The world’s largest real estate market, the U.S.A., still has a lot of “undiscovered” housing markets where yield, undervalued pricing, appreciation potential, and low barriers to entry are a recipe for success. This week, we are going to feature a few of our picks.
According to Insider Monkey, an underpriced housing market is one where the median list price tends to be lower than the typical home value. Based on Insider Monkey’s analysis of Zillow’s February 2024 Housing Market Report, the following cities present significant opportunities due to their undervalued properties, each offering distinct advantages that cater to diverse investment strategies. Here are ten promising undervalued markets to explore:
10. Van Wert, OH
Situated between Lima, Ohio, and Fort Wayne, Indiana, Van Wert offers a small-town atmosphere at an attractive price point. This affordability makes Van Wert ideal for investors looking for steady cash flow through rentals. With its growing market, Van Wert presents a potential exit strategy for those looking to capitalize on appreciation.
- Average Home Value: $160,108
- Median List Price: $134,967
- Median Rental Income: $1,500
9. Detroit, MI
Detroit, fueled by cultural revitalization and economic development projects, is attracting new residents and businesses. This positive momentum has the potential to translate into rising property values and strong rental yields, making it a market worth considering.
- Average Home Value: $240,536
- Median List Price: $211,633
- Median Rental Income: $1,250
8. Cape Coral, FL
Cape Coral is known for its extensive canal system and abundant waterfront properties. This unique feature is a cash flow magnet for investors looking to turn a profit on rentals. Cape Coral’s thriving tourism industry, fueled by vacation rentals, makes it a potential hotspot for rental income.
- Average Home Value: $396,012
- Median List Price: $364,633
- Median Rental Income: $2,290
7. Rochester, NY
Rochester, NY, boasts strong education and healthcare sectors, ensuring a steady economy and a solid real estate market. It’s an excellent choice for investors seeking a reliable long-term property investment.
- Average Home Value: $233,753
- Median List Price: $189,233
- Median Rental Income: $1,375
6. Boone, NC
Nestled in the Blue Ridge Mountains, Boone offers a combination of scenic beauty and a vibrant college-town atmosphere. This city attracts tourists and students year-round, making it a prime spot for investors seeking steady rental income.
- Average Home Value: $477,496
- Median List Price: $421,000
- Median Rental Income: $2,200
5. Santa Cruz, CA
California dreamin’? Santa Cruz offers a vibrant coastal community with stunning beachfront property. This high-demand market is perfect for long-term investors seeking reliable properties with the potential for value appreciation.
- Average Home Value: $1,148,405
- Median List Price: $1,065,167
- Median Rental Income: $3,400
4. Okeechobee, FL
Okeechobee is known for its stunning natural beauty and plenty of recreational activities, making it an appealing investment city. Investors can benefit from the potential for significant property value appreciation and a healthy rental income stream.
- Average Home Value: $264,907
- Median List Price: $178,800
- Median Rental Income: $1,500
3. Clewiston, FL
Clewiston, known as “America’s Sweetest Town,” offers a substantial perk for investors – a significant gap between property value and list price. This translates to a strong potential for appreciation, making Clewiston a great deal for investors seeking a good return on investment.
- Average Home Value: $274,997
- Median List Price: $181,033
- Median Rental Income: $2,500
2. San Francisco, CA
San Francisco remains a magnet for investors, with a strong economy, world-renowned culture, and stunning beauty. Despite higher property prices, San Francisco offers robust long-term returns, making it a high-value option for investors with long-term goals.
- Average Home Value (Feb 2024): $1,132,271
- Median List Price (Feb 2024): $951,667
- Median Rental Income (July 2024): $3,350
1. San Jose, CA
Sitting in the heart of Silicon Valley, San Jose is a goldmine for investors. With booming tech companies driving the economy, this city offers excellent potential for property value growth and steady rental income. It’s a prime spot for savvy investors looking to capitalize on the tech boom.
- Average Home Value: $1,554,128
- Median List Price: $1,315,463
- Median Rental Income: $3,044
But how does a non-resident (Foreign National and U.S. Expat) qualify for a U.S. mortgage loan?
It’s easier than you think! Regardless of where you live, work or play, investing in the U.S. housing market can be an excellent way to diversify real estate holdings for non-residents and U.S. expats. As most of you are likely aware, at America Mortgages, this is all we do. America Mortgages offers specialized loan programs, such as AM Investor +, designed to help international investors navigate the U.S. real estate mortgage market. These mortgage programs provide competitive rates, flexible terms and common sense underwriting, making real estate investment accessible and financially viable.
AM Investor + Program Highlights:
- 1-4 units (one property)
- Minimum loan amount: US$100,000
- Loan-to-Value: up to 75% for purchase & 70% for cash-out
- Underwritten using an income letter and not personal tax returns
- No U.S. credit required
- No tax returns required
- Closing in 30-45 days
- Suitable for non-resident entrepreneurs, self-employed, or pure investors
- Approval within 72 hours of submitting all documents
- Available in all 50 states
- 30-year amortization for all loans, regardless of borrower’s age
- 10-year fixed interest-only option available
Discover the potential of these top undervalued housing markets in 2024 with America Mortgages. Whether you’re a foreign national or a U.S. expat, our specialized loan programs like AM Investor + make investing in U.S. real estate accessible and potentially lucrative.
Learn how America Mortgages can help you secure U.S. mortgage financing tailored to your needs. What are you waiting for? If you’re wondering, “Will I get approved?” consider this: America Mortgages approves 97% of all loan applications. When this is all you do, no one does it better!
Contact our experienced loan officers using our 24/7 link to start your journey today!
