No one can deny that investing in real estate is a great way to make money.
One of the best things about the industry is that it offers different types of properties that you can capitalize on. One of these property types is condominiums (condos for short). Renting out a condo is a viable investment choice for property investors living in economically healthy housing markets who are interested in investing in real estate. How come? And where exactly are the best places to buy a condo for investment in the US? Keep reading to find out.
3 Reasons to Consider Investing in a Condo in 2025
Investing in a condo in the US in 2025 offers several key advantages. Here are three compelling reasons to consider:
1. Buying a Condo Costs Less
The last thing you want as a real estate investor is to invest in a property that you can’t afford. This will increase the risks of facing foreclosure or short-sale and basically losing your investment property. If you’re a beginner investor and you don’t have a big budget, finding an affordable property is essential. This is why buying a condo real estate investment is a good option for you, as condos generally cost less than single-family homes and townhouses in most housing markets across the country. For instance, the average sale price of a condo is about $365,000 as of Q3 2024, while a detached home costs about $428,500.
2. Owning a Condo Can Be a Passive Investment
While investing in a rental property is definitely hard work, owning a condo real estate investment is easier than owning other types of properties. This is because condos come with a wide range of amenities and services that take away a lot of the responsibilities that property investors have to tackle. If you own a condo, you don’t have to worry about cleaning the pool, mowing the lawn, improving the curb appeal, etc.
As a result, renting out a condo is a great passive income investment strategy! What’s best is that, because a condo comes with more amenities, a real estate investor can charge higher for rent than for another property in the same location. This means that investing in a condo can yield higher rental income and total return on investment. That’s, of course, if you’re investing in the best places to buy a condo for investment.
You can start searching for and analyzing condos for sale on Mashvisor. Click here to get started.
3. Condos Attract High Demand
Condos are located in the center of hot real estate markets, while single-family houses are typically found in the suburbs. Those who rent a condo do so because they want to enjoy the many amenities that condos offer at a reasonable price. This higher demand means higher rents, a positive cash flow, and higher profits for property investors.
The 15 Best Places to Buy a Condo for Investment
These are the main reasons that make buying a condo for investment a smart decision. As you can tell, location is key for the success of a condo real estate investment. So, if you’re wondering where to buy a condo, here’s a list of the 15 best places to buy a condo for investment in terms of cash on cash return according to Mashvisor’s Rental Property Calculator.
Note: All of the data below are based on Mashvisor’s predictive analytics and projections, except for Walk Scores, which are provided by walkscore.com.
1. Twentynine Palms, CA
- Best Investment Strategy: Short term rental
- Median Property Price: $429,811
- Average Price per Square Foot: $349
- Days on Market: 98
- Number of Short Term Rental Comps: 413
- Monthly Short Term Rental Income: $4,076
- Short Term Rental Cash on Cash Return: 7.68%
- Short Term Rental Cap Rate: 7.80%
- Short Term Rental Daily Rate: $192
- Short Term Rental Occupancy Rate: 71%
- Walk Score: 56
2. Palm Springs, FL
- Best Investment Strategy: Short term rental
- Median Property Price: $277,048
- Average Price per Square Foot: $238
- Days on Market: 104
- Number of Short Term Rental Comps: 1,073
- Monthly Short Term Rental Income: $3,429
- Short Term Rental Cash on Cash Return: 6.95%
- Short Term Rental Cap Rate: 7.14%
- Short Term Rental Daily Rate: $193
- Short Term Rental Occupancy Rate: 64%
- Walk Score: 29
3. Florida City, FL
- Best Investment Strategy: Short term rental
- Median Property Price: $496,891
- Average Price per Square Foot: $269
- Days on Market: 118
- Number of Short Term Rental Comps: 100
- Monthly Short Term Rental Income: $5,515
- Short Term Rental Cash on Cash Return: 6.91%
- Short Term Rental Cap Rate: 6.98%
- Short Term Rental Daily Rate: $162
- Short Term Rental Occupancy Rate: 63%
- Walk Score: 67
4. Montgomery, AL
- Best Investment Strategy: Long term rental
- Median Property Price: $276,560
- Average Price per Square Foot: $139
- Days on Market: 19
- Number of Long Term Rental Comps: 429
- Monthly Long Term Rental Income: $2,107
- Long Term Rental Cash on Cash Return: 6.67%
- Long Term Rental Cap Rate: 6.82%
- Price to Rent Ratio: 11
- Walk Score: 56
5. Hampton, VA
- Best Investment Strategy: Short term rental
- Median Property Price: $338,619
- Average Price per Square Foot: $197
- Days on Market: 56
- Number of Short Term Rental Comps: 252
- Monthly Short Term Rental Income: $3,359
- Short Term Rental Cash on Cash Return: 6.65%
- Short Term Rental Cap Rate: 6.77%
- Short Term Rental Daily Rate: $200
- Short Term Rental Occupancy Rate: 58%
- Walk Score: 38
6. Frankfort, KY
- Best Investment Strategy: Short term rental
- Median Property Price: $403,579
- Average Price per Square Foot: $177
- Days on Market: 77
- Number of Short Term Rental Comps: 135
- Monthly Short Term Rental Income: $3,730
- Short Term Rental Cash on Cash Return: 6.60%
- Short Term Rental Cap Rate: 6.71%
- Short Term Rental Daily Rate: $171
- Short Term Rental Occupancy Rate: 57%
- Walk Score: 0
7. Joplin, MO
- Best Investment Strategy: Short term rental
- Median Property Price: $392,653
- Average Price per Square Foot: $164
- Days on Market: 67
- Number of Short Term Rental Comps: 105
- Monthly Short Term Rental Income: $2,945
- Short Term Rental Cash on Cash Return: 6.49%
- Short Term Rental Cap Rate: 6.64%
- Short Term Rental Daily Rate: $105
- Short Term Rental Occupancy Rate: 66%
- Walk Score: 76
8. Columbus, GA
- Best Investment Strategy: Short term rental
- Median Property Price: $362,371
- Average Price per Square Foot: $155
- Days on Market: 122
- Number of Short Term Rental Comps: 301
- Monthly Short Term Rental Income: $2,727
- Short Term Rental Cash on Cash Return: 6.44%
- Short Term Rental Cap Rate: 6.59%
- Short Term Rental Daily Rate: $139
- Short Term Rental Occupancy Rate: 64%
- Walk Score: 36
9. Lauderdale Lakes, FL
- Best Investment Strategy: Short term rental
- Median Property Price: $196,335
- Average Price per Square Foot: $188
- Days on Market: 105
- Number of Short Term Rental Comps: 1,188
- Monthly Short Term Rental Income: $2,835
- Short Term Rental Cash on Cash Return: 6.42%
- Short Term Rental Cap Rate: 6.62%
- Short Term Rental Daily Rate: $194
- Short Term Rental Occupancy Rate: 60%
- Walk Score: 61
10. Portland, TX
- Best Investment Strategy: Short term rental
- Median Property Price: $354,026
- Average Price per Square Foot: $166
- Days on Market: 106
- Number of Short Term Rental Comps: 165
- Monthly Short Term Rental Income: $3,514
- Short Term Rental Cash on Cash Return: 6.30%
- Short Term Rental Cap Rate: 6.41%
- Short Term Rental Daily Rate: $122
- Short Term Rental Occupancy Rate: 51%
- Walk Score: 54
11. Warner Robins, GA
- Best Investment Strategy: Long term rental
- Median Property Price: $353,891
- Average Price per Square Foot: $144
- Days on Market: 73
- Number of Long Term Rental Comps: 262
- Monthly Long Term Rental Income: $2,270
- Long Term Rental Cash on Cash Return: 6.22%
- Long Term Rental Cap Rate: 6.34%
- Price to Rent Ratio: 13
- Walk Score: 48
12. Lauderhill, FL
- Best Investment Strategy: Short term rental
- Median Property Price: $231,457
- Average Price per Square Foot: $186
- Days on Market: 100
- Number of Short Term Rental Comps: 1,118
- Monthly Short Term Rental Income: $3,258
- Short Term Rental Cash on Cash Return: 6.18%
- Short Term Rental Cap Rate: 6.36%
- Short Term Rental Daily Rate: $206
- Short Term Rental Occupancy Rate: 65%
- Walk Score: 39
13. Laredo, TX
- Best Investment Strategy: Short term rental
- Median Property Price: $388,704
- Average Price per Square Foot: $182
- Days on Market: 75
- Number of Short Term Rental Comps: 161
- Monthly Short Term Rental Income: $3,316
- Short Term Rental Cash on Cash Return: 6.15%
- Short Term Rental Cap Rate: 6.27%
- Short Term Rental Daily Rate: $130
- Short Term Rental Occupancy Rate: 58%
- Walk Score: 60
14. Inverness, FL
- Best Investment Strategy: Short term rental
- Median Property Price: $323,178
- Average Price per Square Foot: $201
- Days on Market: 112
- Number of Short Term Rental Comps: 127
- Monthly Short Term Rental Income: $3,030
- Short Term Rental Cash on Cash Return: 6.01%
- Short Term Rental Cap Rate: 6.13%
- Short Term Rental Daily Rate: $163
- Short Term Rental Occupancy Rate: 58%
- Walk Score: 31
15. Sun City Center, FL
- Best Investment Strategy: Short term rental
- Median Property Price: $323,321
- Average Price per Square Foot: $195
- Days on Market: 106
- Number of Short Term Rental Comps: 107
- Monthly Short Term Rental Income: $3,372
- Short Term Rental Cash on Cash Return: 6.01%
- Short Term Rental Cap Rate: 6.12%
- Short Term Rental Daily Rate: $246
- Short Term Rental Occupancy Rate: 56%
- Walk Score: 29
Start using Mashvisor now to get access to our rental property calculator and other tools to help you find the best condo for investment anywhere in the US housing market.
To Sum Up
Owning and renting out a condo is, indeed, a profitable real estate investment opportunity. As data from Mashvisor shows, property investors can find affordable condos that achieve a high return on investment in terms of cash on cash return. Of course, location matters when it comes to investing in a condo. So, consider the above-mentioned best places to buy a condo for investment in the US and use our tools to analyze and compare properties to find the one that best meets your criteria and goals as a real estate investor.
