Real estate has long been a popular investment choice, providing investors with opportunities for steady income and potential long-term appreciation. However, with the diverse real estate market across the United States, it’s essential to identify the states that offer the most promising investment prospects. In this article, we will explore some of the best states to invest in real estate in 2023, considering factors such as job growth, population growth, affordability, market stability, and investment potential.

1. Texas

Texas continues to be a top contender for real estate investments. With a thriving economy and a growing population, the demand for housing is consistently high. Cities like Austin, Dallas, and Houston are experiencing rapid growth, attracting businesses and a young workforce. Texas also boasts a relatively affordable housing market compared to many other states, making it attractive for both investors and potential tenants. Additionally, the absence of state income tax further enhances the investment potential in Texas.

2. Florida

Florida’s real estate market has been booming for years, and it shows no signs of slowing down. The state’s warm climate, attractive lifestyle, and favorable tax environment continue to draw retirees, tourists, and new residents. Cities like Miami, Orlando, and Tampa offer diverse investment opportunities, ranging from residential properties to vacation rentals. Florida’s strong rental demand and potential for price appreciation make it an enticing choice for real estate investors.

3. Tennessee

Tennessee is gaining recognition as a favorable state for real estate investments. Nashville, in particular, has experienced significant growth in recent years, fueled by a thriving music and entertainment industry. The city’s vibrant job market and cultural appeal have attracted young professionals and families, driving up demand for housing. Additionally, Tennessee offers a relatively low cost of living and a favorable business environment, making it an attractive destination for investors.

4. Colorado

Colorado’s real estate market has been consistently strong, thanks to its picturesque landscapes, outdoor recreational opportunities, and robust economy. Cities like Denver and Colorado Springs have seen steady population growth, driving demand for both residential and rental properties. Colorado’s strong job market, favorable business climate, and proximity to natural attractions make it an appealing choice for real estate investors seeking long-term growth potential.

5. North Carolina

North Carolina has emerged as a promising state for real estate investment. Charlotte, the largest city in the state, offers a vibrant economy, a strong job market, and a growing population. The Research Triangle region, encompassing Raleigh, Durham, and Chapel Hill, is known for its renowned universities and thriving technology sector. The combination of affordable housing, economic stability, and population growth make North Carolina an attractive destination for real estate investors.

While real estate investment opportunities can be found throughout the United States, certain states stand out in terms of their potential for growth, rental demand, affordability, and favorable market conditions. Texas, Florida, Tennessee, Colorado, and North Carolina offer a combination of economic stability, population growth, job opportunities, and investment potential. However, it’s crucial for investors to conduct thorough research, analyze local market conditions, and seek professional advice before making any investment decisions. Real estate investing requires careful consideration and due diligence to maximize returns and mitigate risks. By focusing on states with strong fundamentals and growth prospects, investors can position themselves for success in the dynamic world of real estate investment in 2023 and beyond.

Real estate has long been recognized as a profitable investment avenue, providing both income generation and potential appreciation. However, traditional property ownership may not be suitable for everyone due to various reasons such as high upfront costs, management responsibilities, or a lack of expertise. Fortunately, there are alternative approaches to investing in real estate without buying property directly. In this article, we will delve into two such strategies—real estate arbitrage and wholesaling—and discuss their merits and challenges. Ultimately, we’ll highlight why investing in real estate through property ownership remains a preferred and more accessible option for many investors.

1. Real Estate Arbitrage:

Real estate arbitrage involves capitalizing on price discrepancies or inefficiencies in the real estate market. Investors identify properties that are undervalued or distressed and negotiate favorable purchase terms. They then sell the property quickly for a higher price, pocketing the difference as profit. This strategy requires in-depth knowledge of the local market, understanding of property valuations, and strong negotiation skills.

2. Wholesaling:

Wholesaling is another method that allows investors to profit from real estate transactions without owning the property. The process involves finding distressed properties, securing them under contract with the owner, and then assigning the contract to a buyer for a fee. Wholesaling requires extensive networking, marketing efforts, and the ability to identify motivated sellers and buyers. Success in wholesaling hinges on building relationships with real estate investors, rehabbers, and landlords.

3. Benefits of Real Estate Arbitrage and Wholesaling:

Both real estate arbitrage and wholesaling offer certain advantages. They provide opportunities to generate quick profits, as these strategies often involve short-term transactions. Additionally, they require less upfront capital compared to traditional property ownership, making them accessible to individuals with limited funds. Moreover, real estate arbitrage and wholesaling allow investors to gain valuable experience in the real estate industry and build a network of contacts.

4. Challenges of Real Estate Arbitrage and Wholesaling:

While real estate arbitrage and wholesaling have their merits, they are not without challenges. Both strategies require substantial time and effort. Investors must spend significant hours researching, analyzing properties, negotiating deals, and marketing their services. Additionally, the success of these approaches heavily relies on market conditions and timing, making them relatively riskier than long-term property ownership. Furthermore, building a reputable network and developing effective marketing strategies can be demanding and time-consuming tasks.

5. Investing in Real Estate through Property Ownership:

Investing in real estate through property ownership remains a more traditional and widely preferred method. While it may involve higher upfront costs, property ownership offers several advantages. First and foremost, owning real estate provides a tangible asset that can appreciate over time, potentially generating long-term wealth. Rental income from properties can provide a stable and consistent cash flow, serving as a passive income stream. Moreover, property owners have greater control over their investments, including the ability to improve and add value to their properties.

6. Benefits of Property Ownership:

Property ownership also offers tax advantages, including deductions for mortgage interest, property taxes, and depreciation. Additionally, as a property owner, you have the flexibility to leverage your investment through mortgage financing, enabling you to amplify your returns. Moreover, owning real estate allows you to benefit from potential appreciation in property values and enjoy long-term capital gains.

While real estate arbitrage and wholesaling provide alternative avenues for investment, they come with their own set of challenges and demands. These strategies require extensive knowledge, experience, and a significant time commitment. For many investors, investing in real estate through property ownership remains the preferred option. Property ownership offers greater control, potential long-term appreciation, passive income streams, and various tax advantages. Whether you choose to explore real estate arbitrage and wholesaling or opt for traditional property ownership, it’s essential to align your investment strategy with your financial goals, risk tolerance, and available resources.

In October 2022, Vantage Horizon  added vacation rentals as an asset class on the platform. We have since launched numerous properties in the category. Investors often ask how we select property management partners, prioritize vacation rental markets, source properties, and prepare them for booking. In this article, we will go through the process step by step.

Selecting a Market

When we select a market, we rely heavily on data. Thanks to the incredible growth of platforms like Airbnb and VRBO, available data on vacation rental markets is vaster than ever before. One of our favorite tools for identifying potential markets is Airdna, the leading platform for short-term rental intelligence. 

Airdna tracks over 10 million properties on Airbnb and VRBO in more than 120,000 markets worldwide while also collecting data from over 1 million of its partner properties. Airdna assigns a Market Grade to each market based on rental demand, revenue growth, seasonality, regulation, and investability. 

On our property pages, you will see that we include the Airdna market grades.

After creating a list of top markets, our team then digs deeper. Here are a couple of crucial steps in our process:

• Obtain available revenue figures to see what markets are yielding the highest returns
• Layer in some specs on a market’s long-term potential and sustainability, including driveability and vacation growth.
• Deep-dive on regulations, Non-Owner Occupied permits, and gauge the viability for short-term rentals in the market.
• Ask – Do we have or can we find a good property manager in the market that we could work with long-term?

Finding Our Partner

If all the boxes based on data are checked, the last step in officially deciding to enter a vacation rental market is finding a local property manager to partner with. The primary criterion we use to select a partner includes:

• Meets all insurance, legal, and accounting requirements set by our team
• Vast experience and tenure in the select market + knowledgable of what it takes for a property to outperform
• Has an excellent reputation when it comes to guest responsiveness and property ratings
• Airbnb Superhost + VRBO Premier Partner + Marriot Bonvoy titles are strongly preferred
• Willingness to provide a competitive rate with scale

Finding the right partner may take time, but it’s a crucial part of the process we must get right to enter and grow our presence in a highly-competitive vacation rental market.

Selecting a Property

Once we have our market and partner selected, the last step to officially enter the market is finding our first property. We rely heavily on our partner’s expertise and in-market agents to send us leads on properties with the look, feel, and potential to perform as vacation rentals. Our team also uses various sources, most notably the MLS and pre-market lists, to vet properties based on aesthetic, condition, and revenue potential, which we then confirm with our PM before moving forward.

Once we have our shortlist of properties, our team creates and reviews revenue projections and other crucial factors to ensure the property meets our requirements.

If every box gets checked, we submit an offer for the property.

Preparing the Property

We take all necessary steps to complete the transaction if our offer is accepted. After this, two things happen:

1. Our team, PM, and design partners get together to select a theme that will perform best in the selected market. While we rely heavily on our PM and design partners, our in-house team provides significant input on the extent to which we can ‘level-up’ the property to ensure it outperforms the comps.
2. We list the property on our platform for our investors – you can browse available properties and sign up to receive emails when vacation rentals go live.

When designs are approved, we give the green light to our PM partner to coordinate the renovation. Having boots on the ground is crucial, and we ensure that our partner does everything in accordance with our best practices for the best interest of all parties.

Listing the Property

Once the design process is complete and we review the transformation and apply for permits, if necessary. Our PM partner then lists the property on all major platforms notably Airbnb and VRBO.

 At Vantage Horizon , we are constantly searching for properties that can appreciate in value and provide stable rental income for our investors. However, finding, buying, and funding the properties is only half the battle – we must also be efficient operators to ensure the investment’s long-term success. 

One of the primary ways to determine our success in operations is by looking at our occupancy rate which is calculated in the following way for our long-term rentals:

Occupied Properties / Total Properties*

*Total properties are defined as homes that are 90+ days rent-ready from their initial improvements (long-term rental properties only).

We’re very proud of our current 95.72% occupancy rate (data from 2/28 with 196 properties), so the following article will break down how we’ve achieved it.

The Key: Our Property Management Partners

So, how do we maximize our occupancy rate? We rely heavily on our property management (PM) partners, who are hand-picked by our team based on their experience, track records of excellence, and reputations with property owners and tenants in their regions.

From the start, Vantage Horizon ’s strategy for seeking tenants focuses on signing 2-year leases, achieving optimal rent based on the individual market, and thoroughly vetting resident applicants. All of our PM partners are fully aligned and equipped to execute these goals.

Overview of the Process

After Vantage Horizon  finds and purchases a property, our team and PM partners immediately begin the process of getting the property “list-ready.” These steps include:

• Completing any necessary renovations
• Having the property professionally cleaned
• Painting or touching up finishes, if necessary
• Inspecting flooring and fixtures for repairs
• Upgrading appliances

The Next Step: Finding Tenants

Once the property is list-ready, our PMs take over. The following are some strategies our PMs do to quickly find tenants:

1. Market the property effectively: To attract potential tenants, PMs market the property in a way that showcases its unique features and benefits. This can be done through online listings, open houses, and other marketing materials.

1. Provide excellent customer service: Good customer service can be a major factor in attracting and retaining tenants. Our PMs are responsive to all inquiries within 48 hours.
2. Screen tenants: Our PMs pre-screen tenants for tours of properties and quickly begin the application process if they are interested in moving forward.

Retaining Residents

Another way we aim to maximize occupancy rates over the long term is by retaining residents. Retaining residents is essential for any property manager as it ensures stability in rental income and reduces the cost and time associated with finding new tenants. The following are some effective strategies PMs implement to retain residents:

1. Excellent Communication: Open and regular communication with residents is key to building a good relationship and addressing any concerns they may have. Our PMs should be easily accessible and responsive to inquiries and complaints.
2. Speedy Maintenance & Repairs: Keeping the property well-maintained and addressing any repair needs promptly is crucial. A well-maintained property not only keeps residents happy but also adds value to the property and reduces the risk of costly repairs down the line.
3. Reviewing Rent: Offering appropriate rental rates is a significant factor in retaining residents. Our PMs review rental rates regularly to ensure they align with market trends and meet Vantage Horizon ’s requirements.
4. Flexibility: Offering flexible lease options, such as the ability to renew early, can make residents feel more secure in their living arrangements and encourage them to stay.

Challenges That Can Affect Occupancy Rate

While we are confident in our process and partners, there’s always the possibility that a house sits vacant for longer than anticipated. Here are three factors that could cause a property to sit vacant after being deemed “list-ready”:

1. Economic Conditions: Economic conditions, such as unemployment rates, can impact the vacancy rate of a rental property. In times of economic hardship, people may be less likely to rent a property.
2. Seasonality: Single-family rental properties are highly seasonal. New lease-ups typically drop off sharply in mid-September and stay low through the first quarter of the following year.
3. Competition: There may be a large number of available rental properties in the area, making it difficult for our property to stand out and attract tenants.

We can also run into the situation where a house sits vacant after being occupied by a resident; here are some factors that could play a role in this situation:

• Evictions: There are many situations where a resident could decide to stop paying rent or violate lease terms, resulting in the eviction process.
• Tenant Turnover: High tenant turnover can lead to extended vacancy periods for a rental property. Properties with a history of high tenant turnover may be viewed as less attractive to potential tenants.

While many factors can lead to vacancies at our properties, we actively manage everything within our control, such as price, condition, and even location, to an extent. 

To ensure we’re effectively administering properties that need additional help securing tenants, here are some things we do to address vacant properties:

• Our team meets with our PMs weekly
• Our team reviews property listings internally weekly
• Our pricing team reviews comparable properties, demand seasonality for the market, any opportunity for incentives, potential price drops, and potential improvements to help with leasing the property out more quickly.

However, it’s important to note that cutting the price to lease a property is not as simple of a decision as it sounds since it drastically impacts the long-term return potential of a property; this is because a price adjustment can lead to an inability to raise the rent back to the market norm at the end of the lease.

Closing Thoughts

Occupancy rate is a crucial metric in real estate investing, so you will see this tracked in Vantage Horizon ’s quarterly updates. Vantage Horizon  and our PM partners are focused on maximizing our occupancy rate for both existing and future properties to ensure regular returns that allow our investors to build wealth over the long term.

Dealing with unlawful occupants in rental properties is a challenging and time-consuming task that every property manager and landlord may have to deal with at some point in time. Whether it’s a squatter who has unlawfully settled in a property or a resident who has violated the lease terms, these scenarios can happen even with preventative measures in place. 

In this post, we will explore the definitions of squatter and resident eviction, highlight preventive measures Vantage Horizon  has implemented to protect investors, and outline ways to reduce your exposure to adverse outcomes from an eviction process.

Finding the Right Property Management Partners

Maintaining a high occupancy rate and maximizing returns for investors starts with finding the right property management partner. Vantage Horizon  works with experienced third-party property managers to operate in each market, and these professionals have the expertise and knowledge to handle all aspects of property management, from tenant screening and lease agreements to maintenance and repairs. 

In the case of an unlawful occupant or lease violation for non-payment, Vantage Horizon  works closely with these partners to ensure they execute the proper steps to resolve the situation per our established playbook.  

Preventative Measures

Before a problem can even present itself, property managers proactively implement various measures to prevent unauthorized individuals from occupying properties, such as installing digital locks with one-time access codes to ensure only authorized individuals can enter the premises. Managers also perform regular wellness checks at vacant properties to identify unauthorized occupants before they become a significant issue. So, even if a trespasser can gain entry and occupy a property, these routine checks ensure they are detected early, and the property manager can move to resolve the situation. 

Squatter Evictions

If an unauthorized individual is found occupying a property, managers promptly alert the local authorities and follow the standard procedures based on local laws. Dealing with squatters can be a challenging experience, and it’s important to note that the process of removing squatters can vary significantly from state to state.   

Resident Evictions

Resident evictions occur when a tenant violates the lease terms, fails to pay rent, or does not vacate the property at the end of their lease. Property managers typically terminate the lease and file for eviction if a resident is two months behind on rent payments (60 days plus a buffer period for late fees). 

Eviction Process Overview

The eviction process involves several steps, varying in duration depending on the jurisdiction and type of eviction. Here is a general overview:

1. Rent Demand: If it is a resident eviction, a legal demand for payment or vacancy is issued, providing a specified date for compliance. The demand period typically ranges from 3 to 30 days, depending on the jurisdiction.

2. Filing: An eviction case is filed with the court once the demand period expires. The filing process takes 1 to 10 days, and the resident usually has 5 to 14 days to respond.

3. Summons: The court serves a summons to the resident, typically taking 5 to 21 days. The speed of service depends on the case volume and the backlog of the sheriff or the court’s process server.

4. Answer & Hearing: A hearing is scheduled if the resident answers the summons. The hearing date can range from 7 to 120 days and is affected by case volume, court backlog, and any actions requested by the judge.

5. Judgement & Writ of Possession: The court awards possession to the landlord following the hearing. A default judgment may be requested if the resident fails to answer the summons. The judgment and waiting period for the Writ of Possession typically takes 1 to 7 days for default judgments and 7 to 30 days for regular judgments.

6. Set Out: Once the court issues the Writ of Possession, it is forwarded to the sheriff or magistrate for execution. The set-out process can take 10 to 120 days, depending on the availability and backlog of the Writs.

Additional Considerations

It’s important to note that eviction timelines are largely uncontrollable and can vary significantly depending on the jurisdiction and type of eviction. However, our property managers’ proactive steps ensuring immediate issuance of demand/notice and promptly submitting the filing request to the attorney after the demand period expires help expedite the process. 

Final Thoughts

The rental home business can be messy and complicated. With a portfolio of hundreds of homes, there will be challenging situations with individual properties, including squatters, evictions, vandalism, theft, properties that take a long time to lease, renovations that go over budget and over time, etc. 

Our team has many years of experience dealing with these issues, and we work hard to minimize the financial impact as much as possible. As much as we try, it’s impossible to completely prevent these issues from occurring, which is one of the many reasons we recommend investors diversify across multiple homes and markets to minimize risk across properties. 

Overall, the Vantage Horizon  portfolio performs exceptionally well, with an occupancy rate of 95%. By investing on Vantage Horizon  and diversifying across multiple homes and markets, you are minimizing your exposure and ensuring that your portfolio is resilient in the face of any unforeseen circumstances that could arise. 

At Vantage Horizon, our mission is to empower the world to build wealth through modern real estate investing. We aim to do that by opening up the real estate market for those who might not otherwise have access to it. Achieving that mission requires more than just an incredible product and team. We prioritise integrity, sustainability, and humanity in everything that we do. 

We are a mission and values-driven team and believe deeply that ethical business practices for all our stakeholders and communities will lead to the best business outcomes for our clients, residents, communities, and employees. We also believe it is the right thing to do. 

Vantage Horizon operates as a Public Benefit Corporate- this means that in addition to our standard corporate governance, Vantage Horizon also promotes public benefits in financial inclusion, fair & equitable housing, and job creation.

We recognise that Vantage Horizon has four main stakeholders: the clients who invest their capital, the residents who lease out Vantage Horizon rental properties, the communities Vantage Horizon rental properties are in, and the team of employees that serve our stakeholders. Below are our stated goals and commitments to each of our stakeholders.

Our Impact Goal

Our goal at Vantage Horizon is to help turn 1 million people into first-time property owners. We believe everyone deserves the opportunity to own a piece of the American Dream and to have an equity stake in our communities

Commitments To Our Clients 

We take it very seriously that individuals have chosen to invest their hard-earned capital in Vantage Horizon property offerings. We are client-focused and dedicated to helping people realize their long-term financial goals through homeownership. We strive daily to ensure that our actions result in new value for all our clients. We believe that ethical business practices and good governance promote the long-term interests of our clients and their investments. 

Responsible Stewards of Client Investments

At Vantage Horizon, we aim to help our clients build long-term wealth and realize their financial goals. Our property selection and management process is built around maximizing long-term value realization for our clients. We aim to provide transparent information to our clients so that they can make the right decisions for their financial future. 

Commitment: Vantage Horizon will publish an annual investment report that shows aggregated and anonymized investment returns for our clients. 

Financial Education

We believe that financial health and success is rooted in proper financial education. We strive to create content that helps our clients make the most informed decisions around their financial future, whether that includes investing with Vantage Horizon or not. 

Commitment: We commit to investing in content creation that helps provide free financial education to the general public. We aim to reach one million people through our learning content each year.

Accuracy & Integrity of Company Reporting

Vantage Horizon Offerings are qualified with the U.S. Securities and Exchange Commission or “SEC”. We publish detailed financial reporting on all property offerings with the SEC in our semi-annual 1-SA filing and fully audited financial statements with the SEC annually through our 1-K filings. (View Vantage Horizon SEC filings). Vantage Horizon property financials are prepared in compliance with generally accepted accounting principles for regulatory purposes. Vantage Horizon holds its team accountable for the accuracy and integrity of information. 

Commitment: We commit to publishing audited property financials in time to meet all SEC requirements.

Commitments To Our Residents

Vantage Horizon strives to give residents the choice to lease quality homes in attractive neighborhoods in their community. Vantage Horizon works hard to ensure an equal and fair housing environment for all residents of the Vantage Horizon community, and we expect that all of our real estate partners do the same. 

Fair Housing Policy

Equal and fair housing for all Vantage Horizon residents. Vantage Horizon is committed to providing equal opportunity in housing. It is the policy of Vantage Horizon and our partners to support & comply with all federal, state, and local fair housing laws. In each and every aspect of the housing process, Vantage Horizon and its partners will not discriminate on the basis of race, color, religion, sex, disability, familial status, national origin, sexual orientation, gender identity or expression, age, ancestry, political affiliation, or marital status. Vantage Horizon and its partners will not discriminate on any other basis deemed unlawful by state or local law. Vantage Horizon and its partners will provide reasonable accommodations upon request to its residents and occupants with disabilities. Additionally, Vantage Horizon and its partners will not retaliate against anyone who attempts to enforce or who assists someone in enforcing their fair housing rights.

Commitment: Vantage Horizon and all Vantage Horizon property management partners commit to a Fair Housing policy in a partnership addendum.

Equity for Residents

We believe that everybody who rents out the home that that occupy deserves a chance to obtain the financial benefits that come from property ownership. As a result it is critical that all residents in Vantage Horizon rental homes have ownership of property themselves and we are committing to ensuring that is the case. In addition to residents in Vantage Horizon rental homes, we want to ensure that we are helping non Vantage Horizon renters who have never previously owned a property also become property owners.

Commitment: Vantage Horizon commits to providing over $200,000 in property equity to first-time property owners and to Vantage Horizon property residents in 2023. Vantage Horizon will donate $100 in property equity gift codes to over 2,000 individuals that are currently renting their main residence. This equity is given through shares of ownership in Vantage Horizon properties and is paid for directly by Vantage Horizon.

Quality Homes

We ensure that all Vantage Horizon properties not only initially surpass a minimum level of quality but that those properties are well maintained over time. That level of quality ensures that properties are safe for all tenants and results in an enjoyable living experience. 

Commitment: Vantage Horizon commits to providing tenants a safe and clean living space that is well maintained and properly cared for. 

Commitments To Our Communities 

We recognize that the vitality of our property investments is directly linked to the vitality of the communities in which they operate. We invest in improving our properties and maintaining them at high standards with timely maintenance. We hire locally for our property services and view ourselves as long-term investors in every market we enter.

We believe that these investments benefit our communities by creating jobs, enhancing neighborhood appearance and livability, and improving the overall quality of life for our residents and their neighbors.

Being a Good Neighbor

We recognize that we play an important role in our community and we strive to have Vantage Horizon properties and tenants be positive actors in our community. We ensure that our properties are well-maintained and do their part in helping the communities thrive. We aim to help our communities flourish over the short and long term through respect, empathy, and open communication. 

Commitment: Vantage Horizon commits to not only be responsible members of our community but also to help educate our partners, tenants & other stakeholders to do the same. 

Responsible Housing Investing

It is estimated that the USA is short about five million homes. That is, five million more households were formed than new homes were built. We work very hard to help add net new incremental homes to the housing supply. That includes working with builders to fund new housing stock and land developments. 

Commitment: We commit to ensuring that over 250 housing units on our platform will be net new incremental builds by 2023.

Commitments To Our Team 

We are a diverse team of talented individuals who are driven to improve access for our clients and increase the well-being of our stakeholders. We take initiative to make our company better every day and go out of our way to solve hard problems. In the process, we strive to promote a workplace where everyone is treated fairly and where we act with honesty, integrity, and respect.  We invest in inclusivity and believe that our differences can help drive product innovation, stronger performance, and an environment where everyone has a voice.  

Invest in Inclusivity

We strive to have a workplace where differences are celebrated, where everybody is treated with the same respect and feels safe and accepted. We believe everybody should have equitable professional opportunities, regardless of their background, geography, educational journey, or personal beliefs.

Commitment: We commit to publishing an annual diversity report on our board, leadership, and team. We will also conduct an annual employee sentiment survey to measure our commitment to inclusivity.