Are you looking to diversify your investment portfolio and capitalize on the ever-growing real estate market? Look no further! We have gathered information on the top 10 places to buy real estate investment properties in 2023. As the real estate market continues to boom, it's crucial to know where to invest to ensure the highest possible returns. In this article, we will discuss why real estate investment properties are a smart move in 2023 and reveal the top 10 places that offer the best opportunities for real estate investors.

Why are rental properties still a good investment in 2023?

Real estate investment properties have proven robust and reliable investment vehicles. They offer numerous advantages like appreciating, generating passive income through rental income, and providing potential tax benefits. In 2023, the real estate market is expected to remain strong, thanks to the growing economy, low mortgage rates, and increasing demand for rental properties. As a result, real estate investments continue to be a wise choice for savvy investors, especially in the right markets.

Top 10 places to buy real estate investment properties in 2023

As a real estate investor, you want to ensure your rental property is in a city with a vibrant culture and housing prices that offer optimal returns. Each city features different historical attractions, recreation activities, and entertainment options that would draw tenants looking to rent out your property. To ensure you make the best investment decisions, this section provides an overview of the ten best cities with potential profit margins and popularity among potential tenants.

1. Houston-The Woodlands-Sugar Land, TX

• Median monthly rent: $1,410

Houston's booming economy and growing population make it one of the top places to invest in real estate in 2023. The city has experienced significant job growth, driving rental demand and increasing property values. In addition, the low cost of living and growing energy sector contribute to its investment potential.

Houston, Texas, is full of fun activities for residents to enjoy. There is something for everyone from the Kemah Boardwalk to Space Center Houston.

• Catch a game at Minute Maid Park
• Take in some history by visiting the USS Texas Battleship Memorial
• Immerse yourself in culture with an array of world-class exhibits and theatre performances from the Museum of Fine Arts
• Attend a show at one of the vibrant live music venues like The House of Blues or White Oak Music Hall.

Explore the many parks and trails for outdoor enthusiasts, such as Terry Hershey Park or Buffalo Bayou. Houston has it all, no matter what kind of activity you seek.

2. Oklahoma City, OK

• Median monthly rent: $1,056

Oklahoma City offers affordable investment properties with the potential for high returns. The city has experienced rapid economic growth and a rise in population, leading to increasing rental demand. Additionally, the city boasts a low cost of living and a diversified economic base, making it an attractive option for investors.

Oklahoma City, OK, is one of the most popular destinations in the South. With over 500 attractions for visitors to explore and an array of exciting points of view, there are plenty of activities for leisure.

• Explore the grounds of the famous Myriad Botanical Gardens.
• Enjoy the beautiful exhibits of art at the Oklahoma City Museum of Art.
• The National Cowboy & Western Heritage Museum is a must-see for those interested in the history of the West and its pioneer heritage.

Those seeking something more intense will love White Water Bay's wave pool and thrilling water slides.

3. Phoenix-Mesa-Chandler, AZ

• Median monthly rent: $1,572

Phoenix continues to be an investor favorite due to its growing population, strong job market, and warm climate. The city offers a variety of investment opportunities, from single-family homes to multi-family properties, with a potential for high appreciation rates and rental income.

Phoenix, AZ, is a bustling city full of attractions and activities.

• Saguaro National Park features gorgeous natural landscapes and many different types of wildlife, making it perfect for an outdoor adventure.
• There are several renowned museums like the Heard Museum or Desert Botanical Garden.
• For sports enthusiasts, catch a game of the famous Arizona Diamondbacks at Chase Field.

With so much on offer in one city, Phoenix will satisfy everyone looking for incredible vacations and unique experiences.

4. Memphis, TN

• Median monthly rent: $1,077

Memphis is an up-and-coming real estate hot spot, offering affordable property prices, low unemployment, and a growing tourism industry. The city's strategic location and diverse economy have driven demand for rental properties, making Memphis an excellent place for long-term investments.

Memphis is an exciting destination full of things to do and see.

• World-famous music studios at Sun Studios and Stax Recording
• A 26-block entertainment area known as Beale Street with its stellar bars, clubs, and restaurants – live music is a defining characteristic of Memphis.
• Visit the former home of music legend Elvis Presley, Graceland.
• Art lovers can take in collections from antiquity to modernism at the city's premiere art museum – the Memphis Brooks Museum of Art.

For nature enthusiasts, Mud Island Park features an indoor river walkway exhibit that pays homage to Memphis's location on the path of The Great River Road.

5. Tulsa, OK

• Median monthly rent: $1,028

Tulsa is a hidden gem when it comes to real estate investments. The city's low cost of living, stable job market, and growing population make it an ideal place to invest in rental properties. Plus, property values in Tulsa are expected to rise, providing investors with substantial appreciation potential.

Tulsa, Oklahoma, is renowned for its art deco architecture and vibrant downtown. Across the city, visitors can explore many attractions like:

• The iconic Golden Driller of the Tulsa State Fair
• The Philbrook Museum combines modern and historical works of art
• The Tulsa Air and Space Museum provides an interactive look into aeronautics history.
• The Tulsa Raceway Park, where they can watch or participate in drag racing events.

There's also LaFortune Park, an outdoor retreat brimming with gardens, trails, and paths.

6. Jacksonville, FL

• Median monthly rent: $1,418

Jacksonville's coastal location, growing job market, and affordable investment properties make it an attractive option for real estate investors. The city is experiencing rapid population growth and high rental demand, providing an excellent opportunity for investors to earn rental income and benefit from property appreciation.

Jacksonville, Florida, has a lot to offer in terms of attractions. From beautiful beaches, state parks, and nature trails to delicious restaurants, iconic landmarks, and historical sites, there is something for everyone.

• Take an airboat tour down the St. Johns River to explore the stunning natural beauty
• Immerse in local culture with a visit to the Cummer Museum of Art & Gardens
• Enjoy fishing at Little Talbot Island State Park
• Experience a variety of wildlife while visiting the Catty Shack Ranch Wildlife Sanctuary.

7. Atlanta-Sandy Springs-Alpharetta, GA

• Median monthly rent: $1,506

Thanks to its thriving economy and growing population, Atlanta has long been a popular choice for real estate investors. The city's diverse economy and strong job market drive rental demand and property values, making Atlanta a solid choice for long-term investments.

In Atlanta, Georgia, the World of Coca-Cola is a must-see to learn about the history behind the beloved beverage through interactive videos and computer animations. Other attractions include:

• The Georgia Aquarium allows visitors to come up close to majestic manta rays, beluga whales, penguins, and more.
• Atlanta's Stone Mountain Park features 3,200 acres of natural beauty from its outdoor gardens, trails, lakes, and playgrounds.
• The Summit Skyride or enjoy one of the spectacular laser shows at night.

8. Birmingham-Hoover, AL

• Median monthly rent: $1,100

Birmingham offers an attractive mix of affordability, economic growth, and investment potential. The city's growing healthcare industry and low property prices create a unique opportunity for real estate investors to buy rental properties with high appreciation potential.

Birmingham, Alabama, is a wonderful city for those looking to experience the best of the South. Some of the attractions include:

• The Birmingham Zoo, where you can observe exotic wildlife
• The famous Sloss Furnaces National Historic Landmark and Museum for a peek into the history of iron production in Alabama
• The Barber Vintage Motorsports Museum houses an impressive collection of classic cars, motorcycles, and race memorabilia.

Adventure seekers will love Merit Mountain Zip Lines and Adventure Park, with eleven exhilarating zip lines set amongst breathtaking mountain views.

9. Orlando-Kissimmee-Sanford, FL

• Median monthly rent: $1,678

Orlando remains a top choice for real estate investors, owing to its thriving tourism industry, growing population, and affordable investment properties. The city's strong rental demand, driven by many tourists and the growing local market, makes it an ideal destination for long-term investments.

Orlando, Florida, is a vibrant destination for tourists from all over the world. There's something for everyone to enjoy in this popular city.

• Theme parks such as Walt Disney World and Universal Orlando Resort
• Outdoor activities like airboat rides on Lake Toho
• Shopping enthusiasts will find their paradise at Mall at Millenia
• Nature lovers can explore many conservation areas like Big Tree Park
• Learn more about Florida's wildlife during the Gatorland tour.

Everyone is sure to find an activity that suits their interests in Orlando.

10. Tampa-St. Petersburg-Clearwater, FL

• Median monthly rent: $1,523

Tampa is another great option for real estate investors in 2023. The city's growing population, diverse economy, and affordable property prices make it a lucrative place to invest in rental properties. In addition, Tampa's coastal location and increasing rental demand make it a top contender for real estate investments.

Tampa, Florida, is an exciting city with plenty of attractions to offer, including:

• The Museum of Science and Industry
• Award-winning restaurants
• Outdoor activities like Busch Gardens, landscaped gardens, or kayaking on the Hillsborough river
• Free entertainment at Curtis Hixon Park or Tampa Riverwalk.
• Sports fans can enjoy the home base of four major league teams; the Bucs, Rays, Lightning, and Rowdies!

Stessa.com has an article offering more in-depth statistics worth looking at before you take the plunge and opt for a rental property in any of these cities.

Investing in real estate continues to be an excellent opportunity for diversifying your investment portfolio and generating long-term wealth. With our list of the top ten places to buy real estate investment properties in 2023, you can identify the most promising markets to invest your money in and maximize your returns.

By carefully considering population growth, job market, rental demand, and affordability, you can make informed decisions on where to buy investment properties with the potential for solid appreciation and rental income. So, don't wait any longer – start researching these top markets and be prepared to move in 2023!