Aloha guys, I am looking for my first investment properties on general sites like Zillow, Realtor...
Usually I am looking in areas I do not live in as my home market is too expensive. I am looking to buy in B, B+ class neighborhood.
I would like ask more experienced investors for the tips how they recognize these areas and also what is their process of choosing a market. Appreciate your feedback.
@Rob Ko. Best way I think is to check the property records and see who owns what. If it’s a mix of homeowner and rentals probably B area. If it’s all rentals definitely C (or lower) usually
There is one way to do it correctly. You need to fly to the area and do the homework yourself. Anyone that skips this step will be really hurting their business. Your version of a B B+ area will be different my mine or some locals living out of state.
I have seen so many times people will say this is A area nice new home. I research and its a C area to me.
@Rob Ko. Best way I think is to check the property records and see who owns what. If it’s a mix of homeowner and rentals probably B area. If it’s all rentals definitely C (or lower) usually
@Rob Ko to be the most accurate you’ll have to go in person. However, you can probably get a ballpark idea by checking crime, rents, and home size, age, values relative to other areas in the same region. Google street view the property and click down the street. Maybe look for commercial vehicles, they may be a sign of a working class neighborhood. Nothing is going to be better than visiting in person or talking to someone with boots on the ground there.
Thank you very much Matt! I am actually looking in your area. How do you feel about Winter Park, Celebration and Kissimmee? Please let me know. Thank you
@Rob Ko to be the most accurate you’ll have to go in person. However, you can probably get a ballpark idea by checking crime, rents, and home size, age, values relative to other areas in the same region. Google street view the property and click down the street. Maybe look for commercial vehicles, they may be a sign of a working class neighborhood. Nothing is going to be better than visiting in person or talking to someone with boots on the ground there.
Thank you Frank, really appreciate your time and opinion. And yes, I totally agree. Nothing like seeing the property and neighborhood with your own eyes.
There is one way to do it correctly. You need to fly to the area and do the homework yourself. Anyone that skips this step will be really hurting their business. Your version of a B B+ area will be different my mine or some locals living out of state.
I have seen so many times people will say this is A area nice new home. I research and its a C area to me.
Thank you very much Caleb! That is interesting approach of getting to know the records. Do you ha e any specific site where you find out the info? Probably not on tax records whether you're renting the property or living in it. Please let me know.
@Rob Ko. Best way I think is to check the property records and see who owns what. If it’s a mix of homeowner and rentals probably B area. If it’s all rentals definitely C (or lower) usually
Thank you very much Caleb! That is interesting approach of getting to know the records. Do you ha e any specific site where you find out the info? Probably not on tax records whether you're renting the property or living in it. Please let me know.
@Rob Ko. Best way I think is to check the property records and see who owns what. If it’s a mix of homeowner and rentals probably B area. If it’s all rentals definitely C (or lower) usually
If it’s owned by an llc it’s a rental. If it’s owned by a person probably owner occupied. You can also check to see if the mailing address is same as the property address or not. If it’s not then also likely a rental.
Crime rate relative to surrounding areas, school ratings, business's, economic development, median income.
I agree with everyone else saying its probably a good idea to drive it. You see a lot of stuff in person that can give you clear signs of where a neighborhood stands. Plus you can talk to people and get opinions like the police men and local businesses. Say you are thinking about "moving" soon
@Rob Ko that’s convenient. I like all three of those sub-markets. The problem is finding something cash flowing is hard right now. Not impossible, but hard. Are you looking to see if those are B areas?
Yes, I did my research and people were saying nice things about areas. So was just wondering if those are good places. What other markets would you suggest?
Crime rate relative to surrounding areas, school ratings, business's, economic development, median income.
I agree with everyone else saying its probably a good idea to drive it. You see a lot of stuff in person that can give you clear signs of where a neighborhood stands. Plus you can talk to people and get opinions like the police men and local businesses. Say you are thinking about "moving" soon
Aloha guys, I am looking for my first investment properties on general sites like Zillow, Realtor...
Usually I am looking in areas I do not live in as my home market is too expensive. I am looking to buy in B, B+ class neighborhood.
I would like ask more experienced investors for the tips how they recognize these areas and also what is their process of choosing a market. Appreciate your feedback.
Use google maps and zoom in to see what kinds of cars people are driving, are their yards taken care of etc. The best way of course is to be there is person and drive the neighborhood.
@Rob Ko I think most areas of winter park would be A/B. Good schools there and lots of development, money and high end establishments. Rents are high.
Celebration is also mostly A/B. The best part of Celebration is you are by Disney. You will always have lots of potential tenants and rents are high. Lots of growth and development around Disney.
Kissimmee I am not as familiar with in terms of neighborhood rating. But if I were to invest in Kissimmee I would probably target the 34744 zip code, north of East Lake Toho. I have driven through those neighborhoods and would say they are B/B+. This area is pretty close to Lake Nona and the Medical City. Tavistock is investing a ton of money into the development of Lake Nona. A mega town center is being built there as well as an Orlando sports district. Lots of high paying medical jobs. There is also an Amazon fulfillment center there, which is good for jobs. My wife and I reside in Lake Nona.
It's not easy finding a property cheap enough in any of these 3 markets to be cash flow positive, even with the high rents. If you see one on the MLS, you will need to act quickly, as competition will surely be high. Maybe finding something off market would be your best bet at a good deal.