Which city rental market is better? Tampa, Charlotte, Columbus

[Judy Wang]

Hi BP community,

Disclaimer: I know each city has its advantages and disadvantages. I am comparing them solely based on their rental return and potential appreciation. I love all three cities. ><

I plan to purchase an investment property, a duplex or SFH. The house price is $200k-$300k. I am looking for cap rate exceeds 6%. Since I am in CA, local property management fee has been considered.

After talking with several realtors, I have narrowed down my choices in the following 3 cities:

1, Tampa, FL

2, Charlotte, NC

3, Columbus, OH

For 1, FL is a hot market right now and I believe that this hot trend will continue. Tampa is always in the list of investors. Given the numbers my realtor provided, duplex is over 300k but cap rate is only 5.5-6%. My concern is that the price has already been high but the rent hasn't increased up accordingly. 

For 2, I just personally feel very interested in. I haven't seen any big boom in Charlotte house market. The cap rate there could exceed 6%, probably 6.5%. However, I am concerned that the city growth potential and how rental market really is there.  

For 3, I know Ohio State is there and this big university can boost a good rental market. The property tax here is highest among the three. The campus nearby area is hard to find good deal. Hasn't ran out a cap rate figure but I am not sure it can reach 6%. 

I have never been to these 3 cities before, so I have no first-hand experience in these cities. Given the pandemic, I probably couldn't fly there to do on site visit (I know this is the best way to know a city). Wanna hear more local people's voice and have more straightforward view of the cities' development. 

Any opinion is welcome!

Thanks

Judy

[Remington Lyman]

Originally posted by @Judy Wang:

Hi BP community,

Disclaimer: I know each city has its advantages and disadvantages. I am comparing them solely based on their rental return and potential appreciation. I love all three cities. ><

I plan to purchase an investment property, a duplex or SFH. The house price is $200k-$300k. I am looking for cap rate exceeds 6%. Since I am in CA, local property management fee has been considered.

After talking with several realtors, I have narrowed down my choices in the following 3 cities:

1, Tampa, FL

2, Charlotte, NC

3, Columbus, OH

For 1, FL is a hot market right now and I believe that this hot trend will continue. Tampa is always in the list of investors. Given the numbers my realtor provided, duplex is over 300k but cap rate is only 5.5-6%. My concern is that the price has already been high but the rent hasn't increased up accordingly. 

For 2, I just personally feel very interested in. I haven't seen any big boom in Charlotte house market. The cap rate there could exceed 6%, probably 6.5%. However, I am concerned that the city growth potential and how rental market really is there.  

For 3, I know Ohio State is there and this big university can boost a good rental market. The property tax here is highest among the three. The campus nearby area is hard to find good deal. Hasn't ran out a cap rate figure but I am not sure it can reach 6%. 

I have never been to these 3 cities before, so I have no first-hand experience in these cities. Given the pandemic, I probably couldn't fly there to do on site visit (I know this is the best way to know a city). Wanna hear more local people's voice and have more straightforward view of the cities' development. 

Any opinion is welcome!

Thanks

Judy

 I would personally pick Columbus, Ohio over the other two