Thanks to the advent of modern technology, it is entirely possible to invest virtually anywhere in the world. And while that tremendous degree of flexibility and autonomy is definitely an advantage when it comes to maximizing profitability and building a truly diversified investment portfolio, the sheer number of potential geographic locations to choose from can be understandably overwhelming. How do you narrow down potential options? What areas are best suited for the type of investment asset you are interested in pursuing? That’s where Gauntlet Funding comes into play. Our team of trusted industry professionals has years of experience assisting successful real estate investors make informed decisions to produce sustainable returns on investment and long-term success. To that end, we have crunched the numbers for you to pinpoint some of the top-performing states from an investor’s perspective to help you home in your property search for your next investment venture.
Metrics Matter
Raw data can provide an extremely insightful overview of what areas are well-suited for investment projects. Here is a quick look at some of the key metrics we took into account when narrowing down the best states for real estate investors:
- Economic Stability: Taking a retrospective status check of a state’s overall economic performance in terms of overall revenue and growth allows investors to determine if there will be a steady stream of well-qualified tenants or homebuyers for the foreseeable future—ensuring that your property asset will not sit vacant for long. Steadily increasing employment rates and above-average median household incomes are reliable gauges to measure the general economic health of a given area.
- Home Values: A market with a relatively low financial barrier of entry is ideal for investors. Accordingly, we looked for states with median home prices between $100K and $300K—which means that a 20% down payment would range from $20K to $60K.
- Appreciation Rate: The average home price has risen steadily over the past two years, but the appreciation in certain areas of the United States has been particularly notable. Locking in a property that has a high probability of increasing substantially in value relatively quickly is a promising opportunity for savvy investors.
Best States for Real Estate Investors
- Iowa: The Midwest has been a steady performer in terms of real estate investing throughout the entire pandemic and beyond. The relative affordability of the Iowan market and comparably reasonable monthly rents translates into a more accessible housing market than can be found in other areas of the country. Combine that with a strong median household income of just over $61K and an average appreciation of 11%, and you have a viable investment locale for investors looking to grow their asset base.
- Connecticut: Although the median home value here is slightly above average at $255,555, this northeastern state compensates with a high average household income of $78,833 and an ideal annual appreciation rate of 17.3%. Due to its ideal location within commuting distance to New York City, there is sure to be a consistent base of prospective buyers or renters in search of living spaces—which is perfect for investors looking to minimize the risk of vacancy and optimize their profit margins.
- Minnesota: Looking to the northern Midwest sector of the country, the Minnesota real estate market has been extremely active in recent months and is showing no signs of slowing down any time soon. The award-winning school systems and extremely low unemployment rate are key contributing factors to the yearly appreciation rate of 13.4%. The economy is steadily growing at a sustainable rate of 2.6%, meaning that property assets in this state are primed to generate consistent profits for the foreseeable future.
A Trusted Financial Partner
When it comes to successful real estate investing, having efficient and reliable access to the capital you need to close deals quickly with flexible terms to accommodate a wide range of investment ventures is a necessity. That is exactly what you will find when you choose to partner with Gauntlet Funding. Our team of experienced professionals pride themselves in crafting innovative and effective funding solutions for even the most complex investment projects. Contact us today to learn more about how we can assist you in obtaining all of your investment goals!
