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SHOW NOTES FOR EPISODE 390: 10 BEST CITIES TO RETIRE AND INVEST IN 2020
This is not your typical “Top 10” podcast episode. Instead of just creating a list, we looked for the best places to both retire AND to invest in real estate. In this episode, Bill examines and “overlays” cities in the following categories (top retirement cities, top real estate investment cities, top landlord-friendly cities and states without personal income tax) to come up with the 10 Best Cities to Retire AND Invest for 2020.
Tip of the Week
The Tip of the Week for this week comes from a question received by one of our listeners – Nina.
- QUESTION FROM NINA: “How do you find out how good a neighborhood is? Trulia has crime rate. So do I need to stick to the lowest rate areas?”
- ANSWER: Crime statistics are very important. However, you need to also factor in what your tenant base is. If you are focused on low income housing, sometimes the cri,e stats aren’t perfect. There may be petty crime and other non-serious crimes. However, ares that have a high incidence of violent crime are ares you definitely want to avoid. To learn more about how to determine what the crime stats are for your area, check out this podcast: 212: How to Research Property Crime Statistics June 8, 2018
- Some top online resources: Neighborhood Scout, Crime Reports, Spot Crime – 10 total sites to check the crime in your area
Introduction
This show is a little different other “Top 10” shows where I just read a list of the top ten markets or other lists. In the past, I’ve featured my share of TOP 10 cities
- Emerging Markets for 2017, 2018, 2019, 2020
- Multifamily Markets
- Population Growth Metros
So, I thought I would do something different…
First let me do a quick survey here. You can raise your hand if the answer is yes:
- How many are retired?
- How many of you are planning on retiring in 5, 10, 15, 20 years? (keep your hands up – unless you’re driving)
- How many are empty nesters (kids all moved out or will be in the next 5-10 years)?
- How many of you plan to hold on to house after the kids are gone?
- How many want to sell to either downsize and/or to use your equity?
- How many of you are real estate investors?
- How many of you want to be a real estate investor?
Well, if you lifted up your hand up more than three times, then this may be a show for you.
Personal Assessment of Retirement Locations
As many of you know, I have 7 kids:
- 2 of our kids are married with children (I have 4 grandchildren)
- One, my oldest daughter, is the only one of our kids who lives out-of-state – she lives in Ohio with her husband and 2 kids (my grandkids)
- All the rest live here in Southern California
- 3 are living with us, but two will soon be moving out soon (yeh right)
- One’s in Arkansas but coming home soon
- But 6 will still will be living in So Cal
- And we only have one minor who’s still in grade school – Kenny – a sophomore in High School
- Star football player – running back
- Wants to leverage to play college ball – free ride, whole enchilada – Clemson, Bama, whatever
- So my wife Susette and I have been talking… I’m sure many of you have had this discussion as well. What are we going to do when our last kid leaves??? Besides celebrate! No just kidding… after much tears… having to figure this out
- We can move anywhere we want
- But wait… there are still kids and grandkids here. And then there are weddings, new sons and daughters in law and more grandkids
- But with 6 kids with no real plans per se, we could still move, wait to see where everyone moves and then find out where everyone ends up
- Now, there are things we love about California (the beaches, the mountains, the deserts, the entertainment. Arts, culture, etc
- And the things we hate:
- The traffic
- Too many people
- The taxes
- The politics
- Growing homeless problem
- Increasing crime
- So we thought, in a perfect world…
- We could more to a perfect place and the kids and their families would follow
- Well, your situation may differ. Maybe you don’t have so many kids to factor in our maybe they don’t factor in… but in any case, what if you could choose that perfect place and, besides everything you would want for your retirement years, that it also happened to be a great place to invest in real estate.
- Perhaps, it could be a place we move for a short period of time 5, 7 or 10 years and then move to where most the kids are or a good central location for the fam
- So I started researching first, the top places in the US to retire and then, I overlapped that with the best places to invest to come up with some interesting possibilities
A Study of Best Retirement Cities
US News & World Report offer a comprehensive evaluation of the country’s 125 largest metropolitan areas –
Four Florida metro areas and two North Carolina metro areas rank in the top 10. Up from No. 2 last year, Fort Myers, Florida, tops the list due to increases in desirability, health care quality, job market strength and happiness. Sarasota, Florida, jumps from No. 3 to No. 2 this year, due to increases in desirability, health care and job market scores, despite falling in the areas of happiness and housing affordability. Lancaster, Pennsylvania, falls from No. 1 to No. 3 this year due to decreases in happiness and housing affordability.
In addition, two metro areas not previously ranked broke into the top five – Asheville, North Carolina, at No. 4, and Port St. Lucie, Florida, at No. 5. Both areas ranked high due to desirability and happiness scores; Asheville is also noteworthy for its affordable housing, while Port St. Lucie scored well for its retiree tax policy. Among the 10 most populous metro areas in the United States, including New York City, Miami, Los Angeles and Washington, D.C., only Dallas-Fort Worth, Texas cracked the 2020 Best Places to Retire top 10 – with all 10 of the largest areas scoring low in housing affordability.
The 2020 Best Places to Retire were determined based on a methodology that factored in happiness, housing affordability, health care quality, desirability, retiree taxes and job market ratings. These measures were weighted based on a public survey of individuals across the U.S who are nearing retirement age (ages 45-59) and those who are of retirement age (60 or older) to find out what matters most when considering where to retire.
Top 10 Cities to Retire in 2020
- Fort Myers, FL
- Sarasota, FL
- Lancaster, PA
- Asheville, NC
- Port St. Lucie, FL
- Jacksonville, FL
- Winston-Salem, NC
- Nashville, TN
- Grand Rapids, MI
- Dallas-Fort Worth, TX
Bill’s Top 10 Cities to Invest for 2020
- Raleigh-Durham (1.5 hr–Winston-Salem, 1 hr-Greensboro, 2.5 hr-Charlotte)
- Dallas-Ft Worth
- Orlando (2 hours from Jacksonville)
- Atlanta
- Nashville
- Indianapolis
- Charlotte (1.5 from Greensboro)
- Jacksonville (2 hours from Orlando)
- Greensboro (3hr-Asheville, 1.5 hr Charlotte, .5 hr –Winston-Salem, 1 hr-Raleigh-Durham)
- Winston-Salem
Top Investment States/Cities for Neal Bawa
- North Carolina
- Raleigh
- Charlotte
- Winston-Salem
- Ashville
- Housing is inexpensive
- Cashflow at 6-7 but appreciation is strong
- Florida
- Jacksonville
- Arizona
- Phoenix
- Gilbert
- Chandler
- Mesa (a favorite of Neal)
- Tucson
- Texas
- San Antonio
Top Investment States for Vinnie Chopra
- Florida
- Jacksonville
- Orlando
- Tampa
- Melbourne
- Georgia
- Atlanta
- North Carolina
- Raleigh
- Duram
- Greenville
- Kentucky
- Tennessee
- Alabama
- Utah
- Colorado
- Colorado Springs
- Arizona
- Tucson
- Texas
- Dallas/Ft Worth
- San Antonio
- Indiana
- Michigan
- Grand Rapids
Landlord-Friendly States (1)
https://learn.roofstock.com/blog/landlord-friendly-states
- Indiana
- Georgia
- Kentucky
- Texas
- Arizona
- Florida
- Alabama
- North Carolina – https://www.avail.co/education/laws/north-carolina-landlord-tenant-law
States With No Personal Income Tax (2)
https://www.businessinsider.com/states-with-no-income-tax-map
- Alaska
- Florida
- Nevada
- South Dakota
- Texas
- Washington
- Wyoming
- New Hampshire*
- Tennessee*
* Tax Investment Income
For retirees, in particular, that means no state income tax on Social Security benefits, withdrawals from IRAs and 401(k)s, and payouts from pensions.
So What are the 10 Best Cities to Both Retire AND Invest?
-
Fort Myers, FL (1,2)
-
Sarasota, FL (1,2)
-
Port St. Lucie, FL (1,2)
-
Jacksonville, FL (1,2)
-
Asheville, NC (2 hours from Charlotte & Winston-Salem) (1)
-
Winston-Salem, NC (.5 hr – Greensboro, 1.25-Charlotte, 1.5 hr-Raleigh-Durham) (1)
-
Nashville, TN (2)
-
Lancaster, PA
-
Phoenix/Tucson, AZ (1)
-
Dallas-Fort Worth/San Antonio TX (1,2)
1 – Landlord-Friendly State
2 – No Personal Income Taxes State
DISCLAIMER: Many of the above strategies take knowledge and have a higher degree of risk. You need to do your research and/or work with someone who is experienced to reduce your risk.
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