Basic homework to start in a new market

2 Replies

Hello,

I am looking to start investing in the Gainesville, FL market. What are some recommended homework I should/can do to ensure specific location is worth while. Any tips and resources are greatly appreciated!

One of the best tips I've heard for scoping out a new market is to print out a map and drive the area. Then highlight the streets you like in green, yellow if their iffy and red if your praying not to break down. That way when your cruising the MLS and something looks like an amazing deal you can refer back to your map.

Just a couple of general suggestions: 

1. Areas with a lot of "for rent signs" clustered together, tends to be an area with higher turnover rate.

2. Look for schools nearby and how the state has ranked them, meaning the higher the ranking, the more attractive your place becomes.

Overall I think you need to decide what kind of investing appeals to you. Do you want to offer low income (Section 8), buy and hold, invest in SFH, Muti-family, fix and flip, etc. It is easy to pick something in general however it can get overwhelming with so many areas of real estate. The more focused you can become, the greater chance of success. When I first started, I focused on 2 bedroom houses (they are cheap 25K and easy to maintain) and section 8 (paid $600 a month) to help ensure I was making money.

Good Luck

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