Most Affordable U.S. Cities for Real Estate Investing

Being a first time real estate investor can be a tricky process and one that requires a fair amount of knowledge to succeed in. However, the improving economic climate and the growing real estate market make 2014 an excellent time to invest.

To improve your chances of finding a good deal, it’s helpful to know which areas of the U.S. are best suited for investing. Here are some of the most affordable cities for getting started in real estate.

Greater Cleveland Area

Cleveland, Akron and the surrounding area has plenty of potential because of the low median home price. At $50,000 in Cleveland and $55,600 in Akron, it’s possible to find a reasonable deal that could easily lead to a considerable pay off in a few years. A few neighborhoods in Cleveland are even as low as $40,000.

According to the New York Post, the area is experiencing a revival, where award-winning craft breweries and cool art spaces are popping up more and more. The combination of cheap homes and what could be considered a renaissance should make this area enticing to investors for some time.

Tampa/St. Petersburg

If you’re looking to purchase a property right away, you may want to consider the Tampa Bay area. When the recession hit in mid-2007, South Florida took a significant blow. In turn, the home prices in Tampa, St. Petersburg and Clearwater dropped dramatically. As the economy continues to recover, the average home prices keep on rising and many investors have already capitalized on this trend. Although some neighborhoods are on the high end in terms of median home price, many have homes for under $40,000. St. Petersburg in particular is the current hot spot for affordable investments. With plenty of amenities and a booming tourist industry, Tampa is usually a safe bet when it comes to the long-term economy.

Detroit

Although the “Motor City” has seen economic ruin like nowhere else in the United States over the past 50 years, it appears to be taking a step in the right direction from a real estate investor’s standpoint. With a median home price under $35,000 and in some areas well below that, Detroit has the lowest housing prices in the country. While it has a long way to go, this city has seen some significant improvements over the past few years and shows encouraging signs for the future.

Founder and chairman of Quicken Loans, Dan Gilbert is the multi-billionaire who has been the catalyst for much of the economic growth in Detroit. The downtown area is already revitalized and the positive growth is likely to keep expanding into surrounding neighborhoods. There has also been a new emphasis on entrepreneurial startups and technological innovations. You would definitely want to examine the neighborhood before making an investment, but the Motor City has plenty of potential.

Columbia, SC

Columbia is the state capital and home to the University of South Carolina. While an initial investment in this area is likely to exceed those that were previously mentioned, Columbia was ranked as the number eight cheapest housing market by MSN Real Estate. Thriving government and education industries mean that the likelihood of a future recession is less than many other places in America. It also has mild winters and a host of area attractions like the Riverbanks Zoo and Botanical Garden, which makes it appealing to tourists year round and should help minimize the odds of a recession even more.

 via:http://www.totalmortgage.com/blog/housing-market-2/most-affordable-u-s-cities-for-real-estate-investing/23962