What factor has had the most successful impact on buying a rental

17 Replies

Hey everyone, I know this question can be state or city specific but coming from someone who never did a deal before that is studying my market to find an edge I would like to know what has brought you guys or girls the most success with buying a rental property for the long term from a variable stand point like a location with either a good school nearby or a low crime area or a high population growth from millenials? Basically from the three options which would you look for first

Out of those 3 I prioritize a good school district first. In my area a good school district typically means a lower crime rate as well, but a lower crime rate doesn't necessarily mean a better school district.

Have you figured out what type of property you are hoping to buy? If not I'd try to narrow that down first.

@James O Nix There are several schools of thought on this subject. Better school areas usually attract both renters and home buyers. Lower crime rates attract everyone, but in recent years I have noticed that the single thing that stands out more than others, is a young vibrant renewal of city neighborhoods here in Pittsburgh PA. And I'm sure this can be found in Philly too. Look for areas with revitalization including business growth that have the amenities many millennials and others are looking for such as cool hangouts, modern housing, a vibrant nightlife, parks and city trails for outdoor activities combined with a strong economic growth. 

Here in Pittsburgh new investments by Google, Apple, Facebook and Autodesk is a true testament to the growing infrastructure here. And many of these firms are hiring talent of all ages certainly, but in the area of robotics, sciences and other technology fields, a lot of  young urban professionals are coming from CMU and need places to live close to these businesses. Reach out to people in the city you are considering for advice on buying into, including what areas of the city are more inclined to generate positive income. Whatever market you choose, look for those that know that market well and reach out to them. I wish you much success....Gary

yes @Matt Pastier I’m trying to buy with a duplex or triplex to house hack in. I just been analyzing deals right now at the point not really knowing what should I target outta the three factors so thank you for he advice it’s gonna be really helpful with trying to narrow things down 

thanks @Alex Deacon I understand to look for low crime rate and supply and demand but why look for an average income? Shouldn’t I look for an location where the income is above average so the likely hood of me finding an quality tenant would be higher? Because they make more money and cant get knocked into financial trouble from one thing happening that an average income earner can’t handle 

thanks @Gary Swank we actually don’t have any rei groups in Philly, at least to my knowledge so what I been doing is going to the tax auctions every month and networking with investors that way but one thing I would like to ask you tho is other then clearly seeing an area coming up how would I find out the areas that are due for upcoming retailzation? City planning or just asking around and seeing what different investors feel about specific areas? 

@James O Nix Yes, get with the people that know the area well to give you advice on upcoming revitalization. Whether that be from other Investors, Wholesalers or Realtors. City planning and County executive offices should have the pulse on what areas are being revitalized next. Also read local articles that talk about various city areas. The most important thing is to stay connected and increase your knowledge by utilizing multiple avenues. Doing so you will be able to invest wisely. Again, I wish you the best in your endeavors. 

Originally posted by @James O Nix :

Hey everyone, I know this question can be state or city specific but coming from someone who never did a deal before that is studying my market to find an edge I would like to know what has brought you guys or girls the most success with buying a rental property for the long term from a variable stand point like a location with either a good school nearby or a low crime area or a high population growth from millenials? Basically from the three options which would you look for first

 Punctuation is what I usually look for :P

Hi @James O Nix

Depends what kind of rentals that you are looking for. In general I look for walkable neighborhoods, good access to public transportation, and at least average schools. 

That being said almost everyone is looking for that criteria. I can't remember where I heard it, but somewhere I heard, "the riches are in the niches". So it really depends what you specifically are looking for because there is money to be made for those that deviate from the "good schools, good incomes, low maintenance" areas. 

Anthony Angotti, Real Estate Agent in PA (#RS335936)
(412) 254-3013

@Jay Hinrichs thanks for the referral And I hear and see nothing but great things from you. From the podcast to seeing you everywhere on the site 

@Steve Babiak thanks this is exactly what I was looking for.. I’m currently checking it out now 

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