Finding an area to invest

2 Replies

When you are thinking of whether or not to invest in an area are you only really concerned about cash flow for a rental/buy and hold property? For flips, are you mainly concerned about cost, cost to renovate, and resale price? 

Do you look at other metrics or items when considering an area? Trying to figure out if I am looking at too many metrics (like population growth, median income, schools, crime rate, etc.)

@James Brunetto, jr For rental properties cash flow is #1 for me but also making sure it’s in a good area. If the crime rate is high where it’s not safe to walk around at night, then I don’t want to have a rental there. I’ve only invested in one city so far but I did consider growth of that city, making sure it’s a city where new jobs are coming into and people are moving there. I didn’t want a small town because then you have a smaller pool of tenants and companies usually don’t open new jobs in those smaller towns. If you haven’t chosen an area yet, I’d say find the city/area first based on growth and safety, then go looking for properties. I think if you’re looking for properties without being focused on a particular area then it makes it much harder. I invest in Jacksonville and the city is so huge land wise that I’ve only really researched a handful of neighborhoods in the past year. And that’s looking at properties almost on a daily basis.

@James Brunetto, jr

  For buy and hold properties I absolutely look for cash flow. 

  For areas I like for growing population and a stable economy. What are the top companies there and what’s going to keep people going there. 

  Then I go deeper and look for nice neighborhoods. If you’re investing out of state you’ll need a team you can trust even if you plan on visiting the area before purchasing. 

  Hope this helps!

- Mike