If the booming popularity of house-flipping shows on television are any indicator, being a landlord is incredibly lucrative. Before you jump on the flipping bandwagon, stop for a moment and give it some thought. What these shows don’t tell you is that these landlords have been in the business for years, honing their craft and perfecting their skill. The shows also fail to mention that there are some cities where you can make thousands, and there are some cities where you will make zip. Here are the five best cities in America for people who want to become someone’s landlord:
Ask anyone in the business and they will tell you: Las Vegas is the number one city for landlords. With the recent downturn in the economy, foreclosures in the city are at an all time high, and foreclosures are turning owners into renters. In fact, home ownership in the city is only 55 percent, meaning that the rest of the citizens of Sin City are looking for rentals. If you can find a great house to rent out, you could be raking it in in a short time.
What was once the auto capital of the world is now a city with massive unemployment rates. People in the city are losing both their jobs and their homes in record numbers. Not only will you be able to snag a great home in a bank sale, but you’ll be able to rent your home in a matter of weeks. The key to buying in Detroit lies in purchasing a home in the better areas of the city. If you buy a home in a rundown section of Detroit, you’ll be waiting for months to find a great tenant.
You have two choices in Orlando: buy a home and rent it out, or buy a home and lease it to vacationers. Either way you go, you can expect to pull in close to $1,000 a month doing virtually nothing. Rents in the city are projected to climb more than 15 percent over the next three years, meaning that your income will increase as well. Leasing your home out to vacationers can be even more profitable. If you charge just $100 a night, you can easily make more than $2,000 per month.
If you want to own a home in the land of movie stars and sunshine, you can’t go wrong with San Jose. Though the city experienced rates of unemployment that were in line with the rest of the nation, they’ve seen the most job growth of any city since 2010. The average cost of rent continues to rise in the city, making it a great place to get in on the landlord trend.
Home prices in Phoenix fell by over 45 percent when the housing market crashed, causing many to find that they were upside-down on their mortgage. As people began to lose jobs, they also began to lose their homes. The city of Phoenix faced such a tremendous foreclosure crisis that close to half of its citizens now find themselves renting. The job market is starting to grow in Phoenix, and retirees are flocking to the city in record numbers. These two facts alone make Phoenix a fantastic city for landlords.
Being a landlord is not without its headaches, but the process is much smoother when you choose the right city. If you’ve thought about purchasing property and renting it out, any of the five cities above would be a fantastic choice.