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pril 19, 2025

    2 min Read

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    For many Americans, real estate investing means buying a home or second property for personal use. However, some take it further by investing in properties to generate income and build wealth.

    When it comes to real estate investing, location is key. While large coastal cities like Boston, New York, and Los Angeles get attention from deep-pocketed investors, they may not be the best choice for those seeking affordability.

    A recent study by Badeloft USA identified the most underrated U.S. cities for real estate investments based on safety, affordability, and market trends. The analysis considered property prices per square foot in 2020 and 2024, as well as average home prices to provide a comprehensive view of the market.

    The top 10 underrated cities for real estate investments are:

    1. Jacksonville, Florida (Safety Index Score: 43.6) - $290,862.10 (68.59% price appreciation)

    2. Tampa, Florida (53.8) - $375,827.30 (55.74%)

    3. Austin, Texas (57.4) - $92,802.00 (55.35%)

    4. Orlando, Florida (50.4) - $147,500.30 (46.66%)

    5. Dallas, Texas (48.6) - $307,400.00 (46.22%)

    6. Tucson, Arizona (45.4) - $329,321.80 (40.97%)

    7. San Antonio, Texas (51.9) - $253,099.20 (40.13%)

    8. Irvine, California (69.0) - $95,230.10 (34.86%)

    9. Columbus, Ohio (50.4) - $109,427.40 (34.39%)

    10. Kansas City, Missouri (41.9) - $221,922.70 (33.39%)

    If you're new to real estate investing, consider these five tips from Quanique Johnson, founder and CEO of LQ Logistics LLC:

    1. Research the market to understand local property values and trends.

    2. Start small with single-family homes or duplexes to gain experience.

    3. Focus on properties that generate enough cash flow for a profit after expenses.

    4. Diversify your portfolio by investing in different types of properties and locations.

    5. Leverage financing wisely, seeking favorable loan terms and managing debt-to-income ratio.

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