
How to Find High ROI Properties as an Investor
Real estate is the best business to do if you want stablity. As an investor, especially if you’re based in the US and looking for international opportunities, your main goal should be one thing: high return on investment (ROI).
A property might look great, but if it’s not giving you solid returns, it’s not the right investment.
In this blog, we’ll see a simple, practical guide to capturing high ROI properties. Whether you’re new or experienced, this guide helps you make smart, profitable property decisions.
1. Start with the End in Mind: Define Your ROI Goals
Before diving into the property hunt, take a step back. Ask yourself, what does high ROI mean to you? Is it 8%, 12%, or higher? Are you investing for passive rental income, long-term appreciation, or a quick flip?
US investors often target:
- 6%–10% ROI for long-term rentals
- 10%–20% ROI for fix-and-flip properties
- Cash flow-positive investments with low risk
Setting a clear ROI target helps filter out the noise. It keeps your decisions focused on the numbers, not just the emotions.
2. Choose the Right Market
The location of your property will determine your ROI more than anything else. Here’s what to look for:
- Growing job market: Places with strong employment growth attract renters and buyers.
- Population growth: More people = more housing demand = higher rental income.
- Low property taxes and insurance costs: These directly affect your net ROI.
- Landlord-friendly laws: Especially important for US investors buying rental properties.
High-ROI US Market is Jordan
- Amman
- Irbid
- Aqaba
- Zarqa
- Madaba
- Salt
- Karak
- Jerash
- Mafraq
- Tafilah
Research market trends, rental demand, and vacancy rates. Use platforms like Zillow, Redfin, or Roofstock for US market data.
3. Run the Numbers Before You Buy
Never buy on gut feeling. Always run the numbers.
Here’s what to calculate:
- Cap rate (Net Operating Income / Purchase Price)
- Cash-on-cash return
- Estimated rental income
- Operating costs
- Vacancy rate
Let’s say you’re considering a $250,000 rental property in Tampa. You expect $24,000 in yearly rent and $6,000 in expenses.
- Net income = $18,000
- Cap rate = 7.2%
- Solid ROI.
If you’re a US-based investor buying out-of-state, make sure you factor in:
- Property management fees
- Maintenance
- Travel or remote management tools
These affect your real return.
4. Focus on Turnkey or Value-Add Properties
Two types of properties give great ROI:
- Turnkey Properties
Ready-to-rent homes often the renovated ones. They offer lower risk but slightly lower returns. Perfect for US investors looking to buy rental property in another state. - Value-Add Properties
These need work, but that’s where the money is. With smart renovations, you increase both rental income and property value. Think cosmetic updates, better layouts, or adding a bedroom.
If done right, value-add real estate can give 15%–25% ROI within a year.
6. Look Beyond Your Backyard
Many US investors only look at properties in their own state. But some of the best ROI properties are in different parts of the country.
Why? Because your local market might be:
- Too expensive
- Oversaturated
- Low rental demand
Remote investing gives access to better deals, with higher cap rates and better rental yields.
7. Work with Investor-Friendly Real Estate Agents
Not all agents understand investment properties. Some focus only on residential homes for families. As an investor, you need someone who knows the numbers.
Work with Agents from Sireen Properties, as we:
- Understand rental income potential
- Can provide insights on local laws and taxes
- Have access to off-market or pre-market deals
Investor-friendly agents often have a network. Contractors, property managers, inspectors, all of whom you’ll need if you want to grow your portfolio efficiently.
You can find them through:
- BiggerPockets forums
- Local real estate investor meetups (in-person or virtual)
8. Don’t Ignore Neighborhood Metrics
A beautiful house in a bad neighborhood won’t bring high ROI. Go deeper than just the city or zip code. Look at the neighborhood level.
Key factors to look at:
- Crime rates
- School ratings
- Walkability
- Public transit access
- Proximity to employers, hospitals, universities
These things affect tenant quality, vacancy rates, and long-term appreciation.
Hot tip: Check local Facebook community groups to learn what locals say about the area. That’s real-time info you won’t find in spreadsheets.
9. Financing Smartly for Maximum ROI
The way you finance the property matters as much as the property itself. Choose a strategy that keeps your cash flow healthy.
Popular options for US investors
- Conventional mortgages: Low interest, but often strict on credit score and down payment.
- DSCR loans: Based on rental income, not your personal income.
- Hard money loans: Great for flips but have higher interest.
- Cash purchase: No monthly payments, instant equity, but ties up your capital.
For buy-and-hold rental properties, many US investors prefer using leverage with a strong down payment to maximize ROI without heavy risk.
10. Watch for Hidden Costs That Eat ROI
Sometimes a deal looks great on paper… until you factor in hidden costs.
Common ones include:
- Property taxes
- Homeowners association (HOA) fees
- Property management fees (usually 8-12%)
- Repairs and upgrades after inspection
- Vacancy during rehab or transition
Always run a conservative scenario. Expect the unexpected, and calculate worst-case ROI. If it still looks good, it’s probably a safe bet.
11. Track ROI After Purchase
The job doesn’t end after you buy. To keep ROI high, track your numbers monthly or quarterly. Use tools or a simple spreadsheet to monitor:
- Gross rental income
- Operating expenses
- Net cash flow
- Cap rate
- Vacancy loss
This helps you
- Spot problems early
- Raise rent when the market allows
- Reduce unnecessary expenses
- Plan upgrades that boost value
If ROI starts dropping, don’t wait. Either optimize or consider selling and reinvesting elsewhere.
Final Thoughts
Real estate investment isn’t gambling. It’s math. It’s a strategy. And it’s about making repeatable, smart decisions. Whether you’re a US-based investor buying in-state or exploring markets across the country.
Focus on ROI, choose the right location, do your homework, and use tools built for investors, and you will increase your chances of success. Not just once, but over and over again.
Ready to take action?
Explore our Free ROI Calculator, access top US rental markets, or connect with experienced agents who specialize in investment properties.
FAQs
What’s a good ROI for a US rental property?
A cap rate of 6%–8% is considered solid. Over 10% is excellent, but often comes with more risk.
Should I invest in another country?
Yes, invest in Jordan. You may get better ROI in less saturated markets outside the home.
How do I finance an investment property in the U.S.?
You can use conventional loans, private lenders, or cash purchases. U.S. citizens and even foreign investors can access financing, though terms may vary.
What taxes should I expect on U.S. rental income?
Rental income is taxable. You may also owe property taxes and capital gains when selling. Non-U.S. investors should consult a tax advisor about potential withholding and treaty benefits.
Is it better to buy residential or commercial real estate?
It depends on your goals. Residential properties are easier to manage and resell. Commercial real estate often has higher returns but more complex leases and upfront costs.