How to find a good area?

Question

I have a question. I am trying to figure out how I can pick a location, or better a area inside a location. I know that even two blocks away in some areas can be better or worse... With out flying to the area how do I find out if the location I am thinking about is worth investing?

THNAKS!

Sean Smith · Answer

@Robert Jones I've helped clients invest in real estate remotely for the majority of my career. Here's what I've found to work best:

1) Niche.com and compare the zip codes to zip codes that you've recently lived in. This is a great starting point.

2) Talk with at least 3 real estate agents and ask about areas you are interested in.

3) Talk with at least 3 property managers and ask about areas you are interested in. PMs have some of the best anecdotal data about neighborhoods. They manage in these areas. They fill vacancies in these areas. They deal with tenants in these areas.

4) Visit the market for a weekend. Drive around areas at different times of day.

5) Connect with investors active in the market and ask their advice.

Hope this helps!

Stephanie Walker · Answer

Unfortunately, anything you find online should only be read with a grain of salt. I've read very misleading articles about "the best and the worst areas" and nothing is more solid than boots on the ground but it doesn't have to be YOUR boots. Pick a general market, find an agent that specializes in investment purchases (better yet - someone who invests themselves), and lean into them for advice. Do your own due diligence as well but nothing beats localized knowledge.

Ryan Spath · Answer

@Robert Jones great question. Personally I prefer locations I live or have lived or a place I am familiar with. We like places with population growth, job growth, lower unemployment rates. When it comes to picking an area inside a location again in my opinion it is best to be your own boots on the ground and know the areas personally. Not saying it is impossible to do this remotely and never visit (people do this successfully). However, for myself personally if I were to consider investing my family's hard earned money in a new market I was unfamiliar with I would hop in the car or plan and spend a few days there. Meet with a realtor and possibly view a few properties in a part of town they referred. Interview a couple PM companies. I would also schedule my trip around the time when a local meet up was happening and be sure to attend. Best of luck!

Jules Aton · Answer

I prefer my boots on the ground especially early on. Consider scoping out areas close to where you live and have first hand knowledge.

Robert Jones · Answer

I agree, but I live in Seattle and I am not yet ready for that kind of investment.  For the down payment I could Get a house in a different part of united states.  Which means I have to learn a bit more.  Since many people invest outside of where they live there most be a bit of a check list or how to without all the overwhelm.  I realize that picking the area might be a very large part of my success.  Thanks for the reply.

Min Zhang · Answer

My clients typically use online resources like Niche and Roofstock to assess neighborhood ratings. Google Maps can also be helpful for getting a feel of the area. After that, I recommend consulting your agent for their opinion on the neighborhood/area to verify your initial findings.  Best of luck with your search!

Robert Jones · Answer

Good Advice. Thanks!

How to find a good area?

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