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The Best Cities for First-Time Real Estate Investors

May 20, 2025
Small Business Blog
The Best Cities for First-Time Real Estate Investors
Small Business Blog
The Best Cities for First-Time Real Estate Investors

The Best Cities for First-Time Real Estate Investors

May 20, 2025

Table of Contents

Investing in real estate can raise several important questions, with one of the most fundamental being: Where should you invest your money? Analyzing the map below can help you move closer to finding an answer. This map highlights the 50 best cities in the United States for real estate investment. Each of these cities has unique characteristics that make them attractive places to live. Consequently, many cities on this list are experiencing steady population growth. A city with an increasing number of residents presents lucrative opportunities for real estate investors. At LLC Attorney, we conducted an in-depth analysis to identify the best U.S. cities for first-time real estate investors.
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The Top Four Cities for Real Estate Investment

On our list of 50 cities, these four earned the highest scores for real estate investment.

1. Port St. Lucie, Florida

Port St. Lucie occupies the number one spot on the list for several reasons. For one, the city is experiencing a gradual rise in population, and this trend shows no signs of slowing down. The median sale price for homes in Port St. Lucie is $376,567. This is an affordable option for real estate investors compared to the median sale price of homes in other Florida cities, such as Miami ($592,333) or Tampa ($450,000). The job market in Port St. Lucie is strong and attracting more people who work in the fields of healthcare and education. The city is business-friendly, offering valuable resources to entrepreneurs. With all these enticements attracting more residents, investors are finding numerous opportunities for rental income in the town of Port St. Lucie.

2.Cape Coral, Florida

When it comes to being ripe with real estate investment opportunities, Cape Coral is right on the heels of its fellow Florida city, Port St. Lucie. Cape Coral has low property taxes, which is a plus for both seasoned and new real estate investors. Similar to Port St. Lucie, the population of this city has been steadily growing each year, resulting in a corresponding increase in housing demand. Both seasonal and year-round residents flock to Cape Coral for its beautiful beaches, lush parks, and laid-back lifestyle. All of these alluring features combine to make Cape Coral a magnet for investors seeking rental income.

3. Cleveland, Ohio

Cleveland is the only city in the top four located in the midwestern part of the U.S. Despite its cold, snowy winters, Cleveland garners a lot of attention from real estate investors. The affordability of housing is one reason why this city is so appealing. The median sale price of homes in Cleveland is $100,333, whereas the median price of homes nationwide is much higher at $419,200. Additionally, Cleveland boasts a stable economy, with several large employers, including Cleveland Clinic, Key Bank, Sherwin-Williams, and Sysco, among others. The presence of numerous healthcare facilities and reputable companies in the city attracts more workers who require a place to rent.

4. Garland, Texas

The median sale price of a home in Garland is $296,000, which is notably higher when compared to places like Cleveland or Memphis. However, when compared to other major cities in Texas, such as Austin or Dallas, the housing in Garland is considered more affordable. This is what makes it one of the top emerging real estate cities in the Lone Star State. Employment opportunities at Texas Health Presbyterian Hospital, FedEx, Interceramic USA, and Arena Brands, Inc. lure more people to Garland, increasing the demand for housing. Garland is conveniently located near Dallas and other major cities, providing residents with easy access to a diverse range of shops, restaurants, and entertainment options. This is just another reason why it’s one of the best cities for purchasing rental property.

Tips for Beginners Investing in Real Estate

Review these tips to successfully kickstart your real estate investment journey.

Get Advice From Seasoned Investors

One way to avoid beginner’s mistakes is to take the time to learn the basics from experienced real estate investors. Reading practical guides, attending conferences, and watching videos created by real estate investment experts can help you become aware of some of the pitfalls, allowing you to avoid them.

Think About Your Location Preference

Do you want to invest in property that’s near your home? Maybe you live in one of the cities on our list of 50. Or would you prefer to invest in out-of-town property? There are advantages to both options. When you invest in a nearby property, it’s more convenient to visit and monitor its progress. While visiting an out-of-town property is not as convenient, you have the option to hire a property manager to keep you informed about the condition of your investment.

Forge Relationships With Fellow Investors

Whether it’s through social media, at your local chamber of commerce, or investment conferences, it’s essential to connect with other real estate investors. Networking with investors enables you to benefit from practical suggestions and recommendations from individuals who have already gone through the process. For instance, someone who has been investing in real estate for ten years in Garland is going to be familiar with Texas landlord laws. Having a support system of people is extremely valuable, especially when unforeseen issues arise, and you need quick advice.

Create an LLC for Your Real Estate Business

Forming a real estate limited liability company (LLC) can be a pivotal step in protecting your assets and optimizing your tax benefits. As you embark on your exciting new venture in the real estate market, our team of experienced attorneys is here to guide you through the process of establishing an LLC tailored to your specific needs.

Take a moment to review what each of our LLC formation plans includes and select the one that best aligns with your vision and objectives. Let our expertise in LLC formation and real estate law work for you, providing the clarity and support you need to navigate this exciting journey with confidence.

Real Estate Investment Index

Methodology

The best U.S. cities for first-time real estate investors were determined using the Real Estate Investment Index to rate the 100 most populous cities on several important considerations when choosing an investment property location. The index highlights the 50 best cities with a combination of the most affordable properties, high rental income potential, and landlord-friendly laws. While most states regulate residential renting and have legislation regarding rent control, security deposits, and evictions, we have included the relevant state-level laws. In states permitting rent control, cities have the authority to establish their own regulations. For further details on local rent control laws, please contact the relevant municipality.

RENTAL INCOME POTENTIAL

Average Monthly Rent (10 points) – The average monthly rent for all bedrooms and property types in the city as of February 2024. Cities with higher average rents have greater rental income potential, thus earning a higher index score.

Median Sale Price (10 points) – The median price of houses sold in the city as of December 31, 2024. Cities with lower median sale prices have more rental income potential, thus earning a higher index score.

Gross Rental Yield (10 points) – The Gross Rental Yield (GRY) is the annual rent collected from a property compared to its purchase price. It is used to determine whether the property is a worthwhile investment. Cities with higher GRYs have more rental income potential, thus earning a higher index score.

Market Temperature(5 points) – Based on changes in renter demand compared to the national average, a hot market has increasing demand, while a cool market has decreasing demand. Cities with “warm” markets earned an additional five points, and cities with “cool” markets did not earn any extra points.

LANDLORD-FRIENDLY LAWS

Average Eviction Time (5 points) – The average number of weeks it takes to evict a tenant from start to finish in the state where the city is located. Longer eviction processes can negatively impact landlords through lost rent and increased legal fees; thus, shorter eviction times earned a higher index score.

Security Deposit Limit(5 points) – Is there a legal limit on the amount a landlord can charge tenants for a security deposit in the state where the city is located? Larger security deposits protect landlords from the financial risks of property damage or rent nonpayment. Cities with no security deposit limit earned the most points, while cities with the fewest months’ rent required for a security deposit earned the least points.

Rent Control Laws (5 points) – Are there rent control laws in the state where the city is located? Rent control laws can lower property values and deter investments in the rental market. If no rent control laws exist or the state prohibits or preempts them, the city earned an additional five points. If the city has rent control laws, it earned no extra points.

The 50 Best U.S. Cities for First-Time Real Estate Investors
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Rank City Avg Monthly Rent Median Sale Price Gross Rental Yield Market Temp Eviction Time Security Deposit Limit Rent Control Laws Investment Score
1 Port St. Lucie, FL $2,600 $376,567 8.3% Warm 2–3 None Prohibits / Preempts 36.77
2 Cape Coral, FL $2,290 $322,633 8.5% Warm 2–3 None Prohibits / Preempts 36.76
3 Cleveland, OH $1,200 $100,333 14.4% Cool 5–8 None No 35.66
4 Garland, TX $2,000 $297,367 8.1% Warm 4–12 None Prohibits / Preempts 34.85
5 Miami, FL $3,000 $508,167 6.1% Warm 2–3 None Prohibits / Preempts 34.79
6 Jacksonville, FL $1,600 $270,167 7.1% Warm 2–3 None Prohibits / Preempts 34.76
7 St. Petersburg, FL $2,200 $377,167 7.0% Warm 2–3 None Prohibits / Preempts 34.75
8 Columbus, OH $1,500 $238,167 7.6% Warm 5–8 None No 34.5
9 Detroit, MI $1,200 $83,400 17.3% Cool 2–8 None Prohibits / Preempts 34.48
10 Fort Worth, TX $2,060 $317,333 7.8% Warm 4–12 None Prohibits / Preempts 34.44
11 Indianapolis, IN $1,425 $227,333 7.5% Warm 3–16 None Prohibits / Preempts 34.4
12 Memphis, TN $1,300 $140,533 11.1% Cool 4–8 None Prohibits / Preempts 34.38
13 Irving, TX $2,300 $366,783 7.5% Warm 4–12 None Prohibits / Preempts 34.26
14 Tampa, FL $2,075 $376,483 6.6% Warm 2–3 None Prohibits / Preempts 34.14
15 El Paso, TX $1,500 $242,129 7.4% Warm 4–12 None Prohibits / Preempts 34.14
16 Corpus Christi, TX $1,557 $254,967 7.3% Warm 4–12 None Prohibits / Preempts 33.9
17 Orlando, FL $2,000 $374,267 6.4% Warm 2–3 None Prohibits / Preempts 33.82
18 San Antonio, TX $1,666 $279,458 7.2% Warm 4–12 None Prohibits / Preempts 33.56
19 Philadelphia, PA $1,615 $230,583 8.4% Warm 4–8 2 No 33.31
20 Frisco, TX $2,900 $613,083 5.7% Warm 4–12 None Prohibits / Preempts 32.91
21 Nashville, TN $2,195 $421,667 6.2% Warm 4–8 None Prohibits / Preempts 32.87
22 Chicago, IL $1,900 $337,667 6.8% Warm 2–20 None Prohibits / Preempts 32.72
23 Plano, TX $2,600 $528,500 5.9% Warm 4–12 None Prohibits / Preempts 32.66
24 St. Paul, MN $1,395 $279,241 6.0% Warm 2–12 None Prohibits / Preempts 32.49
25 North Las Vegas, NV $2,084 $404,667 6.2% Warm 1–6 3 No 32.37
26 Toledo, OH $895 $115,333 9.3% Cool 5–8 None No 32.24
27 Minneapolis, MN $1,550 $315,000 5.9% Warm 2–12 None Prohibits / Preempts 32.23
28 Henderson, NV $2,231 $476,650 5.6% Warm 1–6 3 No 31.81
29 Las Vegas, NV $2,000 $414,667 5.8% Warm 1–6 3 No 31.77
30 Dallas, TX $2,020 $424,000 5.7% Warm 4–12 None Prohibits / Preempts 31.65
31 Aurora, CO $2,050 $464,667 5.3% Warm 2–16 None Prohibits / Preempts 31.36
32 Oklahoma City, OK $1,350 $205,167 7.9% Cool 2–7 None Prohibits / Preempts 31.13
33 Tulsa, OK $1,350 $206,667 7.8% Cool 2–7 None Prohibits / Preempts 31.04
34 Colorado Springs, CO $1,850 $443,500 5.0% Warm 2–16 None Prohibits / Preempts 30.77
35 Boise, ID $1,795 $489,150 4.4% Warm 1–8 None Prohibits / Preempts 30.72
36 Denver, CO $2,039 $556,833 4.4% Warm 2–16 None Prohibits / Preempts 30.15
37 Lubbock, TX $1,399 $212,083 7.9% Cool 4–12 None Prohibits / Preempts 33.09
38 Portland, OR $1,775 $526,300 4.0% Warm 2–8 None Prohibits / Preempts 29.94
39 Irvine, CA $4,800 $1,477,833 3.9% Warm 5–8 2 No 29.93
40 Gilbert, AZ $2,495 $566,667 5.3% Warm 1–6 1.5 Prohibits / Preempts 29.91
41 Tucson, AZ $1,600 $324,811 5.9% Warm 1–6 1.5 Prohibits / Preempts 29.91
42 Virginia Beach, VA $2,125 $366,833 7.0% Warm 8–16 2 Prohibits / Preempts 29.87
43 Chandler, AZ $2,299 $505,000 5.5% Warm 1–6 1.5 Prohibits / Preempts 29.83
44 Austin, TX $1,995 $553,333 4.3% Warm 4–12 None Prohibits / Preempts 29.75
45 New Orleans, LA $1,750 $294,167 7.1% Cool 2–5 None Prohibits / Preempts 29.65
46 Madison, WI $1,650 $382,033 5.2% Warm 8–16 None Prohibits / Preempts 29.65
47 Arlington, TX $2,095 $317,119 7.9% Cool 4–12 None Prohibits / Preempts 26.64
48 Phoenix, AZ $1,939 $413,333 5.1% Warm 1–6 1.5 Prohibits / Preempts 29.63
49 Chesapeake, VA $2,100 $372,688 6.8% Warm 8–16 2 Prohibits / Preempts 29.61
50 Anchorage, AK $1,800 $370,817 5.8% Warm 4–8 2 No 29.49

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Sources:

https://www.zillow.com/rental-manager/market-trends/
https://www.zillow.com/home-values/102001/united-states/
http://www.landlord.com/rent_control_laws_by_state.htm
http://www.landlord.com/security-deposit-law-guide.htm
https://ipropertymanagement.com/laws/eviction-process

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LLC Attorney Team
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Welcome to LLC Attorney, where our mission is to make the process of forming and maintaining your LLC as smooth and stress-free as possible. Our team is a dedicated group of professionals with a shared passion for helping businesses thrive.

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