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Levi Rounce
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choosing a location close to where i am to invest

Levi Rounce
Posted Jan 4 2023, 10:25

hello i am looking to start out my real estate investment as soon as possible. i have came to the conclusion that i need to pick a market that i want to invest and then the property(that probaly seems obvious). Anyways there are no real a class locations near me. What can i look for in areas around me to chose the best loaction is my gerneral are around me?  The only reason i want to stay somewhat close is to house hack as my first deal. thank you so much for your reply in advance. 

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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
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Nathan Gesner
  • Real Estate Broker
  • Cody, WY
ModeratorReplied Jan 5 2023, 06:25
Quote from @Levi Rounce:

hello i am looking to start out my real estate investment as soon as possible. i have came to the conclusion that i need to pick a market that i want to invest and then the property(that probaly seems obvious). Anyways there are no real a class locations near me. What can i look for in areas around me to chose the best loaction is my gerneral are around me?  The only reason i want to stay somewhat close is to house hack as my first deal. thank you so much for your reply in advance. 


 Welcome to the BiggerPockets forums!

Use the search feature (here or on Google) and look for Dave Meyer. He's a big data cruncher for BiggerPockets and regularly talks about the best markets for investors. Here's an example: 

  • Property Manager Wyoming (#12599)

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Nathan A.
  • New to Real Estate
  • Sunnyvale CA and Maplewood, NJ
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Nathan A.
  • New to Real Estate
  • Sunnyvale CA and Maplewood, NJ
Replied Jan 5 2023, 06:57

Keep in mind that there's a tradeoff between the quality of the area and the cash flow you're likely to get. I'm going to assume since you mentioned Class A that you mean "best" as "most desirable." Among the factors you can use to analyze neighborhoods are: population growth and development activity, the presence of grocery stores or Starbucks, the quality of schools, absence of crime and ease of commuting. Since you are going to be house hacking, be sure to think about where you want to live and where you think your potential tenants would want to live. A knowledgeable local agent will also be a gold mine of information about what areas are most desirable to other buyers.

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Hamed Rahimi
  • Realtor
  • St Louis, MO
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Hamed Rahimi
  • Realtor
  • St Louis, MO
Replied Jan 11 2023, 07:00

If you are going to Class A neighborhood, it would be difficult to get the cash flow and return on investment that you may want. Sometimes the neighborhood that are close to companies, universities, ... are the best market to invest in and they may not be class A. Also, when choosing the market, look at the access to shopping centers, schools, major highways, .... Also look at the school rating and the average income in the zip code when you want to evaluate what rent a potential tenant can pay.

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Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
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Steven Foster Wilson
  • Rental Property Investor
  • Columbus, OH
Replied Jan 11 2023, 08:17
Quote from @Levi Rounce:

hello i am looking to start out my real estate investment as soon as possible. i have came to the conclusion that i need to pick a market that i want to invest and then the property(that probaly seems obvious). Anyways there are no real a class locations near me. What can i look for in areas around me to chose the best loaction is my gerneral are around me?  The only reason i want to stay somewhat close is to house hack as my first deal. thank you so much for your reply in advance. 


 Hey Levi, welcome to BiggerPockets! I'd prefer a B and C class properties for my first investment. These kinds of neighborhood are generating good cash flow every month and appreciation will always be part of your success as well as equity. I'd say that A Class properties are more for Owner occupants rather than tenants. A class properties are the types to have high property taxes, and can have the lowest cap rates. Additionally, when repairs are needed, because the amenities are high-end, this can also become expensive.

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Joseph Crunkilton
  • Rental Property Investor
  • Oregon City, OR
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Joseph Crunkilton
  • Rental Property Investor
  • Oregon City, OR
Replied Jan 13 2023, 07:25

Levi, talk to local agents. You don't need to hit a homerun on your first deal. Singles and doubles get you paid. My house that made me little money a few years ago is making big money now.

Talk to some agents and start looking around. They'll be able to advise on which areas are better than others. Deals are scarce so be ready to pounce on one that works. 

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Napoleon DeCiutiis
  • Real Estate Agent
  • The Short Term Shop / Florida Emerald and Forgotten Coasts
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Napoleon DeCiutiis
  • Real Estate Agent
  • The Short Term Shop / Florida Emerald and Forgotten Coasts
Replied Jan 13 2023, 07:30
Quote from @Levi Rounce:

hello i am looking to start out my real estate investment as soon as possible. i have came to the conclusion that i need to pick a market that i want to invest and then the property(that probaly seems obvious). Anyways there are no real a class locations near me. What can i look for in areas around me to chose the best loaction is my gerneral are around me?  The only reason i want to stay somewhat close is to house hack as my first deal. thank you so much for your reply in advance. 


 Levi, 

Check out The Short Term Shop ....we already have done a lot of the work in providing choices from a plethora of proven drivable rental markets.  Give us a call/email! 

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Matthew Morrow
  • Investor
  • Pennsylvania
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Matthew Morrow
  • Investor
  • Pennsylvania
Replied Jan 14 2023, 05:21
Quote from @Levi Rounce:

hello i am looking to start out my real estate investment as soon as possible. i have came to the conclusion that i need to pick a market that i want to invest and then the property(that probaly seems obvious). Anyways there are no real a class locations near me. What can i look for in areas around me to chose the best loaction is my gerneral are around me?  The only reason i want to stay somewhat close is to house hack as my first deal. thank you so much for your reply in advance. 


 The Lehigh Valley is a fantastic place to start (many of us did here). You can take online classes or connect with people who will mentor (or both.) 
House hacking can be an extremely good way to get into investing, especially here. There are many opportunities to buy someone with low $ down, put some sweat equity in, and then rent out in the future. We've helped many clients in the area do this. Just always stay open minded, learn as much as you can, and never let someone convince you to buy. Investment real estate and its value- sells itself.