If you were given $1 million to invest today, where would you put it? In today’s market, the “pretty” choice is rarely the “profitable” one. To find the real winners, you have to look past the skyline views and look at the laws, the demographics, and the demand cycles.
Let’s run a “Winner Stays On” tournament through the most popular real estate plays in the US to see which strategy actually holds the crown.
Round 1: New York vs. Texas
The Winner: Texas Multi-Family. New York is an iconic market, but for an investor, it’s a legal minefield. Texas remains one of the most landlord-friendly states in the country. When you invest in Texas multi-family, you are investing in a jurisdiction that respects property rights and rewards owners who provide housing.
Round 2: Florida STR vs. Arizona Build-to-Rent (BTR)
The Winner: Arizona BTR. Short-term rentals (STRs) in Florida are the “shiny object” of the last decade. But they are volatile. I choose the Arizona Build-to-Rent community every time. Why? Because of the retiring Boomer. There is a massive demographic of people giving up their 5,000-square-foot “McMansions” who have no desire to move into a cramped, noisy apartment complex. They want a home—with a yard and a front door—but without the maintenance. BTR communities are the perfect solution for this high-net-worth downsizing trend.
Round 3: Colorado Vacation Cabins vs. Arizona BTR
The Winner: Arizona BTR. Vacation properties are highly sensitive to the economy. When the market is booming, they are gold mines; but when the economy tightens, they are the first thing people cut from their budgets. Build-to-rent communities serve a primary housing need. Demand is consistent regardless of whether people are taking vacations that year.
Final Round: LA Commercial vs. Tennessee Single-Family
The Winner: Tennessee Single-Family. I wouldn’t touch Los Angeles real estate with a ten-foot pole right now. Between the regulatory hurdles, the mansion taxes, and the tenant laws, the rules are simply not in your favor. Tennessee, however, offers a robust growth market with a legal framework that treats the investor as a partner, not a target.
The Strategy of the Professional
Winning in real estate isn’t about being “lucky” in a certain city. It’s about being disciplined in your criteria:
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- Specialization: Stick to what you know (e.g., Multi-family vs. STR).
- Jurisdiction: Invest where the laws protect the owner.
- Demographics: Build for the people who are actually moving (like the downsizing retiree).
Stop chasing the “glamour” play and start chasing the “fundamental” play. That’s how real wealth is manufactured.
Invest Confidently with Shannon Robnett
By reading this blog you’ve began the first step in aligning your investment strategy with your personal financial goals. At Shannon Robnett Industries, we bring decades of experience structuring both types of opportunities, with a proven track record of helping investors build wealth through carefully vetted, tax-advantaged real estate projects.
Whether you’re seeking steady income through debt or long-term growth through equity, our team is here to help you make the right move.