The upside to this down market is that investors now have a plethora of investments to choose from. From sea to shining sea, you see For Sale signs popping up on front lawns everywhere. It is, most definitely, a buyer's market and will be for some time to come.

The very best deals are typically in the markets that are hardest hit. If you want to know where to investigate for investments, you should check out the following five U.S. cities for the best real estate deals:

#1 - Detroit, MI - The city hardest hit by the economy, Detroit, experienced 4.8 times the national average for foreclosures last year. Homes in this city start from as low as $1,400.00. No, that's not a typo. They literally start from as low as one-thousand four-hundred dollars. That's about $1.22 per square foot. It would cost you more to build one of these houses. So, how could you not invest in rental property in this city with prices this low? Detroit, however, is not known for its safety. No, on the contrary, it's actually the second most dangerous city in which to live in the whole U.S. of A. Regardless, you have to admit, that is some pretty tempting pricing on that Detroit real estate. Keep in mind, you don't have to live there to invest, and there are property management companies that you can hire to manage the property for you.

#2 - Stockton, CA - This city has 4.8% of its households in some form of foreclosure action. Homes in Stockton start from as low as $20,000, and rent for as low as $390 per month. That's a record low for even the Stockton area. Speaking of records, there a record number of homes being auctioned off in this area, too. It's unfathomable. Who would not want to invest in this area? Unfortunately, this city is not known for being safe, either. Stockton ranked number eight on the list of the most dangerous metropolitan areas in which to live. There are some very good deals here, though, so you may want to pencil one of these auctions into your busy investing schedule.

#3 - Las Vegas - No, it's not true. Au contraire, everything that happens in Vegas does not stay in Vegas where a 4.2% foreclosure rate has been noted. This once very booming city that sprawled with new growth is now somewhat stigmatized. Due to exceptionally rapid growth, home values became over-inflated over such a short period of time that when the real estate crash abruptly occurred there, it left many home owners holding the bag on homes that won't be worth their purchase price for years to come. In spite of this, there are still lots of good deals in this market. Home prices start from as low as $126,000. Las Vegas is also ranked fourth on the list of most dangerous metropolitan cities.

#4 - Riverside-San Bernardino - California has been one of the states hit hardest by the down economy in regards to real estate. Average home prices still beat out the national average, but individual home prices have plummeted. Homes start as low as $25,000 in these markets, record lows for both. San Bernardino is the twenty-fourth most dangerous city and eighth most dangerous metropolitan city, although, Riverside did not fall within the top cities for crime.

#5 - Sacramento - Ranked fifth in the list of best cities to buy real estate is Sacramento. Midtown Sacramento, a.k.a. The Grid, has hip bistros and shops that cover the twenty-four square blocks at its center. Even this area of Sacramento holds exceptional real estate investment opportunities, including commercial properties. Home prices start at an incredible low of $15,000 in this market. This city did not fall within the top cities for crime.

Inside real estate operates sites that cover Dallas real estate and San Antonio real estate. They also have a site covering the El Paso real estate market.
 

5 Comments on Five US Cities with the Best Real Estate Deals

JAN
31
152,766 Points 6 Featured Posts Localism Sponsor Outside Blog Hit Router

Hello Inside San Antonio!
I am so glad to hear that we are 5th on great real estate markets!  There is only one caveat that I would like to point out...I live within 1 mile of midtown Sacramento.  I don't know where the $15,000 property is, but I have to believe that it is a misprint and missing a "0".  If there is a property for $15,000, then I can inequivocally guarantee it is either a tear down or has more offers on it than a zebra has stripes!!! Even as a tear down, it is really quesitonable. Maybe they meant for the whole city.  If that is the case, it would still be a tear down in an area most would not choose to live.  I just don't want people to think that this is really even close to the norm!

12:22am • #1
208,277 Points 1 Featured Post Localism Sponsor Outside Blog Hit Router

That is exactly the sort of information that a bargain hunting Canadian is looking for.  Someplace where the weather is warm and the prices are low.

12:23am • #2
FEB
12

Hi! If you know any investor that want to purchase here in AZ, cash flow deal from $65k-75K-85k, rent from $1250/m to $1350 depend on Bedroom.(cash) Completely remodel, passed inspection w/rental inplace.

Or they can buy as-is, too. from $30,000-50,000.

You will have the refer fee $5,000/each.

Please call 602-402-3072 if you need more details.

Trina Huynh
5:49pm • #3
FEB
19

While I do agree that you can find heavily discounted deals in these types of markets today, I don't agree that these are the best markets to be investing in. Investors are far better off going to STABLE markets like Texas, North Carolina, etc...  I purchased some duplexes in an exceptional neighborhood that backs up to multi-million $ homes in Mansfield, TX (in the Dallas area), and I don't have to worry about whether or not they will still be worth what I bought them for in 5 years.  I think the builder had a couple more subdivisions that he was starting soon.  You can check them out at www.brandnewduplexes.com

Investor
2:17pm • #4
MAR
01

In my opinion if I were investing right now I would be looking at #3 and #4 on the list the reasons are very simple because if you can get into in a nice home in vegas and get it for a good price its the best way to go, Vegas will rise again because it is a place that is business friendly so as soon as there is a turn around in the economy alot of businesses will be moving from California to Nevada. 

Southern California property is always great but Riverside and San Bernardino are not something that I would jump into without some research because you have to know the neighborhoods and cities because they are not all created equal.  That is part of the reason for the big decline in these areas.  What you have to understand is that you will have a great looking housing developmemnt and just outside the wall of the development is an auto dismantler or a state prison, I kid you not.  At the height of of the housing boom they were planting houses anywhere and the buyers and builders didn't really think twice because about it.  

 

 

1:35am • #5

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