In this edition of The TurboTenant report, we will be focusing on the best places to buy an investment property in Minnesota. Three towns made our list: Duluth, Richfield, and Saint Cloud. We curated data from studies on the best places to buy an investment property, median sale prices, and proprietary TurboTenant data. The TurboTenant Data includes stats on the average number of leads a rental property received, as well as the average number of days on the market. These two points will help an investor determine the strength of the rental market, as well as estimating potential vacancy rates.
Minnesota is known as the Land of 10,000 Lakes and is the twelfth largest state in the United States bordered by Canada to the North and Iowa on the South. Whether you are a lover of boating, fishing, biking, breweries, or shopping at the Mall of America, Minnesota is a great place to visit, live, work, and play. Minnesota is known for its vast bodies of water including more than 69,200 miles of rivers and streams, 11,842 lakes, and 60 miles of the Mississippi River. Historically, Minnesota’s economy was based off of agriculture and is still one of the largest producers of sugar beets, sweet corn, and turkeys – other important industries to Minnesota are logging, mining, and technology. Minnesota also has a diverse arts culture and history from the pioneer ancestry and Native American heritage that is still prevalent today. It’s also extremely affordable where median sale prices are low and the demand for rentals is high.
Let’s find out the best places to buy rental investment property in The Gopher State.
Just 65 miles northwest of the Twin Cities, St. Cloud has the largest population in Minnesota’s central region. Home to St. Cloud State University, the third-largest public university in Minnesota, it’s a place for students, families, and everyone else. From the Munsinger Clemens Gardens along the Mississippi to Quarry Park to top-rated restaurants, St. Cloud is a booming town with positive growth numbers. Employment is strong at 2% with industries such as manufacturing and agriculture. Rent is at a low $945 where the median sale price is only $170k! Property investors will enjoy a solid three weeks on the rental market and around 38 leads per property to find the best one for your properties.
Duluth is Minnesota’s third largest city and stretches along Lake Superior with a variety of neighborhoods built on gorgeous lands and steep hills. Located on the north shore of Lake Superior, Duluth is a thriving city that is a popular tourist destination as well as a great place for renters and property investors. Its economy is reliant on health care, higher education, retail, tourism, and also serves a major transportation center with access to the Great Lakes Waterway and the Saint Lawrence Seaway. With a hopping nightlife, great hiking chairs, and beautiful views, you don’t want to miss out on what Duluth has to offer. The City on the Hill has positive numbers on all aspects with a great increase in home values at 4.4% and a median sale price of $212k! Landlords see an average of 51 leads per property and only 19 days on the market!
As a suburb of the Minneapolis-Saint Paul Region, Richfield has constantly seen a population boom throughout its history. Its 35,000 residents live within seven miles of neighborhoods, beautiful parks, and highly-rated schools and business. Richfield provides a large urban area while still giving off a small-town atmosphere – its community is unlike any other where there are festivals, picnics, farmers markets, and an arts center. It’s a place for many businesses – including the headquarters of Best Buy. Property investors won’t be disappointed in Richfield as landlords can fill their properties in an astonishing four days with 34 leads to choose from. Richfield’s is clearly rich with great rentals which is why it’s our #1 town in Minnesota.
Once you’ve landed the perfect investment property in a good location, TurboTenant can help take your landlording into the digital world by streamlining the rental process with easy and free online rental applications as well as thorough tenant screening so you can find the best renter for your property.
Use our handy map tool to explore top rental markets throughout the U.S.
The TurboTenant Report analyzes data from active listings across all 50 states, as well as third party real estate, population and employment growth data. Our goal with the TurboReport is to empower seasoned and novice investors to make wise purchasing decisions when purchasing a rental investment property. For more information or custom data requests, please contact [email protected].
In order to determine the best cities to invest in each state, we curated data from a number of reputable sources as well as using TurboTenant proprietary data. Our main city selections were taken from a study that evaluated four main factors for each city: employment growth, population growth, increase in home values and rental yield. We combined that with TurboTenant data on the average rent price, the number of rental leads per property, as well as the average number of days the rental stays on the market.
We also included an honorable mention where applicable. They are pulled from this study on the best places to invest in every state. These were determined using Zillow’s Buyer-Seller Index and Zillow Home Value Forecast, and AreaVibes’ Livability Score. Other methods for determining honorable mentions include using TurboTenant proprietary data to determine which cities return the best rental investment R.O.I. using data points including days on market, the number of leads per property, and average rent price.
DISCLAIMER: TurboTenant, Inc does not provide legal advice. This material has been prepared for informational purposes only. All users are advised to check all applicable local, state and federal laws and consult legal counsel should questions arise.
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