Market Dilemma & How to Identify a Good Neighborhood
Hello Everyone,
I am new to BP and sort of new to REI. By that I mean, I have taken college courses on REI and I understand the basics. I graduated college last year and have since saved up a little over $15,000. The problem is, I don't know what area to invest in.
I currently rent in the DC-Metro area. I am sure you all know, $15k doesn't get you very far in that market. I would like to find something in the DC area because it will always have a renters market, I could liquidate pretty easily if I needed to, and I would be close (mileage wise) to my first property which would be ideal.
I am also considering properties in my college town. Why? I know the area very well, and I know what houses will always have renters. I would be comfortable investing in that area, and my $15k can go a long way. The problem: it's a 4.5 hour drive (+/- 1 hr depending on traffic).
What route would you guys take? Would you get creative with financing in the DC area, or would you play it safe and invest back in a college town understanding that your physical visits will be limited?
My second question is a bit more basic. I am trying to understand how to identify a good neighborhood. I know I can pull the city's CAFR and study the financials and demographic changes. So I am comfortable identifying a hot market as a whole. But I find it more difficult to narrow it down to a specific neighborhood. I know I can drive through and study the landscaping, demographics, cleanliness, etc. But how do you identify the neighborhood in the first place? And once you do, how do you know whether demand is picking up or dying down?
That's everything for now. Thank you for your time I know it was a long one. I look forward to hearing some responses!
Brandon