When people retire, protecting what they have becomes more important than ever. Many of the Sun Belt states have very favorable laws with regards to Homestead protection of your principal residence and other assets.
Retirees nowadays are a different breed than retirees of the past. It is not uncommon to see retirees starting a second career, even forming startups. All this additional economic activity should bode well for the economies of the new host states in the Sun Belt.
Even for those who simply retire and prefer not to work at all, their mere presence will create more jobs in sectors catering to their needs, from health care personnel, to cleaners, helpers, vendors, assistants etc.
Many of the Sun Belt states are also probusiness states, with a lower regulatory load and a hospitable corporate environment, which can attract companies from other, more regulated and taxed states( like New York and California, for example), to pick up and leave for the friendlier business environments of many of the states in the Sun Belt.
The cost of living is much more affordable in many Sun Belt states as compared to states like New York, California and others.
These last two points are also likely to attract the younger work force to these states, both for the lower cost of living and for the evergrowing jobs available as companies move in.
Within the large metropolitan area located in a Sun
Belt state, it is advisable to buy in good areas. While this seems like an obvious thing to say, many investors follow pure“ cash flow on paper” projections, which lead them to buy in bad, even crimeridden areas. The numbers on papers for cheaper homes in a bad area of town will usually look far superior to the actual cash flow numbers of quality homes in quality locations. Investors who fall victim to the“ cash flow on paper” mentality, may end up buying in bad areas, which could beget tenant problems, inferior price appreciation over time, evictions and turnover costs. The REAL cash flow over a long period of time may actually be superior for the good home located in a good area. Buying in good areas increases( while not guaranteeing) the probability of a smoother experience, better behaved tenants, and potentially longer tenancies.
Where to invest in Single Family Rental Homes in the United States