Metropolitan Statistical Areas to find the ones most likely to produce outsized returns for residential real estate investors. Specifically, BiggerPockets analyzed gross rents as a percentage of purchase price from early 2015 to mid-2016 to determine which of the MSAs had the best investment opportunities.
#1 Dallas, Texas
Dallas takes the top spot for the second consecutive year, as the first of three Texas cities on the list. Dallas gave investors 20.7% unleveraged returns, compared to 19.5% the prior year. Notably, Dallas was also the only city in the U.S. to break the 20% barrier.
#2 Portland, Oregon
Portland was the second most profitable city for investors, producing 19.91% returns. These strong returns were primarily generated by property appreciation over the past year.
#3 Denver, Colorado
Denver saw 19.23% in unleveraged returns for investors. Perhaps most notable by BiggerPockets is that Denver is the fasted growing city in the U.S., in addition to having a social environment that is attracting new residents.
Real estate investors, therefore, should note Denver’s profile relative to property investing when trying to identify the best cities in which to own and purchase investment property: social popularity, and sustained population growth.
#4 Miami, Florida
Miami is one of the cities investors expect to be on the list, and they were not disappointed. Miami continues to be a hotspot that attracts people from all over the world, which is reflected by its 18.12% returns.
#5 Tampa, Florida
Tampa constantly ranks as one of the best places to invest in real estate, earning the fifth highest ranking this year from BiggerPockets. Tampa generated a 17.62% return for investors due to increased equity and cash flow.
To learn more about Tampa’s 2016 rankings, see these recent articles:
- Tampa Ranked #2 Among Best U.S. Cities to Own Investment Property
- Tampa Ranked #3 For U.S. House Flipping Rates in Q2 2016
- Florida’s 2nd Largest Economy Benefits Real Estate Investors
#6 Seattle, Washington
Known as one of the coolest cities in America, Seattle continued to enrich real estate investors by generating a return of 17.18%.
#7 Nashville, Tennessee
As one of the most famous cities in the United States, Nashville has plenty to offer investors, yielding returns of 16.73%, led by higher appreciation over the previous year.
#8 Atlanta, Georgia
The bustling capital city of Georgia is one of the most populous metro areas in the United States, making it a popular city for residential real estate investing with a 16.20% overall return.
#9 Houston, Texas
As the most populous city in Texas, Houston ranked well with BiggerPockets’ analysis, providing residential real estate investors with a 15.63% return.
#10 Austin, Texas
Austin is the third Texas city to make the top 10 list, producing a total investment return of 15.55%, due to above average appreciation growth.
Graystone Investment Group
Graystone Investment Group is an experienced real estate wholesaler in metro Tampa Bay, helping clients generate profits and passive income through real estate investing.
Unlike other investment groups, we find properties that we resell to investors at discount prices, while also connecting them with private financing. We also coordinate with rehab and management companies we’ve worked with for years, at no extra charge.