Unexpected 1st Deal Speed Bump

2 Replies

A problem I'm having finding my first SFH deal that I didn't really consider is being able to evaluate C and C+ neighborhoods. I've been so lucky and fortunate to have parents that let me stay with them and when I finally did move out it was to an area not so dissimilar to what I was used to. I don't want to come off as classist or snobby because that's not at all how I intend this. How do you guys evaluate neighborhoods you might not prefer to live in yourselves?

Hey @Jacob Neville, I think the bigger question you need to ask yourself is what you are willing to do after investing in such an area. If you are already having concerns, the likelihood of you having long term success is markedly less than somewhere you'd feel comfortable... especially for your first deal. There are enough pitfalls and boogie monsters learning something new for the first time (ie. real estate investing,) that maybe it would be better for you to either:

  1. 1. Save more money and invest into a better neighborhood
  2. 2. Invest into a smaller deal in a better neighborhood (condo or townhome in B neighborhood vs SFR in C, etc.)

Wishing you all the best! 

I guess I just hesitate because all the videos I watch are like "If it doesn't cash flow $300 then I don't even give it a second look" (hyperbole but still...) and typically higher price the less cash flow. I just had those expectations before getting into the nitty gritty and now I'm finding it harder to come to terms with something that cash flows a lot less but pays down a bigger mortgage in an area I expect to appreciate, even though that is still markedly better than parking my money in REITs or the 6%-10% I hope to get in the stock market. Hopefully this is just a first time jitter. I am taking action to see places and got prequalified, so I'm trying not to overthink it before taking the big plunge