Investing in older properties that are next to new buildings

4 Replies

Just wanted to get some insight from people with experience. I am looking at an area with other homes that need updates but there are new apartments being built close by. If I pursue these homes, am I going to have an uphill battle and what things should I be including in my rentals to make it more attractive?

@Jonathan Stevens   are you comparing SF to apartments?   it is a different market.  Those luxury new apartments of course will rent at a different rate then a SF home. SF homes tend to attract families, couples, people who want their own uninterrupted outdoor space so patios are nice.  Fences are nice.  Updated and no funky layouts. 

Originally posted by @Colleen F. :

@Jonathan Stevens  are you comparing SF to apartments?   it is a different market.  Those luxury new apartments of course will rent at a different rate then a SF home. SF homes tend to attract families, couples, people who want their own uninterrupted outdoor space so patios are nice.  Fences are nice.  Updated and no funky layouts. 

I am looking at a combination of single family and triplexes in the same neighborhood. 

 

Better to buy the crappiest property on the best block than the best property on the crappiest block!

Best to comp finishes as best as you can to the new property and price at a discount (15%-25%) depending on amenities offered and present your property as a budget friendly alternative!

Also a triplex/ duplex doesn't compete with those big complexes.  You can comp the finishes and in SF and  duplexes you can consider yards an amenity. Less so with triplexes.   Parking is also a good comp.