The Best Real Estate Markets to Invest in 2020

Housing prices are soaring and rent prices are struggling to keep up. Cash flow is dwindling and with a looming recession, investing in real estate is appearing riskier and riskier.
After reviewing what the “experts say”, I will quickly give you my list of favorite markets that I would invest in based on my criteria and show you how to find the perfect market for yourself based on creating your own parameters.

Tampa, Fl
Orlando, Fl
Las Vegas, NV
Lakeland, Fl
Phoenix, AZ
Fort Worth, TX
Savannah, GA

My criteria are:

Positive cash flow potential with a bare minimum of breaking even. All of these markets offer neighborhoods with properties that the current rent will cover mortgage payments, insurance, a reserve for maintenance, vacancies, and repairs. If I were to buy a new property or in a great neighborhood, the property probably wouldn’t be cash flow positive, but I like decent neighborhoods with good, working-class families in them.

Local resources. After the numbers check out, I want to like the market for personal reasons. Growing up in central Florida, I have many reasons to invest in Tampa, Orlando, and Lakeland. I have established relationships with many people in Tampa and those extra feet on the ground could always bail me out if I’m in a bind.

Reason to visit. I hate cold weather with a passion and would rather suffer through 100 degree summers in Arizona, Florida, and Texas than 20 degree winters in Pennsylvania, Maryland, and Ohio. That means if worst comes to worst and I need to visit the city to meet with my team or to evict a tenant, I want the trip to be enjoyable because I genuinely like the market. I could enjoy myself in all of these places for a week before flying back to LA.

Landlord friendly. Some states favor tenants, other favor landlords. Florida, Texas, Georgia, and Arizona are among the friendliest states for landlords. This means there are laws making it easier to evict lousy tenants and may limit or prohibit rent control.

Desirability and diversity. Why would people want to move here? This is important. Relying solely on a single industry like a steel mill to be the main source of jobs and revenue for the town is very dangerous. That would be like living in a town that only had headquarters of Sears and Kmart. Just like the rule of thumb with overall investing, diversity is important. Central Florida is great because of the tourism, the weather, the lack of state taxes, and the agriculture. Vegas is Vegas, Fort Worth is Dallas’ little brother which boasts a thriving economy, and Savannah is growing rapidly. Plus, Arizona is like the Florida equivalent for the west coast; it’s heaven’s waiting room for retirees.

With all this being said, several real estate experts pointed to the following cities for their own criteria:

Atlanta, Jacksonville, Memphis, Pittsburg, Cincinnati, Nashville, Raleigh, Huntsville (AL), Cleveland, Detroit, Indianapolis, Kansas City, Louiseville, Columbus, Des Moines, Greensboro, and numerous others.

The bottom line is this. To make a great rental investment that you will be happy with long term, create your own criteria, but always start with the numbers.
After you are satisfied with the RIO you need to receive, move on to the intangibles and tiebreakers. There could be a dozen good markets for you at first. Just narrow it down until you’re left with the 1–2 best ones.

Good luck in 2020 and if you’re looking into the central Florida market, feel free to reach out and ask any questions.

Thank you so much for watching! I'd love to hear what you think so please leave a comment and let me know what information and videos you would like to watch. :)

Best wishes!

-Brad
Dave Ramsey Preferred Coach

#financialeducation #savemoney #daveramsey

[TheMillennialsGuidetoMoney]

Correction: "I don't want to invest in a market where the tenant has power over me.

[bertanyasbig-heart]

Thanks for not taking all day to get into the meat of the topic! Bravo!

[jhoncontreras]

thank you helpfull information. i am 17 year old and this is what i want to do in the future (real estate). i am trying to get as mush information as i can. if you can upload more video about teaching how to do real estate i would love it. Thanks you!!!

[ossamashalapy]

Do you think starting a new property development in Orlando is worth during these year till next 3 or 4 years?

[Kareem]

What cities in South Florida make sense?

[davidortiz]

I love Florida but I don’t think I’ll stay here an invest here for one simple reason: Climate change. By 2060 Florida could be underwater and I don’t wanna take no risk, I’m looking forward into moving to Las Vegas

[jwm]

Invest in single family homes in Republican Cities within Republican States. ..