named Dallas-Fort Worth as the hottest real estate investment market for 2010.
After analyzing more than 10,000 real estate markets to identify stable, growth-oriented for investors, San Francisco-based FinestExpert.com formed its first top-20 hottest real estate investment market list for 2010.
Analysts looked at more than low home prices and focused on areas with strong employment, rental markets and growth as offset by foreclosures to determine which markets had the best opportunities. If investors only looked at bargain prices, most would flock to into the “rust-belt” markets such as Cleveland and Detroit.
According to the rankings, the top 20 markets are considered good “buy-and-hold” real estate investment markets, as opposed to quick “fix-and-flip.” Because of the distinction, the top markets needed properties with positive cash-flow, which includes home prices, hyper-local rents, taxes, insurance and other operating expenses.
On a scale to 1,000, a good cash-flow deal is rated at 850. The top-20 list also documents “discounted properties” or how many listings and the percentage of total listings selling for at least 10% their estimated value.
"Everyone wants a deal, no matter what market they are in. FinestExpert.com tracks property prices and values to compute an effective ‘discount’ for every property, thus allowing users to easily find the golden nuggets,” said Robert Boyer, co-founder of FinestExperts.com.
The top-20 markets are:
- 1. Dallas-Fort Worth-Arlington,TX: 4,206 discounted properties, 773 cashflow positive
- 2. Houston, TX: 5,563 discounted properties, 1,500+ cashflow positive
- 3. Tulsa, OK: 905 discounted properties, 211 cashflow positive
- 4. San Antonio, TX: 3,547 discounted properties, 496 cashflow positive
- 5. Salt Lake City, UT: 1,137 discounted properties, 22 cashflow positive
- 6. Phoenix, AZ: 8,426 discounted properties, 2,000+ cashflow positive
- 7. Indianapolis-Carmel, IN: 1,257 discounted properties, 299 cashflow positive
- 8. Denver-Aurora, CO: 6,449 discounted properties, 562 cashflow positive
- 9. Oklahoma City, OK: 1,085 discounted properties, 212 cashflow positive
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- 10. Charlotte-Gastonia-Concord, NC-SC: 3,348 discounted properties, 296 cashflow positive