Buying a property backed up to the freeway

7 Replies

Anyone have experience with buying a rental property that backs up to a freeway?

I'm currently looking at a deal that looks good but the backyard is backed right up to the freeway. How have you seen this effect rent, length of tenure for tenants, resale value, etc.?

Is there any privacy screening of bushes/trees or is the view in the back literally freeway? We have one property that is near a freeway but most people have no idea because there are so many trees and bushes that you don’t see anything but a wall of green. We haven’t seen any issues with renting the place out and have folks offering to buy that house almost weekly.

So, even if the property backs up to a freeway, see if there is a way to “disguise” that fact...if there is, that could be a nice value add. Also, consider the neighborhood/tenant class and overall quality of the property’s other features. In some areas being near a freeway less of a problem than others.

It might depend on the view as well as noise. You could also look at comps on the same street to see if they tend to be lower than the surrounding area. 

John Thedford, Real Estate Agent in FL (#BK3098153)
239-200-5600

@Brandon Pelfrey It depends on the noise level, but if there is a meaningful noise level, you should be buying at a discount that reflects it.

Don't forget that when the time comes, it will also put a dent in resale value.

Charlie MacPherson, Real Estate Agent in MA (#9532146)
781-412-4151

Ive owned a property that backed up to a main road. It affected the value by about 5% compared to properties just across the street.

Russell Brazil, Real Estate Agent in Maryland (#648402), Virginia (#0225219736), District of Columbia (#SP98375353), and Massachusetts (#9​0​5​2​3​4​6)
(301) 893-4635

@Ericka Grant Thanks for the response.

There is a large 15 foot high cement barrier wall, so it's pretty obvious that it is although you can't see anything at all. When you're outside at the property you definitely hear it but when you're inside you can't. To your point though, maybe planting some shrubs along the back property line would help.

I think is all in the numbers. Depending  on the noise level, the view, it will affect the marketability of it, just figure those  factors that in ur opinion will make it harder for u to rent it. Now is kind of an art rather than a science to put numbers on those items but do the base U can based on experience. Many investors figure bout 10% for vacancy. Work out ur numbers based on 20% vacancy, that will give u extra cushion for the extra work needed to rent it. In my opinion many renters will expect a house back up to the freeway to b cheaper.

I think is all in the numbers. Depending  on the noise level, the view, it will affect the marketability of it, just figure those  factors that in ur opinion will make it harder for u to rent it. Now is kind of an art rather than a science to put numbers on those items but do the base U can based on experience. Many investors figure bout 10% for vacancy. Work out ur numbers based on 20% vacancy, that will give u extra cushion for the extra work needed to rent it. In my opinion many renters will expect a house back up to the freeway to b cheaper.

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