Just as California real estate values are topping out, other parts of the country are just beginning their housing recovery.
Today feels a lot like 2006, when Real Wealth Network was strongly advising Californians to sell their over-priced properties and exchange them for under-valued homes in Texas. Those who listened were able to save their equity before it disappeared during the Great Recession while quadrupling their cash flow, and then riding the Texas housing boom where they built even more equity.
It was a great time to build wealth then, but it may be even a better time now. That’s because California home prices are now above 2006 levels, and the replacement properties in emerging markets are half the price that Texas was at the time. This means investors can get even higher cash flow and even more potential equity this time around.
We chose to invest Texas back in 2006 because of the job and population growth combined with low home prices, even though most people thought we were crazy. They’re not saying that anymore.
But Texas may be in its own little housing bubble right now, so we’re moving our sites to other cities that have the same dynamics that Dallas and Houston had in 2006 – job growth, population growth and affordability.
The number of people moving to downtown Cleveland is up 32% from 1990 to 2000—the largest population increase of any Midwest city (including Chicago) and far above the regional average (7.7 percent), according to Brookings.
And the pace is picking up, with an all time high of 12,500 moving downtown just last summer, mostly comprised of the coveted Millennials (ages 18-34). This demographic shift is referred to as the “brain gain,” since there’s been a 139% rise in the number of young residents with bachelor’s degrees.
Why? Downtown Cleveland has experienced a renaissance over the past 5 years, with an estimated 19 billion in development completed or planned since 2010. Occupancy rates are at an astonishing 98% and home sales are up 12% year over year.
The area has the fastest growing healthcare economy in U.S., with the world renowned Cleveland Clinic, the nation’s first Global Center for Health and Innovation, and a new medical convention center. 10 Fortune 500 companies, 27 area colleges and universities, the world’s largest metropolitan lakefront and three major sport teams all bring billions of dollars to the area every year. Plus, few people know that Cleveland has the 2nd largest live theater district in the U.S., second only to New York City!
That’s why Cleveland makes our list of the best high cash flow cities poised for growth. REAL turn-key rental homes can be purchased for approximately $70k-80K that rent for $800-$1000/month.
Kansas City, MO
RentRange released their annual report on the top 25 cities that have seen the largest rental increases this year. Kansas City made the list with rents up 10.6% this year!
Here’s what’s driving some of that growth:
- A brand new $4.5M health care campus on 290 acres
- 16,000 new jobs created since last year
- 1st location for Google Fiber in 2013
- KC Streetcar (transit system) set to open in 2015, a $100M development
Even though rents are increasing, home prices are still in the $60,000-$85,000 range. This means one thing: real estate investors get even more for their money!
At this event, you will get to meet two of our newest REAL Turn-Key Income Property Teams. REAL Turn-Key means:
R – Renovated to RWN’s strict “like-new” standards
E – Examined with thorough inspections
A – Audited and appraised
L – Licensed property management in place
Whether you are brand new to real estate investing or highly experienced, this month’s event will show you how to avoid and even profit from the coming California real estate meltdown.
There are never any back-of-the-room, high-pressure sales at our events. Instead, you can learn about the markets, meet the property managers and REAL Turn-Key Operators, talk to other investors, and get real answers to our real estate investing questions.
Please note: In order to protect our members, we do not allow solicitors at our events.
Real Wealth Network, LLC is an educational company and is not acting as a real estate broker. Always seek the services of licensed third party appraisers and inspectors to verify the value and condition of any property you intend to purchase. Never send funds directly to a seller but instead, use the services of professional title and escrow companies. Check in with Real Wealth Network before purchasing property to verify that affiliates and markets have not changed in quality or performance. Real Wealth Network does not provide legal, tax, accounting, or other professional advice. Nothing on this website email is intended to form a contract or binding legal commitment. All content herein is the copyright © 2015 of Real Wealth Network, LLC.