Is area "X" good for rental property investment?

Question

Hi.How can I decide or analyse if a certain area is potentially good for buying rental property?

Jeremiah B. · Answer

Hey William,

That's a very complicated question. In short, you want to find places that:

1- can generate cashflow, meaning you could buy them retail and keep your head above water.

2- They have a solid economic outlook.

3 - They are unlikely to depreciate in value.

I did a blog post (actually, like 8 of them) on reviewing out-of-state markets some time ago; you're welcome to check it out here: http://www.biggerpockets.com/blogs/4117-my-out-of-...

With that said, the secret sauce to out-of-state investing is the team you work with, not the city you're in! There are literally hundreds of markets across that US that make sense to invest in - so finding the right team is far more important than the right market!

Happy hunting!

Gerald Harris · Answer

Jobs and a growing local economy

Here in the Charlotte NC area there are a number of companies that are growing here and coming this way. The demand for rentals is high in this location.

Also, Talk to 5 to 10 real estate agents/brokers. Talk to the agents in the offices that are the top producers and have a large network. They know

Darron Stewart · Answer

Step back and ask all the questions as if you are the tenant: would you live there, how are schools, crime, location to work, shopping, etc Also, is it rental friendly, laws favor landlord or tenant, are there a lot of rentals or own/occ, is it safe at night for you to do an emergency repair, etc. Also, search and see what rentals are bringing in and if the numbers work?

Is area "X" good for rental property investment?

3 Replies