How To Know If You're Investing In A Good/Bad Neighborhood

Question

Hey!

If I'm investing out of state, or somewhere I've never been in person before,

Is there some way to figure out if I'm buying in a good or bad part of the city?

I could check google street view, but is there a way I could quantify this in some sort of way to be able to compare apples to apples?

I'm curious to see what some of the solutions are!

Cheers,

Charles Carillo · Answer

@Zackarias Aitchison

Here are some helpful websites:

• BestPlaces.net
• City-Data.com
• Census.govFactfinder.census.gov
• Factfinder.census.gov
• census.gov/programs-surveys/ahs.html
• data.census.gov
• StateLocalGov.net
• SpotCrime.com
• WalkScore.com
• DeptofNumbers.com
• DataUSA.io
• Bea.gov (Bureau of Economic Analysis)
• Bls.gov (Bureau of Labor Statistics)
• Indeed.com (Jobs)
• NewGeography.com
• NeighborhoodScout.com
• CrimeReports.com
• FamilyWatchDog.us
• Geometrx.com
• SocialExplorer.com
• Costar.com
• Colliers.com
• Irem.org
• Zillow.com
• Google Earth / Google Maps / Street View

• Factfinder.census.gov

I would research and drive prospective markets and neighborhoods before purchasing. Your broker will also take you more seriously when they know that you took the time to drive the areas you want to purchase in.

Scott E. · Answer

Just remember that most people in the area that you get in touch with are going to have an interest in pushing you towards a purchase. Whether that is a real estate agent, a title company, a property manager, etc. They make money if you move forward with a buy. So no matter how nice or trustworthy they may seem, always have your guard up.

Not saying it's a bad plan to invest site unseen. It's just much more risky.

Zackarias Aitchison · Answer

@Charles Carillo

Holyyyyyyyy man,

This is one hell of a list.

I've spent the past 30 minutes checking out these websites and there is such a wealth of information here.

Thank you so much man, I truly truly appreciate this

Scott E. · Answer

Maybe I'm paranoid, but I would never feel comfortable spending hundreds of thousands of dollars without physically putting my feet in that sub market.

Lee Ripma · Answer

There are not good or bad neighborhoods. There are just neighborhoods that meet your criteria and those that do not. I use the tools at Vestmap.com to find zip codes that meet my criteria and their DISCERN reports to vet individual properties. New investors try to look at too much and spin their wheels. You need to be able to vet a location in 30 seconds and dig into the 10% that might work.

Jonathan R McLaughlin · Answer

Great list, though never understimate the power of a phone call:

Call the local police and ask about a specific address/st and if there have been any issues lately. Doesn't work all the time but you might be surprised at the info you get. Public works guys will talk your ear off all daay if you strike the right tone and know cities well.

About your remark that "with enough research and knowing enough people in the area you can have all the information on a property as if it was in your own backyard".

This is simply, and dangerously, wrong.

You may get the necessary information, and it may be enough, but you should always be aware that you will have an element of uncertainty and plan accordingly. And who are those area people? Brokers who want to sell you something, contractors who want or don't want the work yada yada.

Zackarias Aitchison · Answer

@Jonathan R McLaughlin

Calling the police station or public works, I never thought about this, this is a great idea.

I think there will always be that element of uncertainty but I also feel that there's always going to be people you can talk to that are neutral to my investment decision who would be able to give me relevant local information that I can fact check against other locals,

But I definitely see where you're coming from, someone who profits from my decision to buy is not going to be the best source of reliable information.

I appreciate your input man! You make some great points, cheers!

Zackarias Aitchison · Answer

@Scott E.

To each their own!

But I feel with enough research and with knowing enough people in the area you can have all the information on a property as if it was in your own backyard.

I'd never buy a property without having all the data and all the people in the area assuring me that I'm making the right choice.

How To Know If You're Investing In A Good/Bad Neighborhood

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