Would you buy a property on the same street as a liquor store?

Would you buy a property on the same street as a liquor store?

Investor · Southbury, CT · Member since 2014 · 39 posts · 9 votes

Hey everyone, another question today.  Just for a quick summary, I'm planning on using an fha loan to buy either a triplex or fourplex and live in one unit while renting out the other two or three depending on what I end up with.  I'm aiming for a buy and hold strategy, and want to keep the property and continue to collect rent when I move out.

I am currently looking at a triplex that looks nice from the outside.  I haven't seen the inside yet and I have no information about what the property makes in terms of rents and what the expenses are just yet, but I'm working on getting that information and seeing the inside as soon as possible.

I can only go off of what I have seen, and the neighborhood itself seems pretty nice.  The house I'm looking at doesn't appear to have any problems that I can see from the outside, the other houses in the area seem to be very well taken care of as well.

My biggest concern with the property so far is that there is a liquor store extremely close to the property.  How close close is extremely you might ask?  I was able to take the picture of the property below (Blue doors) without any zoom from my phone while sitting in the parking lot.

I'm concerned this might make for unruly neighbors or worse yet tenants, potential congestion on the street, and other situations that I might not even be thinking of.  It also doesn't help that the liquor store itself is the most unsightly thing on the street.  What do you think?  Am I reading too much into this, should I stay well away, or just be cautious of the situation?

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  • Colleen F.Pro Member
    Investor · Narragansett, RI · Member since 2013 · 8k+ posts · 4k+ votes
    11y

    This one is best answered by doing a  driveby or several during times when  a liquor store might be an issue. Also if there is a police log you might look to see if there are complaints in the area or against the liquor store. I would have that inform my decision . Also talk to people.    check into hours of operation too.

  • Nicole A.Pro Member
    Rental Property Investor · Baltimore County Maryland and Tampa Florida · Member since 2013 · 2k+ posts · 2k+ votes
    11y

    You'll most likely *not* have unruly tenants if your screening process is thorough. ;-)

    If this house has tenants already and you decide you want to buy the place but are not convinced the tenants are performing, then you could make your offer contingent on the seller removing the tenants (if they're lease is month-to-month).

    Take a drive in the evenings...especially tomorrow (Friday) evening, to see the activity. You quite possibly will see at least a few people standing around, but that doesn't mean this is a terrible rental.

    Look up rentals in the neighborhood. They might be listed on Zillow, Craigslist, or the like. This way, you'll also get an idea what the rent *should* be going for and then find out if the rent this property pulls in is on par or way below market rent.

  • Rental Property Investor · Durham, NC · Member since 2014 · 1k+ posts · 1k+ votes
    11y

    Yes, I would buy a house on the same street as a liquor store.  For that matter, on the same street as a church, school, Wal-Mart, bus route, Taco Bell, or just about any other establishment.  For me, a purchase is more about the financials than what I (or others) might perceive as "wrong" or "morally questionable."

    How is the neighborhood in general?  I don't know about your city, but in my area liquor stores are located everywhere from A neighborhoods to C- neighborhoods.  If you're satisfied with the neighborhood in general, and you don't necessarily have any compunction against owning a property near any business that attracts business traffic, AND if the numbers work, I wouldn't worry about being across the street from the liquor store.

    BTW, nice skylights!

    Good luck

  • Investor · Jonesboro, GA · Member since 2015 · 86 posts · 18 votes
    11y

    I agree with the others. The liquor store alone should not discourage you from the purchase. Not all liquor stores have unruly customers loitering and causing problems. As Nicole and Colleen said, do a couple of weekend drive-bys at different times if you are available to see what you would be dealing with if you move forward. Now is a good time, as the weather is warming up, and those will are likely to hang out outside of the store will start coming out. Good luck and keep us posted!!

  • Investor · Southbury, CT · Member since 2014 · 39 posts · 9 votes
    11y

    Thanks for the feedback everyone.  I'll drive by there tomorrow night and see what it's like then! 

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