The investor-market dynamic has shifted since the boom and bust years. Returns are no longer astronomical and scooping up discounted foreclosures isn’t as easy as it once was, but the promise of profit has far from dried up, as a new report from BiggerPockets, the world’s largest online hub for real estate investors, explained.
Considering that investor returns in real estate are largely driven by appreciation and cash flow – though not expenses, as they were too varied – the online investor hub analyzed 50 of the country’s largest markets to determine, as the report reads, “those that were most likely to produce outsized returns for residential real estate investors between 2014 and 2015.”
The top 10 cities offering the most opportunity for real estate investors in 2015 are:
- Dallas, Texas
- Denver, Colo.
- Miami, Fla.
- Houston, Texas
- Atlanta, Ga.
- Tampa, Fla.
- Detroit, Mich.
- Austin, Texas
- Las Vegas, Nev.
- Orlando, Fla.
One city that didn’t make BiggerPocket’s top 10 list was Boston, which instead found a place among the 10 worst cities to invest in, coming in at No. 9. The website calculated the city’s total returns for investors at 7.4 percent, compared to Dallas (the No. 1 rated city), which tallied a 19.5 percent return. The rating is a result of a rent to value ratio less than 5 percent and an appreciation rate less than 3 percent.
