- Real-estate investment opportunities can be tricky to identify in the current market, which is full of contradictions. Single-family home prices are at record highs nationally, for example, even as certain marquee areas, like Manhattan, struggle.
- Given the unpredictable climate, some locations are better suited for investment than others, according to longtime real-estate investor Cody Sperber.
- The self-described “clever investor,” Sperber started out in real estate when he was in debt and has now closed hundreds of millions of dollars in deals utilizing strategies like house flipping, among others.
- He listed Boise, Idaho, Dallas, Texas, and Columbus, Ohio as some of the cities ripe for investment in 2021.
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Smart real-estate investors should always be on the lookout for new opportunities.
And because some areas of the US are facing projected home-price decreases over the next year, investors might be able to find affordable properties with the potential for significant upside.
One of them is longtime real-estate investor Cody Sperber, the self-described “clever investor” and founder of “for-purpose” development company Green Elephant Development. He started investing in real estate when he was in debt and has now done hundreds of million in deals, from house flips to rehabs and more.
2021 is the year of the “urban purge,” Sperber told Insider, as people continue to leave big cities for affordable homes and lifestyles in what were once flyover states. Because Sperber favors an investment strategy that most often deals with home flips and rental unit acquisitions, he said many of those flyover states are where he’s currently focused on doing business, from Idaho to Texas. There, he can buy affordable properties to either renovate and resell for higher prices or rent out to tenants to generate passive income.
Sperber and his team look for property in areas where job growth and population growth are both high, investors are active, appreciation rates are strong, and the local government is landlord-friendly. These indicators can make a big difference for an investor’s bottom line, he said, as overhead costs, tenant laws, and a number of other financial factors vary by state. Picking the right location, then, is key for generating passive income from real-estate.
With that in mind, here are 7 cities Sperber said investors should keep an eye on if they’re looking to maximize returns in 2021.