Sub-Cities are cities surrounding a larger population metropolitan area of 350,000 or more. Investing in sub-cities is more profitable than large metropolitan cities.
When thinking of investing sometimes the sub-cities are where you want to be!
Investing in sub-cities is more profitable than the metropolitan cities because of their lower home prices, lower tenant turnover, lower costs, and sometimes fewer legal issues to deal with.
You may feel that sub-cities are “in the middle of nowhere,” but these places are often safe investments compared to the Metropolitan cities with high crime rates, high costs, and higher home prices.
You must do your research or have someone that you trust and knows the market well for investing in sub-cities to know the expected pricing for the housing value before and after completion.
Many investors and wholesalers in real estate only look to the metropolitan areas believing that it will be a home run.
The metropolitan cities may get rented or sold well initially, but these areas do not drive the highest return for the investment compared with sub-cities. This is due to increase legal issue, higher tenant turnover, and higher crime rates.
Sub-cities have fewer professional home buyers, such as investors and wholesalers, who tend to drive up prices.
Sub-cities generally have lower home costs, lower sub-contractor costs, less tenant turn over, and usually lower crime-rates which makes investing in sub-cities a grand slam!