Rental Property investing in up and coming area
Hello, First post here - When looking at an up-and-coming area with many 'new builds' and expanding school districts, do you feel that buying and renting older homes is more challenging than finding a well-established area without many 'new builds'? Thanks in advance for your help with this!
More challenging in what sense? If you are referring to a leasing perspective it's important to know that everything leases out as long as you price it correctly. So it's important to understand your rental comps before you decide to invest in a particular area.
Quote from @Jesus Roman:
More challenging in what sense? If you are referring to a leasing perspective it's important to know that everything leases out as long as you price it correctly. So it's important to understand your rental comps before you decide to invest in a particular area.
Thank you, yes. I was referring to ensuring there are tenants regularly and if new home builds limit the need for rental properties in that area.
#4 House Hacking Contributor
- Real Estate Agent
- Los Angeles, CA
From what I've seen, the challenge is more about the resale. As new construction home values drop, that pushes your value even lower because you need to compete.
From a rental perspective, just look at comps of older homes versus new homes and see if there is a difference. My hunch is that there isn't much of a difference in rents as long as the home looks nice and meets the needs of the tenants.
Quote from @Rick Albert:
From what I've seen, the challenge is more about the resale. As new construction home values drop, that pushes your value even lower because you need to compete.
From a rental perspective, just look at comps of older homes versus new homes and see if there is a difference. My hunch is that there isn't much of a difference in rents as long as the home looks nice and meets the needs of the tenants.
Thank you! This makes sense.
Hello! Currently I'm living in a city which is being rebuilt and revitalized. We've recently added new cafe's and much more! Although many buildings have been fixed up there are many more to be done and I'm sure will have a constant income stream! Feel free to stay connected! I'm wishing you the best!
I think the old and established area has more charm and school zone can stay the same. The new build areas, the school zone keeps changing every 5-10 years due to more kids, more people and the schools may be too crowded. So if school zone is a big factor, old and established area would be my choice.
#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
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- Austin, TX
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#3 BRRRR - Buy, Rehab, Rent, Refinance, Repeat Contributor
- Investor
- Austin, TX
Depends on that immediate market, how much supply and demand is there? Impossible to answer without looking at market data.
#3 Starting Out Contributor
- Flipper/Rehabber
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#3 Starting Out Contributor
- Flipper/Rehabber
- Pittsburgh
can you clarify your question?
i think there is strong demand for high quality rentals at all price points.
with newer housing stock there is typically (but not always!) less possibility for value add.
so it's all going to come down to your strategy.
Hi Patricia,
I think you'd find a better deal in an older area and get a fixer-upper. Areas in Houston like Oak Forest/Garden Oaks, Lazybrook, and Houston Heights are areas that my networks looks. More people and businesses are moving to this area. You could get a dump, fix it up, and rent it out. I'm not sure where you are located, but I could get you in touch with some property managers who could help you determine the rents in certain areas. Also if you ever wanted to talk about rehabs, I'd be happy to jump on a zoom with you!
All the best!
Chris