Why Jacksonville, FL?
There is no other major city where a family can live near the Atlantic Ocean coast in a home priced below $100,000. For real estate investors there is no better place. Jacksonville is among the leading cities in the U.S. with a wealth of investment properties generating high cash flows.
Since the 2008 Great Recession in the U.S. we have grown used to low house prices, but such prices have been common in sub-tropical coastal areas. Nonetheless, prices will not always remain at these level. Jacksonville real estate prices rose by 7% in 2015 and are expected to rise further by 5%-6% in 2016.
Jacksonville has a strong economy.
It is the only city in Florida that is home to the headquarters of four “Fortune 500” companies. It is a diverse industrial city with several main economic and employment sectors:
- Army – with a large military presence Jacksonville is home to more than 80,000 military jobs.
- Logistics Center – the Marine Logistics Center in Jacksonville provides services to the entire Southeast U.S.
- Seaport – JAXPORT provides 65,000 jobs.
- Hi-Tech – Jacksonville was ranked the 6th “high-tech city” in the US.
- Medical – over 100,000 jobs in the medical field.
- Aviation – Jacksonville is home to more than 100 military aviation industry companies.
Jacksonville’s population grew by 2.5% last year – twice the average throughout the U.S. It is the twelve largest city in the United States and the largest in the state of Florida. Population growth is vital for a strong real estate market. More people = more tenants and more buyers.
Supply and Demand
The growing demand for rental homes in Jacksonville is a well-known fact owing to the endless stream of new residents (2.5% annual population growth)- but what about the supply of homes?
Many homes have been on the market since the 2008 crisis due to foreclosures, with investors buying properties at a remarkable rate. With more and more families choosing to rent over buying a home for themselves, rental rates are rising and smart investors are earning very high and unprecedented rental yields in relation to house prices.
What the experts are saying about Jacksonville?
- “Forbes “ranked Jacksonville 3rd among the 10 leading cities to relocate to in order to find a job. (4/2014)
- “Forbes” ranked Jacksonville 2nd among the U.S. cities creating the most tech jobs. (2/2015)
- Jacksonville was ranked No. 1 on the list of “Most Improved” from September 2014 to September 2015 and No. 16 on the list of “leading economies in the United States.” (2015)
- Bloomberg Business Week ranked Jacksonville 4th among cities with the largest growth of employment in medicine and technology
Why Rochester, NY?
Could your next investment home be in Rochester NY? The greater Monroe County area of New York of which the City of Rochester is the centerpiece, is a great place to live and raise a family. It is located on Lake Ontario, has a very stable economy (home to Eastman Kodak, Bausch & Lomb and Xerox among others) , and because of its affordable housing stock has been found of late to be a great place to invest your money.
In Rochester you can buy a single family home for as little as $60,000 and expect a monthly income of at least $750/month.
Rochester is the site of many important consumer product inventions and innovations. The Rochester area has been the birthplace of large research oriented and manufacturing corporations in the fields of industrial and consumer products, among them:
- Bausch & Lomb
Up until 2010, the Rochester metropolitan area was the second-largest regional economy in New York State, according to the U.S. Internal Revenue Service, after the New York City Metropolitan area. Rochester’s GMP has since ranked just below that of Buffalo, NY, while still exceeding it in per-capita income.
Rochester is an international center of higher education, as well as medical and technological development. The region is known for many acclaimed universities which are nationally renowned for their research programs, notable among them:
- The University of Rochester
- The Rochester Institute of Technology
Over the years Rochester has become home to a much more diversifieds and balanced economy. Some of the industry clusters for which Rochester is best known include healthcare, photonics, optics, digital & health imaging, precision manufacturing, telecommunication, information technology, higher education and the biosciences. The established strength of the area’s high-tech industries, and continueds investment in these industry sectors, suggest a bright outlook for Rochester’s future economy.
Rochester remains the third largest city in the state after New York City (8.55 million) and Buffalo, (258,071).
Supply and Demand
- The 25th edition of the Places Rated Almanac rated Rochester as the “most livable city” in 2007, among 379 US metropolitan areas.
- In 2010 Forbes rated Rochester as the third-best place to raise a family.
- In 2012 Kiplinger rated Rochester as the fifth-best city for families, citing low cost of living, top public schools, and a low jobless rate.
Given these facts and figures it is no wonder that Rochester is a fantastic place for real estate investors seeking great returns for their money.
What the experts are saying about Rochester?
- The New Republic named Rochester “One of the most innovation-intensive metro areas in the country”.
- The Atlantic magazine lists Rochester as one of its “35 innovations hubs in the country” based on the number of new start-up companies, accepted patents and number of entrepreneurs per million residents.
- The MGIC Market Trend Analysis Report for 2017 shows a decreased unemployment rate and an increased employment rate.
Why Cleveland, OH?
The city is located on the southern shore of Lake Erie, approximately 60 miles west of the Pennsylvania border and has become a manufacturing center owing to its location on the lake shore. The business climate has turned around 100%, which makes it a great time for investors to buy in Cleveland OH. In fact construction activity in downtown Cleveland currently amounts to about $4 billion. What’s more some inner-city neighborhoods have seen a 400%+ price appreciation over the past ten years.
Real estate in Cleveland is generally very inexpensive – you can purchase a single family home for $70,000 – $80,000 and earn a return of at least $850/month.
The State of Ohio has a balanced economy that is not overly dependent on a single industry, in contrast to Texas for example that is dependent on oil. The middle market includes: manufacturing (23 %), wholesale trade (12 %), retail (11 %), healthcare (10 %), construction (7 %), professional services (6 %), finance and insurance (5 %), and transportation and warehousing (3 %).
Cleveland serves as the headquarters to 11 industrial and non-industrial companies on the Fortune 500 list among them:
- Cliffs Natural Resources
- Forest City Enterprises
- NACCO Industries
- National City Corp.
- Parker Hannifin Corp.
- American Greetings Corp.
- Ferro Corp.
- Medical Mutual of Ohio
- Applied Industrial Technologies
- Lincoln Electric Holdings
Cleveland is also home to 27 area colleges and universities, including:
- Case Western Reserve University
- South University – Cleveland
- Notre Dame College
- Bryant & Stratton College – Cleveland
- Cleveland State University
Ohio’s middle market is comprised of nearly 5,400 businesses that together generate more than $225 billion in annual revenue and employ 28 percent of the state’s workforce.
Ohio companies expanded their employment by 6.4 percent over the past year, and another 5.1 percent increase is expected next year.
These are excellent numbers, with middle market executives nationwide indicating that their company’s employment grew by 3.6 percent last year, and that they expect to increase employment by only 2.7 percent in the coming year.
The city proper has a population density of 5,107 persons per square mile. The Greater Cleveland area is the 28th largest metropolitan statistical area in the U.S. with a population of just over 2 million. The larger Cleveland-Akron-Canton Combined Statistical Area (CSA) has a population of 3.5 million and is the 15th largest CSA in the country.
Supply and Demand
Cleveland’s job market continues to grow with a sizable push from the health care industry as well as large and mid-size companies.
With strong demand for rental properties, Cleveland presents some impressive investment opportunities. Many investors looking for income properties find Cleveland to be a balanced investment providing a steady cash flow.