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