Long distance investing - how to get to know an area

[Maricruz Romero]

Hi BP,

I am looking to invest in the Raleigh Research Triangle area in North Carolina. I've visited last week and got to see the area and met with some investors and feel like it is a good area for me to get started. I've learned about areas in which people I have met said expect growth as the Research triangle expands. I am back in NYC and plan to look into some of these areas so that I can concentrate my efforts into 2-3 specific areas during my deal search. I know I am looking for population growth, job growth and determining whether the neighborhood is safe.

For those who have experience investing in long distance RE, what are some sources you use to determine what specific areas / neighborhoods to focus on? How have you gotten comfortable with the area you plan to invest in? Do you go as far as focusing in specific neighborhoods or start by selecting a general county/town?

Thanks in advance for your responses!

[David Barnett]

@Maricruz Romero I invest outside of my home market.  I've made multiple trips to the areas where I invest and found it extremely helpful to WALK the streets and the neighborhoods.  I find that I learn a lot about the neighborhood by walking and not driving down.  My experience is that if you are driving, you are moving too fast and can't stop and see what's happening street by street.

I would also talk to a few property management companies and get their input on the neighborhoods.  They would very likely know where to invest and where to stay away from (outside of other investors).  I'm a big fan of also looking at zillow and see what other landlords are asking for rental properties.  It helps to create an idea of what going rents are in the areas that you are thinking of investing in.

My investment strategy is focused on specific neighborhoods within the city.  I have two specific neighborhoods (and certain sections of the neighborhood) that I know very well and can determine if it's a good deal or not.  It's very helpful to know what is going on block by block.

Happy Investing.