Finding a Location

[Ray Lim]

I am a new investor and need advice in choosing "where" to invest. Everything is composed of little steps and I think the first step I should make is determining how to pick "where" I want to start investing. In the future I would like to invest anywhere in the country, but because I am a novice, I would like to stick with local, driving distance (within 1 hour) areas.

I have just moved to Seattle and I am not familiar with the areas around Seattle. How should I start to look for locations to start investing?

[Joe M.]

I chose to stay close to home for my first deals. I looked at areas that were no more than about a 20 minute drive from my house.

Then I narrowed the area down to neighborhoods that were sort of that in between buffer type neighborhood. This is a neighborhood that is not a war zone but not the upscale suberbs either. Some call these areas "blue collar" neighborhoods.

I also familiarized myself with local school ratings/reputation. Where I live just simply crossing the street from one school zone to the next can have a significant impact on the appraised value of the house.