When deciding to invest in an income producing property, you are better off looking in a big thriving cities rather than small cities and towns.
Why? Because big cities offer many employment opportunities due to diverse industries.
Take for example: HOUSTON, TX -
Houston has a huge oil industry that employs thousands of people, the largest medical complex in the world, a huge seaport, two large airports, & NASA’s Johnson Space Center who alone employs almost a quarter of a million people. A big thriving city like Houston will always attract more and more people who need housing ( in terms of rental properties). A small city that is dependent on one or two industries is less stable because of the high risk of a collapse of one or more of those industries. The city of Detroit is a great example of a city that is dependent on the success of one or two major industries. They depend mainly on the car industry and when it collapsed in 2008, the city could not offer any other employment alternatives. Therefore thousands of people had to move elsewhere causing the demand for housing to shrink. Homeowners and investors hit a real loss.
NO DEMAND = NO PROFIT
When owning a rental property in a big thriving city, it is more likely you will experience a stable and consistent income for long period of time, hence, very low vacancy rate. Here, tenants will have consistent incomes, homeowners will have minimal expenses renovating the property, and dealing with evictions won’t be a common ordeal.
Another great reason to invest in big thriving cities is simply because they have the greatest selection of property management companies. Property Management companies are a must have when there is an incident to be faced about how the property is being run or taken care of by the tenants. In a small town, there is very little dependable management companies that will most likely leave you with a higher chance of paying money out on repairs and service costs instead of sweeping money in.
When a big city grows, your investment value and wealth grow.
Not sure how to get started on investing in places like these? Are you finding it impossible due to your circumstances. Where there is a will, there's a way. I specialize in helping clients find cash positive properties and make wise choices in their investments. If you’d like to find out how to get started, feel free to email me any questions or comments. I’ll be sure to respond!
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