7 States That Make The Most Money From Investing In Real Estate

Investing in real estate is a great way to manage the extra cash flow since it provides excellent returns and there are several tax advantages. People who invest in real estate also do so since it enables them to have a diverse fiscal portfolio, which is an excellent way to build wealth over time. There are several other advantages to making real estate investments; for example, you can rent out units and collect rental income or profit generated by a business that operates on the premises, both of which account for a form of active income generation. In all cases, real estate investment is an excellent way to increase the value of your nest egg, and it's no wonder that several states are seeing considerable increases in fiscal growth as a result. 

There are specific states that are generating revenue from real estate investment; read on for more information.

1. Florida

Florida has been one of the best states to invest in real estate for years now. The state boasts a relatively affordable cost of living, making it attractive to young professionals of different professional backgrounds, and its economy is flourishing. The houses built there are known to be some of the most beautiful in the country, while also retaining a modicum of affordability when it comes to real estate costs. The state, of course, is famous for its tourism and major events are held there every year, bringing in massive waves of visitors looking to enjoy the sunshine and gorgeous oceanfront views. 

2. Idaho

This state boasts highly affordable prices in a thriving part of the country, thus making it prime territory for real estate investment. As these homes in Meridian Idaho from Stewart Realty LLC reveal, beautiful homes in excellent communities can be purchased for relatively modest prices and rented out at an average of $1500 a month, which is an excellent indication of the bustling market. The gorgeous properties are right out of the pages of architectural digest, and given the bustling local economy, the climate is very amenable to real estate investment. There is a technology-focused market that feeds into a growing job market, making it increasingly popular amongst young professionals moving there at higher rates and baby boomers looking for a copacetic place to settle. 

3. Nevada

Another excellent state to pursue real estate investment opportunities now and to strike while the iron is still hot is Nevada. The state’s prices are currently rising at a very fast rate, thus ensuring that you will get a return on your investment rather quickly, whether it will be from tourists looking to rent a vacation property, or more permanent mainstays who are drawn to the state’s growing economy. 

Furthermore, the population growth in Nevada is rather high, while the property tax rates are extremely low. This ensures that you will be saving money, while also getting a healthy return on your investment.

4.Washington

While notorious for its rainy weather, Washington and its city of Seattle boasts one of the most expensive real estate markets in the country. While, yes, the properties may cost you a pretty penny, the property taxes are virtually nil. Because of the local tech boom, you will not have trouble finding people who would like to rent, and because of the income levels, the going rates for apartments or homes are fairly high. The house will only grow its appreciation value over time, ensuring that you have a robust investment that can be safeguarded for your family over time.

5. Colorado

Another state that has a proven track record of home appreciation value relative to its population growth is Colorado. It is another place wherein you may want to strike while the iron is still hot and purchase a property before it becomes far too expensive to even consider investing there. Colorado has a wonderful natural beauty that attracts plenty of tourists every year. Also, its capital of Denver boasts a booming economy that has proven attractive to several major companies. The property tax rate is also incredibly low, all of which combine to create a healthy atmosphere for real estate investment since no shortage of potential renters can afford to plunk down a sizable amount of money to be able to live there.

6. Oregon

The beautiful state of Oregon boasts some of the lowest unemployment rates in the country. It’s a central city of Portland that has gained a great deal of bustling artist communities, rich arts and culture scene, and so on. The properties themselves tend to have unique architectural structures and remain relatively affordable. Due to the influx of young professionals moving there at increasing rates, there is no shortage of people available to rent the properties. Since many of those moving to Oregon these days are from East and West coast cities trying to escape the exorbitant rates and high costs of living there, they can afford more flexibility when it comes to how much they are willing to pay in rent in their new home of choice.

Also, it’s worth noting that many homeowners earn a great deal of money from vacation rentals in Oregon, and not just in Portland. There are many quiet cities or rural areas on the outskirts of Portland that attract visitors looking for a chance to unwind, making the state as a whole an attractive destination year-round.

7. Arizona

The employment rate in Arizona has been on the up and up in the past few years and shows no sign of abating. The population has also grown, as did the cost of housing. The real estate market is very open to new investments since the property taxes remain low, and business is growing at a steady rate. The great thing is that there is a balance in terms of the affordability of real estate there, with a booming economy that makes it very amenable to a renter’s economy.

A real estate investment is one of the best ways in which to see your wealth grow over time. While renting out of state has a few hurdles you need to be aware of, the best real estate agents will help you figure out the nitty-gritty details, and it should not be a stressful headache to take on at all. All you need to do is to focus on which state seems right for you and contact the right professionals to help you understand the rest.