Looking at the list of best passive income-producing assets, we know that real estate tops the list. The real estate market is booming, and many people are looking for investment properties.
Factors To Consider When Choosing Best States For Real Estate Investors
Population growth creates a consistent and predictable demand for housing. You want the population in the city where you buy your property to be growing.
States with consistent job growth rates tend to have higher income levels. More people in a state with a low unemployment rate can afford to pay higher rents.
It is the percentage of all housing units in the area that renters occupy. You want to choose states with high rental occupancy rates so your properties will be easy to rent out.
Typically states with rapidly rising property prices offer lower cash flow, and you make your money only on selling the property or exchanging it for a larger one using IRS section 1031.
If you do not live in the rental property, should you care about the weather? Weather is an excellent factor for a primary residence, not for investment real estate.