Tired of watching your money gather dust in a low-yield savings account?

Itching to build a solid real estate portfolio?

You’re in luck—our guide breaks down 12 proven strategies, from generating passive income to building long-term wealth. Lesssgo!

1. Buy and Hold

Think of buy-and-hold as the tortoise in the real estate investing race. It’s not about quick flips; it’s about building long-term wealth through appreciation and rental income. Start by finding your diamond in the rough—properties with strong potential in up-and-coming neighborhoods or areas with planned development.

The best approach? Crunch the numbers. Factor in mortgage payments, property taxes, maintenance, and—if you decide not to live in the property but rent it out—expected rental income. A healthy cash flow is what you’re aiming for here.

Now comes the “hold” part. Patience is key as you watch property values rise and rental income flows in. Holding builds that all-important equity and generates passive income. Eventually, you can sell for a profit, refinance, or continue enjoying that rental income.

Buy-and-hold offers steady income, appreciation, and tax advantages. But it’s best suited to real estate investors who have bucketloads of patience and a willingness to navigate market changes (if this doesn’t sound like you, strategy number three may be better suited to you).

Learn more: rental property tax guide for new and experienced landlords.

2. Rental Property Investment

Want to generate a steady stream of passive income while building long-term wealth? It’s no big secret, but rental properties are a no-brainer in this department. From cozy single-family homes to sprawling multifamily units, the options are as diverse as your investment goals.

But being a landlord isn’t just about collecting rent checks. Nope, managing a property involves finding and screening tenants, crafting ironclad lease agreements, and navigating rental laws. Sound like a headache? This is where professional property management teams do their thing.

A reliable property manager (hey, hello, that’s us, Ziprent) handles all the nitty-gritty, from tenant screening and rent collection to maintenance and legal compliance.

And as an added bonus, they’ll ensure your property is well-maintained, your tenants are happy campers, and your investment property is generating maximum returns.

Learn more: how to buy your first rental property.

3. Fix and Flip

Love those home renovation shows and have a knack for spotting hidden potential? Fix-and-flip might be your real estate calling. This strategy remodels diamond-in-the-rough properties into market-ready gems.

It starts with finding undervalued properties—think outdated kitchens, neglected landscaping, or those “cosmetic fixer-uppers” that scare away average buyers. Next, put on your budgeting hat and estimate renovation costs. Factor in materials, labor, and unexpected surprises that always seem to pop up (hello, leaky pipes).

Now, it’s time to channel your inner Joanna Gaines. Manage the renovation process like a pro, whether you’re DIY-ing it or hiring a skilled crew. Think upgraded kitchens, spa-like bathrooms, and curb appeal that would make your neighbors jealous.

Finally, it’s showtime! Stage your masterpiece and list it at a price that reflects its newfound glory. A successful house flipping hinges on your ability to buy low, renovate strategically, and sell high.

And, unlike the buy-and-hold strategy, fix-and-flip offers short-term returns and the satisfaction of transforming a neglected property. Just beware. It’s not for the faint of heart. Fix-and-flip requires market knowledge, renovation expertise, and a keen eye for design.

4. House Hacking

Want to live rent-free and generate some extra income? Welcome to house hacking. It puts your primary residence to work.

How? By renting out a spare room, converting your basement into a cozy apartment, or even building a separate dwelling unit on your property. Suddenly, your house isn’t just a home. Oh, no, it’s a smart investment that helps you build wealth while you sleep (literally!).

House hacking offers a blend of financial benefits. Not only can you live rent-free (or significantly reduce your housing costs), but you can also generate a steady income stream to pay down your mortgage faster or reinvest in other ventures.

House hacking isn’t all rental checks and all-in-one mortgage accounts, though. It requires property management tact on your behalf—finding reliable tenants, handling maintenance, and finding a harmonious living environment. Easier said than done.

Get it right, though, and you’ll gain valuable experience, build your financial foundation, and maybe even make some new friends along the way.

Learn more: buying a rental property before a home.

5. Wholesaling

Wholesaling connects motivated sellers with eager buyers—a fast-paced strategy that involves finding distressed or undervalued properties, putting them under contract, and then assigning that contract to another buyer for a profit.

The key is to become a master deal-finder. You’ll need to build a network of potential sellers (think those facing foreclosure or needing a quick sale) and establish relationships with investors hungry for their next project.

Becoming a real estate wholesaler also requires strong market knowledge and negotiation skills. You need to accurately assess a property’s value, identify potential repairs, and negotiate win-win deals for both the seller and the end buyer.

It’s a strategy that offers the potential for quick profits with minimal financial investment. You’re facilitating a transaction and profiting from the spread between your contract price and the purchase price the buyer pays.

So, if you’re a natural networker with a knack for deal-making, wholesaling might be your path to real estate rags to riches.

6. Real Estate Investment Trusts (REITs)

Wishing you owned a slice of a skyscraper or a shopping mall? REITs (Real Estate Investment Trusts) make that dream a reality. REIT companies own and operate income-producing real estate, allowing you to invest in a diversified portfolio of properties without the hassle of being a landlord.

Here’s how it works: instead of saving yet another downpayment, you buy shares in a company that owns and manages properties like office buildings, shopping centers, apartment buildings, and even hotels. They generate income through rent and leases and then distribute a portion of those profits to shareholders as dividends.

REITs, like mutual funds, offer liquidity (meaning you can easily buy and sell shares), diversification (spreading your risk across multiple properties), and the potential for both income and appreciation.

These trusts come in different flavors, from retail and residential to healthcare and industrial. Each type focuses on a specific sector of the real estate market, allowing you to tweak your investments to meet your goals and risk tolerance.

If you’re looking for a hands-off way to invest in real estate, REITs might just be the perfect match.

7. Real Estate Investment Groups (REIGs)

Another hands-off investing opportunity? REIGs (Real Estate Investment Groups). These groups pool resources from multiple investors, allowing you to team up and tackle bigger, bolder projects than you could alone.

How does this look? You join forces with other investors, combining your financial firepower and expertise to acquire properties, share risks, and maximize returns. Suddenly, those large-scale apartment complexes or commercial development investments you couldn’t quite swing before seem within reach.

REIGs also provide access to larger and more diverse investment opportunities, reduce your individual risk, and allow you to learn from experienced investors—a win-win-win.

Learn more: out-of-state real estate investing for beginners.

8. Commercial Real Estate

Ready to play in the big leagues of real estate? Commercial properties offer the potential for high income and long-term appreciation. Yup, we’re talking about those towering office buildings, bustling retail spaces, and massive industrial warehouses.

Heads up, though, commercial requires a different skill set from residential real estate investments. Leasing agreements are more complex, tenant relationships can be more demanding, and market conditions fluctuate significantly. You’ll also have to wrap your head around zoning regulations, property taxes, capital gains, and the unique needs of commercial tenants.

Don’t let the complexities scare you away, though.

With careful planning, market research, and perhaps a bit of expert guidance, commercial real estate can be a lucrative addition to your investment strategy.

9. Real Estate Crowdfunding

Ever wished you could invest in a luxury condo or a sprawling apartment complex, but your bank account laughed in your face? We’ve got just the thing: real estate crowdfunding. This strategy allows everyday investors to pool their resources and own a piece of the action with smaller upfront costs.

Think of it like Kickstarter for real estate assets. Crowdfunding platforms connect investors with developers and projects. That way, you can browse opportunities, choose your favorites, and invest alongside others. Suddenly, those high-rise condos and trendy retail spaces are within reach.

The beauty of crowdfunding lies in its accessibility. Minimum investments are often lower than traditional real estate ventures. A low barrier to entry that allows you to diversify your investment portfolio and access exciting projects that were once reserved for the ultra-wealthy.

But before you jump on the crowdfunding bandwagon, remember the importance of due diligence. Research the platform, scrutinize the project details, and assess the risks involved. Look for experienced developers, solid financials, and projects that align with your investment goals.

Get ready to reap the rewards of investing in partnerships!

10. Land Development

Just for a moment, think beyond bricks and mortar. What’s left? Land, of course. Uh-huh, land development is where the true real estate visionaries play. It’s about converting raw, undeveloped land into thriving communities, bustling commercial centers, or even serene nature escapes.

But land development isn’t for the faint of heart. It’s a complex dance of zoning regulations, environmental assessments, meticulous planning, and intricate construction processes. You’ll need to tackle permits, approvals, and potential roadblocks with the grace of a seasoned developer.

The rewards, however, can be substantial. Successfully developing land can generate significant returns as raw land transforms into valuable real estate. Think residential subdivisions, shopping malls, industrial parks, or even eco-friendly communities.

Land development is a long-term investment that requires vision, patience, and a deep understanding of the market. But for those with an entrepreneurial spirit and a knack for transforming landscapes, it can be a rewarding path to real estate success.

11. Tax Liens and Deeds

Ever dreamt of snapping up a property for pennies on the dollar? Investing in tax liens and deeds might be the answer. You see, when property owners fail to pay their taxes, the government can place a lien on the property and, eventually, auction it off to recoup those unpaid dues.

Here’s where the opportunities come in, you savvy investor. By buying a tax lien, you essentially pay off the delinquent taxes and gain a claim on the property. The homeowner then has a set period to repay you, with interest, to clear the lien. If they fail to do so, you might be able to acquire the property through a tax deed sale.

As you can see, tax liens and deeds offer the potential for high returns, as you can acquire properties for significantly less than their market value. Plus, you can earn interest on your investment while you wait for the homeowner to repay or the property to go to auction.

But beware, tax lien investing comes with its own set of risks. Thorough research is super important. You’ll need to understand the local laws, assess the property’s condition, and evaluate potential legal challenges. It’s definitely not a game for the impulsive or uninformed.

However, if you’re a savvy investor with a high-risk tolerance and a knack for due diligence, tax liens, and deeds can be a lucrative way to expand your real estate portfolio.

12. Buy, Rehab, Rent, Refinance, Repeat (BRRRR)

Money printer go BRRRR… Ya-huh, buying properties below market value, renovating them, renting them out, refinancing to pull out equity, and repeating the process is a serious play. A cyclical approach that starts with finding those undervalued properties hiding in plain sight—the fixer-uppers, distressed sales, or off-market deals with untapped potential.

Once you’ve snagged your bargain, you’re ready to transform the property into a renter’s dream with strategic renovations, boosting its value and appeal with cosmetic upgrades, smart improvements, and a touch of design magic.

Now that your property is sparkling, rent the place out and start generating that sweet, sweet rental income. Once your property is generating a steady income stream, it’s time for the magic of refinancing. This allows you to pull out your initial investment (or even some profit!), freeing up capital to fuel your next BRRRR adventure.

With that newfound cash in hand, you’re ready to dive back into the cycle, acquiring another property and repeating the process. The more you BRRRR, the louder the money printer roars, and the faster your real estate empire expands.

So, if you’re ready to embrace the BRRRR cycle and watch your real estate dreams take flight, get ready to buy, rehab, rent, refinance, and repeat your way to financial freedom.

Learn more: should I buy a rental property?

Maximize Your Returns with Smart Management

We’ve covered a LOT of ground here. From flipping houses to building a real estate empire, the possibilities are endless. But remember, every strategy has its own flavor. Choose wisely, my friend.

Speaking of wise choices… If you really want to find success and ditch the landlord drama, Ziprent’s got your back. Our expert property managers handle the daily grind so you can focus on the big picture: making bank.

Ready to partner up? Head to our property management services page, and let’s turn your real estate goals into reality.

Forget the rollercoaster of recent years. 2024 is shaping up to be the year of opportunities for forward-thinking real estate investors. Harvard’s recently released America’s Renting Housing 2024 suggests a stabilizing market, with rents still at record highs and demand remaining strong. Another bullish signal is the FED hinting at mid-year rate cuts. ‘Bout time, right? It’s a forecast duo that’s brewed up the perfect storm: less competition, high profitability potential, and sustainable growth.

The key to success? Location, location, location. Here are the best places to buy rental properties in 2024.

Best Cities for Buying Investment Properties in 2024

Rank	City	GDP Growth %	Metro Pop Growth %	Rental Yield %	Vacancy Rate %	Median Home Price (USD)	Property Taxes by State %	Job Growth by State %
1	Austin, TX	4.3	2.1	7.6	5.0	$533,719	1.63	2.1
2	Las Vegas, NV	1.5	1.9	10.8	7.4	$407,969	0.50	3.4
3	Orlando, FL	2.4	1.5	13.0	7.5	$379,953	0.82	2.3
4	Charlotte, NC	2.5	2.4	11.0	6.9	$391,750	0.73	1.5
5	Athens, GA	3.6	1.5	14.0	7.4	$308,136	0.83	1.0
6	Houston, TX	1.8	1.4	8.3	9.2	$264,626	1.63	2.1
7	Raleigh, NC	3.4	2.4	4.7	13.3	$434,407	0.73	1.5
8	Tampa, FL	1.8	1.1	10.1	9.4	$375,241	0.82	2.3
9	Birmingham, AL	0.3	0.9	14.5	18.8	$126,949	0.39	1.7
10	San Antonio, TX	2.4	1.5	4.9	9.0	$253,762	1.63	2.1
11	Phoenix, AZ	1.4	1.3	9.7	6.6	$422,001	0.56	2.1
12	Seattle, WA	3.5	0.9	5.7	7.7	$847,419	0.88	1.3
13	Jacksonville, FL	2.0	1.1	7.2	8.0	$294,450	0.82	2.3
14	Atlanta, GA	1.4	1.4	10.3	9.2	$390,373	0.83	1.0
15	Cleveland, OH	0.1	0.4	10.2	15.4	$100,734	1.43	0.5

*See the rationale behind our rankings in the methodology section below.

1. Austin, Texas

The best place to buy rental property is…drum roll…Austin, Texas. And it’s not much of a headscratcher why. Austin’s got a buzz that won’t quit. Startups, music festivals, students—the whole city feels like it’s running on high-octane coffee. This isn’t the place to retire; it’s the place to make things happen. That relentless energy is fueling crazy-fast growth: new neighborhoods, new companies, and new opportunities for real estate investing.

Economic and Demographic Growth

Big tech companies have turned Austin into “Silicon Hills,” fueling a job market that’s the envy of Texas. But it’s not just tech: Austin has a booming healthcare sector and clean energy industry, and it still makes stuff. Like actual real stuff. Incredible.

Rental Yields

Recently, rents have cooled, with prices down 3% year-over-year. But don’t panic: those high city-center yields (7.6%) suggest long-term potential, especially with Austin’s population still growing fast. Think of this dip as an investment opportunity, not a sign of the market’s tanking.

Quality-of-Life Factors

Austin boasts great schools, top-notch healthcare, and live music on every corner—what’s not to love? Public transit’s even decent, with new express bus lines making living car-free a real possibility.

2. Las Vegas, Nevada

Las Vegas isn’t your typical city. It’s a neon oasis in the desert where opportunity and excess collide. The 24/7 energy and anything-goes attitude draw tourists and businesses alike, fueling a surprisingly robust economy and diverse workforce.

Economic and Demographic Growth

Vegas isn’t just about casinos anymore. Sure, tourism remains the main driver of the economy, but healthcare, tech, and even mining are on the rise. Big construction projects totaling more than $8 billion in 2023, the hosting of major league sports, and the recent completion of the Las Vegas Sphere mean that growth isn’t slowing down anytime soon.

Rental Yields

Traditional rental yields in Vegas are very respectable (10.8% cash-on-cash return). Even better, short-term rentals offer excellent bang for your investment buck, which makes sense, given that it’s a tourist town.

Quality-of-Life Factors

People come to Las Vegas for the live shows and nightlife. But the practical stuff matters, too, and Vegas is improving in this department. Public transit is decent, especially on the Strip. Healthcare and schools are on the up, making the city not just a place to party but to actually build a life.

3. Orlando, Florida

Orlando, Florida, isn’t just about theme parks anymore. It’s long been a dynamic city that boasts a thriving economy fueled by tourism, tech, aerospace, and world-class healthcare. Nothing’s changed. The current mix of industries, plus a rapidly growing population, makes Orlando a prime spot for rental property investment.

Economic and Demographic Growth

Tourism is a cash cow ($87.6 billion in 2022), but it’s not the only game in town. Tech, healthcare, and even aerospace are major players here. This diversity, combined with a steadily growing workforce (population is up 1.5%), makes for a stable market. Big projects like Universal’s Epic Universe mean the boom isn’t ending anytime soon.

Rental Yields

Orlando boasts one of the best bang for your investment buck, averaging 13%. While average rents are down slightly from last year ($1,960 in March 2024), this is likely a correction, not a sign of trouble.

Quality-of-Life Factors

Good schools, a solid healthcare system, and endless entertainment options mean tenants are more likely to renew leases. The strong public transportation network is a bonus, reducing car dependency and making rentals more attractive to younger renters.

4. Charlotte, North Carolina

If you think Charlotte’s just about sweet tea and NASCAR, think again—the city’s economy is pumping along nicely. Fortune 500 headquarters, a thriving tech scene, and strong manufacturing fuel consistent job growth. This, combined with a low cost of living and vibrant culture, drives explosive population growth.

Economic and Demographic Growth

Charlotte’s economy is one of the nation’s fastest-growing (a 2.5% GDP growth rate in 2022). Major investments, like Apple’s $1 billion in the region, signal continued expansion. Large investments, plus a diverse workforce, will make Charlotte an economic powerhouse for years to come.

Rental Yields

Investors know it’s about returns, and Charlotte delivers. Gross rental yields here average a very impressive 11%. Compare that to the 4-5% national average, and you see why this market is hot.

Quality-of-Life Factors

Above-average schools, two major hospital systems, diverse attractions, and a growing arts scene make this city attractive to everyone, from young professionals to families. Happy tenants mean lower vacancy rates for you.

5. Athens, Georgia

Athens is the kind of place people visit for a weekend and end up staying for a lifetime. It’s got that walkable Southern charm, a world-class music scene, and surprisingly good healthcare for a smaller city—the perfect recipe for attracting renters and making your investment thrive.

Economic and Demographic Growth

Sure, the University of Georgia is still a huge economic driver, but so are healthcare, biotech, and manufacturing. This diversity means a healthy job market—the unemployment rate is just 3.2%, lower than the national average. And it’s not just jobs. Athens is growing: its population is up 1.5% year-over-year, and expansions at local biotech firms and new manufacturing facilities mean the city’s well-positioned for the future.

Rental Yields

For investors, those lower purchase prices (median house prices landing just a touch over 300k) translate into solid yields (14%, to be exact), making Athens one of the hottest real estate markets in the country.

Quality-of-Life Factors

Athens offers a unique vibe that keeps renters happy. Stellar healthcare, a killer music scene,  and walkable neighborhoods are a huge draw. Even the public transit is decent for Georgia, with free buses making it easy to ditch the car. And let’s not forget that UGA vibe that gives the whole city a youthful energy.

Learn more: is buying a rental property worth it?

6. Houston, Texas

Houston isn’t a city for the faint of heart. It’s hot, it’s sprawling, and it’s got that Texas-sized ambition. This is a place where people come to make things happen. That relentless energy drives a booming economy and constant growth.

Economic and Demographic Growth

Houston’s no one-trick pony. Sure, it’s the energy capital of the world, but it’s home to NASA’s Johnson Space Center and a manufacturing sector that’s diversifying as we speak. This, plus steady population growth, is fueling job creation.

Rental Yields

Houston’s rental yields are seriously impressive, clocking in at 8.3%. With its strong economy and pro-business climate, Houston offers landlords a chance for healthy returns.

Quality-of-Life Factors

Houston offers a unique quality of life. It’s got well-performing universities, the world’s largest medical complex, and seriously diverse food and arts scenes. And while there’s some urban sprawl, the public transit’s improving, and the city’s investing in making neighborhoods more livable.

7. Raleigh, North Carolina

Raleigh isn’t just about the job market; it’s got a surprisingly great quality of life. Think awesome schools, tons of green space, and a vibrant arts and food scene…with a cost of living that won’t break the bank.

Economic and Demographic Growth

Raleigh is one of the fastest-growing cities in the country, and for good reason. It’s got a tech scene that rivals the West Coast, major healthcare players, and top-notch universities (thanks, Research Triangle). This mix fuels a strong job market—the population and the state’s GDP are both up.

Rental Yields

Raleigh’s rental market is HOT. The area is so competitive, renters are practically fighting over vacant apartments. The Raleigh-Cary metro area is the most competitive in the Southeast which means landlords have their pick of tenants.

Quality-of-Life Factors

Great schools, top-tier healthcare, a cool arts scene… Raleigh has the total package. Greenways and parks make it easy to enjoy the outdoors, and the public transit is decent for a mid-sized city. This quality of life is a major selling point for landlords.

8. Tampa, Florida

Tampa’s more than just beaches and sunshine. It’s one of Florida’s largest cities with a rock-solid economy built on diverse industries to boot. This mix means steady job growth, a reliable renter pool, and less risk of those boom-and-bust cycles some cities experience.

Economic and Demographic Growth

Tampa is not a tourism town (though that helps); it has major players in defense, IT, finance, healthcare, and manufacturing. Case in point: Infrastructure projects (think billions in spending), exciting new urban developments, and expansions to the airport are all examples of the moves Tampa is making economically. And the population is up 1.1% year-over-year, so that’s a bonus.

Rental Yields

Tampa’s rental yield is sitting at a healthy 10.1%, placing it above the national average. Florida as a whole outperforms national averages, and Tampa’s in-demand location makes it a top contender within the state.

Quality of Life Factors

Tampa’s no sleepy beach town. Good schools, the Tampa General Hospital one of the best in the state, and attractions galore are what keep renters happy long-term. Even the public transit is decent (for Florida!), making it easy to get around without a car.

9. Birmingham, Alabama

Birmingham, Alabama, might just be the best-kept secret in the South. It’s got big-city amenities—good schools, the best hospital in the state, even decent public transit—but with a small-town cost of living. This unique combo is a magnet for renters, and with property prices still reasonable, it’s a recipe for serious investor returns.

Economic and Demographic Growth

Birmingham’s economy is surprisingly diverse, with big players in healthcare, manufacturing, and tech. The city has been recognized for its economic growth potential, ranking third among U.S. mid-sized cities in a national survey by Business Facilities.

Rental Yields

Birmingham’s rental yields are also crushing national averages, clocking in at 14.5%. And that’s not just hype—rents are projected to jump another 12% in the next five years.

Quality-of-Life Factors

Strong schools, world-class healthcare (thanks, UAB), and a surprisingly cool arts scene make Birmingham a place where renters stick around. Even the public transit’s decent, with the new Birmingham Xpress bus routes making car-free living a real option.

10. San Antonio, Texas

Forget those Texas stereotypes—San Antonio’s got a soul all its own. It’s the home to a vibrant mix of Mexican and Texan culture. But it’s not just history—over the last few years, the city has built itself a booming healthcare sector, a growing tech scene, and some surprisingly affordable housing.

Economic and Demographic Growth

San Antonio’s economy is poppin’ off. It’s got a major military presence, a huge healthcare sector, and is becoming a tech hub—and it’s still relatively affordable with the average house price sitting around $250k. The GDP is also up, and during the pandemic, San Antonio was the fastest-growing major city in the country.

Rental Yields

San Antonio’s rental market is softening a bit, with rent prices down slightly compared to last year. This could be a good time for investors to jump in, as those lower prices paired with the city’s affordability mean potentially strong yields.

Quality-of-Life Factors

People love San Antonio for its unique vibe—think River Walk, the Alamo, and huge festivals like Fiesta. But it’s not all tourists and tacos. San Antonio has solid healthcare and an improving public transit system.

Learn more: should I buy a rental property?

11. Phoenix, Arizona

Phoenix isn’t your average Sunbelt city. It’s got that Southwestern swagger—a mix of burgeoning tech scene, year-round sunshine, and a unique desert landscape. It’s a combo that draws young professionals, outdoor enthusiasts, and anyone craving something different.

Economic and Demographic Growth

Phoenix has a diverse economy with major players in manufacturing, tech, and healthcare. Huge new developments like the Intel expansion and the electric vehicle battery facilities are bringing thousands of jobs.

Rental Yields

While rental prices have cooled slightly lately, that high occupancy rate (95.2%) suggests strong demand remains. The takeaway for investors: this market’s been hot, and while crazy growth may be slowing, long-term prospects still look good.

Quality-of-Life Factors

The real draw is the weather and outdoor lifestyle—hiking, biking, you name it. And while public transit won’t win any awards, it’s getting better, with the light rail expanding. A level of livability that makes renters stick around.

12. Seattle, Washington

Forget New York. If you want to invest in a major city that’s got better rental yield potential, you can’t go past Seattle. With a constant buzz of innovation and a booming economy, Seattle’s making a name for itself. But it’s not just about the work—vibrant art, food scenes, and stunning natural beauty make it the total package.

Economic and Demographic Growth

Seattle’s a tech powerhouse, home to giants like Amazon and Microsoft. This fuels a strong economy, attracts a young, well-educated workforce, and is behind the city’s recent population boom. That said, it’s not just tech—a major port, healthcare, and aerospace are also economic drivers.

Rental Yields

Seattle’s rental market is competitive, with high demand and rents to match (median rent is $1,950). While rental growth has cooled slightly lately, the long-term outlook remains strong. Seattle’s steady job growth and limited housing supply mean those high rents aren’t going anywhere.

Quality-of-Life Factors

Seattle has a happenin’, artsy vibe, vibrant coffee culture, and a walkable, European-inspired downtown. Plus, with mountains and forests at its doorstep, the outdoorsy lifestyle is real.

13. Jacksonville, Florida

Once a favorite destination for retirees, Jacksonville is now on the move. It’s attracting new businesses and residents at a rapid clip, and the city’s investing heavily in its future, with major downtown revitalization projects in the works. While the rental market has seen some recent cooling, this growth suggests big opportunities for investors.

Economic and Demographic Growth

Jacksonville’s diverse economy has been powering steady growth. It’s a major logistics hub and military town, and it’s attracting everything from manufacturing to healthcare. Major new development projects, particularly downtown, show confidence in future growth—investors and homeowners like to see that.

Rental Yields

Jacksonville’s rental market is a bit of a mixed bag right now. Rents have been softening recently (they’re down 7% over the past year). That said, the overall demand for housing remains strong, which bodes well for the long term.

Quality-of-Life Factors

Jacksonville is not all business—the city has top-notch hospitals (HCA Florida Memorial and Orange Park Hospitals are ranked among America’s 250 best hospitals) and a surprisingly vibrant art scene. Plus, there are beaches and tons of parks for when you need to get outdoors.

14. Atlanta, Georgia

Atlanta is constantly reinventing itself, attracting major corporations and a diverse workforce. Its blend of old-school Southern hospitality and cutting-edge ambition creates a unique vibe that draws in renters of all kinds. With new developments popping up everywhere, Atlanta’s real estate market is just as dynamic as the city itself.

Economic and Demographic Growth

Don’t sleep on Atlanta. It’s got a surprisingly diverse economy, with big players in healthcare, manufacturing, and trade. Plus, steady population growth and an uptick in job opportunities means Atlanta is attracting new businesses and residents at a rapid clip.

Rental Yields

Atlanta’s rental yields are seriously impressive, clocking in at 10.3%. What’s driving this? High demand from renters, thanks to the strong economy and a constant influx of newcomers. While rents have softened slightly recently, the overall market remains healthy, suggesting those strong yields are here to stay.

Quality-of-Life Factors

Atlanta is a city where people want to stick around. It’s got top-notch universities and a killer arts and music scene. Even the public transit’s decent, with MARTA making it easy to get around without a car. This livability isn’t just good for residents, it’s good for landlords too—happy renters are less likely to skip town.

15. Cleveland, Ohio

Cleveland may be the underdog, but it’s got that Midwestern grit. Think of a city that’s built on manufacturing and a great work ethic. It’s now home to major healthcare institutions a growing tech scene, and it hasn’t forgotten its blue-collar roots.

Economic and Demographic Growth

Cleveland’s economy has faced challenges, but the story’s not over. While population has flatlined, the city’s diverse industries are powering modest but steady growth. The city is actively investing in revitalization projects, particularly in key neighborhoods, which could further boost growth down the road.

Rental Yields

Investors, here’s the good news: Cleveland’s rental market is outperforming. Rent growth has soared to just shy of 40% since 2014, and those yields are significantly higher than the national average. Why? It’s all about affordability. Cleveland’s got some of the cheapest real estate in the country, but rents are solid.

Quality-of-Life Factors

Cleveland’s no fancy coastal city, but it’s got what matters: good schools, world-class healthcare (the Cleveland Clinic ranked number two in the world for the sixth consecutive year), and a surprisingly vibrant arts and culture scene.

Learn more: buying a rental property before your first home.

Metrics That Define the Best Rental Investment Location

Choosing the right city is key to a profitable rental property. But how does the smart money know where to buy investment property in 2024? By following the trends, of course. We’ve broken down the metrics we used to help you spot a winning market:

Rental Yield

Rental yield is all about the return on your investment. It’s expressed as a percentage and reflects how much money you make from your property each year relative to its purchase price. Let’s say you buy a $200,000 single-family home with a 10% rental yield. That means you’d bring in $20,000 annually in rent (before expenses). High rental yields mean more cash flow and a better cushion to cover expected and unexpected costs, making it a key factor for profitability.

Job Growth

Cities with booming job markets are magnets for new residents. It translates to a higher demand for housing, which benefits rental property investors in two ways. First, it reduces the risk of your property sitting vacant—you’re more likely to find qualified tenants quickly. Second, a strong job market often leads to rising wages, allowing you to potentially charge higher rents and boost your returns.

GDP Growth

Gross Domestic Product (GDP) measures the economic output of a local area. Strong GDP growth indicates a thriving business environment where people have money to spend, including on rent. Areas with expanding economies tend to see property values appreciate over time, which is great news for investors looking to build wealth through appreciation over both the short and long-term.

Population Growth

A growing population creates a natural demand for housing. An uptick translates to lower vacancy rates (more on that later), and the potential for rent increases as more people compete for a limited number of available rentals. Cities experiencing steady population growth are prime targets for rental property investors.

Vacancy Rates

Vacancy rate is the percentage of rental units sitting empty. High vacancy rates signal a weak rental market. Cities with consistently low vacancy rates are typically landlord-friendly, offering more stability and predictability for your investment.

Median Home Price

Median home price tells you the typical cost homebuyers are shelling out for a property in a specific area. While sky-high prices might suggest great potential returns down the road, they can also make it difficult to enter the market and return lower rental yields, especially during periods of high-interest rates. The best investment locations offer a balance—affordability for buying in today’s housing market and the potential for home values to appreciate over time.

Property Taxes

Property taxes are a major ongoing expense for landlords. High tax rates can significantly eat into your rental income, making even a strong rental market with high yields less attractive. Considering property taxes helps you identify locations where your investment can generate a healthy return after factoring in all the costs.

Learn more: how to buy your first rental property.

Our Methodology for Selecting the Best Real Estate Markets

We’re not just picking cities we like—there’s a method to our madness. Here’s why we ranked our list of top rental markets in the order we did:

Tools and Models

We crunched the numbers to find patterns in the data. This involved:

• Metrics like median home prices and vacancy rates were normalized so there was comparability across different scales. For other metrics, such as vacancy rates and property taxes, we inverted the values to align them positively with investment potential.
• We assigned weights to each metric based on its perceived impact on rental investment potential, allowing us to quantify the attractiveness of each market.

Rationale Behind Metric Weighting

Not all stats are created equal. Here’s how we figured out which ones would make the biggest impact on your investment:

• Rental yield shows the profitability of rental investments. Weight: 20%
• Job growth signifies economic opportunity and stability. Weight: 20%
• GDP growth indicates economic health. Weight: 15%
• Metropolitan area population growth reflects population trends. Weight: 15%
• Vacancy rate represents the percentage of unoccupied rentals. Weight: 10%
• Median home price affects investment entry cost. Weight: 10%
• Property taxes affect ongoing investment costs. Weight: 10%

Data Sources

Our analysis is grounded in data from the following sources:

• Gross rental yield was taken from Numbeo.
• Job growth figures were pulled from the US Bureau of Labor Statistics.
• GDP Growth was extracted from the American Growth Project report by the Kenan Institute.
• Metro population growth was sourced from MacroTrends.
• Vacancy rates were compiled from SmartAsset and Realtor.
• Median home prices were gathered from Zillow.
• And property taxes by state were obtained from WalletHub.

Learn more: tips to buying rental property out of state.

Your Path to Successful Rental Property Investment in 2024

And once you’ve landed a data-backed investment? Who’s going to handle all the tediousness of running a rental property?

Ziprent’s got your back. Our expert team doesn’t just manage properties; we maximize returns. From finding top-tier tenants to handling any curveball maintenance throws your way, we turn your data-driven decision into a seriously profitable asset.

Ready to see those returns roll in? Jump over to your rental property management services, and let Ziprent maximize your return on investment.

Investing in rental properties and real estate isn’t just a question of whether or not you can turn a profit immediately. It’s also about how much profit you can make in the long term. Just because a region or neighborhood has high rent, doesn’t mean investing in a rental property in that neighborhood is a good idea. 

Also, just because real estate is valuable and you can potentially turn a high profit, doesn’t mean overpaying for the property is a good idea. You don’t want to bid against people with deeper pockets who don’t have to worry about taking a loss or plan to make it their primary home. You also don’t want to bid against yourself. The best way to ensure you’re paying a reasonable price on a rental property is to know how to calculate that value. Here is one way to do it: 

What to know

• Gross rental income: This is the total amount of rent collected without adjusting for any costs or losses. 
• Adjusted gross rental income: This is the total amount of income collected from rent minus the losses from times the property sat vacant and waiting for a new tenant. 

How to calculate 

Calculating gross and adjusted rental income isn’t too complex and anyone can do it. Calculating gross income is just adding up all the money you collect from various fees. These fees include rent as well as any other miscellaneous charges like parking and pet rent. This also includes any late fees if you collect any. This does not include any refundable security deposits paid by the tenants. 

Calculating the adjusted gross rental income is a little more complex but still very simple. What you are calculating is an allowance for the expected amount of days the rental unit is left vacant annually. The way to calculate this is to find out how much rent is per day based on the annual total along with any other regular fees like pent rent and parking fees.

Let’s just say rent is $2,000 a month and there are no other fees. That means the total possible amount to be collected would be $24,000 annually. Let’s say there is a 5% expected vacancy rate. This means you can expect the rental unit to be vacant 18 days out of the year. At full vacancy, the property would be earning $65.75 per day. Multiply that by 18 and subtract it from $24,000 and you will arrive at an adjusted gross rental income of $22,817.  

When calculating adjusted gross rental income, 5% is just a good starting point. You’ll want to use real data based on the property history or comparable regional data to get a better picture of what to expect. 

The different methods

• The Income/cap rate method: This is used to value the property based on the net operating income and the cap rate. To calculate the net operating income, subtract all of the expenses from the adjusted rental income. In order to calculate the cap rate, calculate by dividing the net operating income by the purchase price. When determining if the property is worth investing in you’ll want to use the 50% rule. This means you want the operating costs to be no more than 50% of the adjusted gross rental income.
• Gross rent multiplier: This is a very simple calculation you can use as a starting point. The basic idea is that the more rent you can collect from a property, the more valuable it is. While this won’t account for the actual costs of operating a rental property or any of the unforeseen risks, it will give you a ballpark figure of how much a property is worth. The way to calculate this is to divide the price of the property by the gross rental income. This will tell you how many years it’ll take to collect income that is the same value as the property. 
• Sales comparison approach: This is a way of looking at a property and calculating the value based on what similar properties have sold for recently in the same area. This means you are using the characteristics of the property and comparing them to other properties in the area with similar characteristics and what they sold for. This method may not tell you if a property is a wise investment, but it can give you a jumping-off point of what the right price would be. 

Using them all

There’s no one right way to assess the value of a property. At the end of the day, it depends on who you are bidding against and how the local economy does over the long term, but in order to protect yourself from bad investments, it is wise to use every data point available to you.

Curb appeal isn’t just important for homeowners who want to make their houses look inviting to guests. It’s also important for landlords who want to attract more desirable tenants. The likelihood of attracting a higher income and long-term tenant increases with the more effort a landlord makes when it comes to the appearance of the home. 

This means you don’t want dying plants or a baron dirt yard. Managing a yard can be expensive and time-consuming so you want to make sure you pick plants that can survive year-round and especially through harsh winters. Here are some plants that can survive winter: 

Hellebore

With about 20 different species in the Genus Helleborus, they are one of the more common and colorful evergreen perennials. Their flowers grow in a variety of colors like pink, white, and purple. They are also called Lenten roses due to the fact they often bloom around the time of Lent in mid to late winter. 

Blue Holly

Nothing quite like a Blue Holly plant to get you in the holiday mood. The shrub has shiny-blue leaves and colorful red berries that will provide your yard with bright colors and textures during the winter months. In order to get berries to grow, you’ll need to have both male and female plants so they can cross-pollinate

Daphne

The Daphne shrub can add vibrant colors to your yard. They come in lavender or pink and give off a pleasurable scent in the late winter and early spring depending on where you live. 

Winter Aconite

When it comes to trusting plants to survive the winter, you won’t find a better bet than one with “winter” in its name. They need to be planted in the fall and rodents don’t touch them which makes them a great alternative to the tulip. If you live in an area where it snows, the bright-yellow flowers will actually poke up through the snow. 

Red Twig Dogwood

Nothing can bring color to your yard during the winter quite like the Red Twig Dogwood. The branches are a bright red that really stands out when you place them near evergreens and especially when it snows.

Depending on your ability to control the climate of your home, not much changes from summer to winter indoors. While temperature can be controlled year-round, the amount of sunlight your home receives depends on the time of the year and the position of the sun. Some plants will struggle in the winter while others will thrive. Here is a list of indoor plants that do best in low light and winter conditions: 

Jade Plant – Crassula

The Jade plant can tolerate both warm and colder conditions. This means that if you leave home for a while and the heat is off, the plant will do just fine. It also does well in low-light conditions which is great for the limited amount of sunlight during the winter months. If you care for the plan properly, it’ll last through the spring and the summer and be ready for you again next winter. 

Succulents

Succulents can survive almost anything. They can handle most claimants and poor caretakers. They take some serious effort to kill and as long as you give them some direct sunlight for at least four hours a day and don’t overwater them, they should do just fine throughout the winter. 

Pothos

Pothos makes the list of sturdy plants best suited for negligent owners and harsh winters. They’re great houseplants for novices which is why they are so common in households. They can handle the chill from being placed in front of windows and they don’t need much light in order to thrive during the winter. 

Phalaenopsis Orchid

The orchid is another popular houseplant both year-round and especially in the winter. It doesn’t require too much effort to maintain and does really well in the colder weather. 

Sansevieria

This is a great houseplant that does well in almost all conditions. It can handle direct sunlight just as well as it handles shade. You won’t need to move them depending on where the light comes into your home or set them outside at any point. As long as your home is well insulated it can handle the fluctuations in heat depending on when your heater is used. As long as they don’t freeze and you don’t overwater them, they should survive the winter easily.

Is it acceptable to put a rug on your carpet? It’s not something you see commonly and there are many who would frown upon putting a rug over your carpet. It’s considered a common mistake made by college students and young professionals when it comes to decorating their homes. 

The one thing young professionals and college students have in common are that they usually rent and have no other options, often working with outdated carpets. The floors, especially carpets are the one part of a home tenants have almost no control over.  So if you don’t like the way your carpet looks and you want to make the room pop, here are a few tips for laying a rug: 

The texture

The type of area rug you select depends on the type of carpet you have. If you have a plush carpet, you’ll want to use a low-profile rug. The opposite is true if you have a low-pile carpet. If you have a low-pile carpet, you’ll want to consider using something a little more plush like a shag rug.

Keep it to scale

You don’t want to use an area rug that is too small for the room and doesn’t touch any furniture and you also don’t want to use one that is too big and just looks awkward in the room. 

Color coordinate 

A good rule of thumb is to use colors that don’t clash with the existing carpet. This goes for most decor. Though sometimes you want something to intentionally stand out, the area rug on top of the carpet isn’t the time. 

Opposites attract

Like the color, you’ll want to make sure the pattern of the rug doesn’t clash with the carpet and create some kind of optical illusion. When choosing the pattern, always go with the opposite of however the carpet looks. This is a similar rule to other kinds of flooring. If the carpet has no pattern, then you want to use an area rug with some type of pattern. If your carpet has a pattern, then you will want to use an area rug without a pattern. 

Drop anchor

Area rugs on carpet are much easier to trip over than rugs on a hard floor. They can also start to roll up around the edges due to weight from other objects pressing down towards the middle making them even easier to trip over. Anchor down the edges to ensure you don’t injure yourself or any guests.

There’s more to consider beyond personal preference regarding home appliances in a rental unit. Depending on the type of rental unit, you probably aren’t getting the top-of-the-line appliances, but you also don’t want them to be so low-quality that they would be undesirable for tenants. 

You may not want to replace the appliances as well. If they are still good quality or relatively new, you may want to fix them if they have any issues. Here is what to consider with repairing and/or replacing home appliances. 

The age

When it comes to replacing an old appliance with a new one, the rule of thumb is to replace it if it is more than halfway through the average lifecycle or if the cost to repair the appliance is more than half of the original price. The typical lifespan of an appliance can vary by brand, but here are the average lifespans of common appliances:

• Washer: 10 years
• Refrigerator: 13 years
• Range hood: 14 years
• Microwave: 9 years
• Gas range: 15 years
• Freezer: 11 years
• Exhaust fan: 10 years
• Electric range: 13 years
• Dryer: 13 years
• Disposal: 12 years
• Dishwasher: 9 years
• Compactor: 6 years

Efficiency 

New appliances don’t just have a lot of cool features and aesthetics. It’s not just that they can connect to Alexa and integrate with your smart home. The main feature is that they are usually more energy efficient than older models. This is more pronounced with older appliances. This may not be important for you as a landlord unless you cover the utilities, which is a great way to reduce costs. You may also want to advertise your property as eco-friendly and new appliances will help decrease the tenants’ carbon footprint. 

Nothing wrong with a little style

There’s no rule that says rental units need to be drab or outdated. In fact, the more stylish and up-to-date a rental unit is, the higher the rent is likely to be. This doesn’t mean you need to go all out and get the most expensive name brands and every single appliance a rental could possibly want, but it does mean you should consider the quality of the appliance as well as how visually appealing it is with the rest of the home.

One of the most important decisions to make when becoming a landlord is to decide how much to charge for rent. At a minimum, you want to cover all of your expenses and at least break even. Real estate is a long-term investment and you don’t want to miss out on revenue by setting prices too low or too high. The clock is running and if you miss out on revenue, that’s time and money you can’t get back. Here are some helpful tips for calculating your rent rate: 

Too high or too low

Just because you have a large mortgage payment or maybe even a high-interest rate, doesn’t mean you get to charge whatever you want. A common misconception is that landlords can just increase rent whenever they want, however high they want, but it doesn’t work that way. If you set your rent too high, it’ll take a lot longer to find a tenant and every day a rental unit sits vacant is a day you’re losing money. 

There are also risks in charging too little. Even though you’ll be able to fill the unit quickly, you’ll be missing out on revenue and as every property owner knows, there are unforeseen expenses that can be quite costly. You’ll want to earn every penny you can in case of a very expensive rainy day. Some states and cities also have rent control and anti-price gouging laws that restrict how much a landlord can increase the rent when a tenant is already living in the unit. This means you may end up with a tenant staying in the unit because it’s a good deal while you will be unable to increase the rent rate to the market rate. 

What to Consider 

Rent rates aren’t just about plugging numbers in a calculator based on your costs and how much you want to make in profit. There are a number of unpredictable circumstances within the local and global economy that impact how much you can charge for rent. The basic functions of supply and demand still exist with housing. If you are renting a unit in a location with a declining population, it’ll be difficult to increase your rent. If you are renting in a region with a growing economy and institutions that create stability like universities, you will likely be able to increase your rent rate regularly. 

It’s not just the existence of jobs and a strong local economy that impacts how much you can charge. Another factor is how much people earn in the region. If you’re in a high-salary, high-productivity region, you will see a high area median income. This is a good indicator that you will be able to charge higher rents. 

The basics

There are some fundamentals that can help you get to a good starting point. The rental rate of a property is typically between 0.8% and 1.1% of the value of the home. If your home is valued at 300k, then rent would hypothetically be between $2,400 and $3,300. This method doesn’t work as well when you start going into the extreme highs and lows of value. If your property value is much lower than the market rate, then you’ll want to charge a little more and if your property is on the high end, you’ll probably want to charge a little less. 

Look at the comps

Take stock of your rental unit. Consider the number of rooms, bathrooms, square footage, yard space, amenities, appliances, and the general condition of the unit. Once you have all of this down, you can search online to see what landlords are charging for similar units within the area. Just remember that it’s possible that everyone within the region is using bad data and basing it off prices others set with bad data. In order to ensure you charge the right rate, you can use property management software like Ziprent which has much better aggregate data on the rental market.

Rent Adjustments

It’s important to remember as well as the end of lease agreement is an opportunity to adjust the rent for both the existing tenant and the new tenant. Regardless on the rental market, the rent should at least adjust for inflation if not additional market forces.

Furthermore, remember to factor in pro rated rent for the existing tenant moving out of the rental and the new tenant moving in. We are multiple ways to adjust and pro rent the rate depending on the state.