I'm looking to get involved with some Real Estate investing. I have some experienced friends who have offered to help me out, which makes me a little more comfortable with the magnitude of becoming a rental investor.
I've been doing a good bit of research on the area I'm interested in and crunched some of the numbers to find some appealing candidates for my first one.
To start, I'm eyeing foreclosures and I have identified a couple attractive ones (in good school districts, right price point, etc) and I intend to try and get a walkthrough on those properties. My plan is to purchase things in cash and to find single family homes with the goal of renting to families. I'm also prepared to invest a bit more capital in some renovations.
- Is it sound strategy to use Zillow / Craigslist to find comparable rentals (same bedroom/baths, sq ft, amenities) in my area to set my rent price point?
- My initial thinking was that people don't rent in this area. It seems foolish to think everyone buys the house they live in right? Are there any good indicators or resources to gauge the demand of rentals in the area?
- Regarding districts, how have you guys found school districts to influence rent appeal? My laymen assumption is that the nicer the school district, the higher the property tax which ultimately hurts ROI. But at the same time, a desirable school district would attract more families. Is the sweetspot to find a middle-tier school district or is it a non-factor?
1. Use zillow and craigslist to find rental comps.
2. You can use city-data to find owner occupied percentages for neighborhoods. This will tell you some data around the need for rentals in the area. If there are no rentals in a neighborhood then there might be a need for them.
3. I find school districts that are not the best . The best school districts have the most competition from other investors. When many families cannot afford the high rent or home prices.
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