How to find High Rent Areas?

Question

How do you determine if the area is actually in demand prior to purchasing a house? I am looking at this property here:

It is located in 2421 NW 29th ST Cape Coral, FL 33993....is there a website that you guys go to, to do research on the demand of a particular area? Do you look for the job opportunities available in the city? Types of schools? How close they are to grocery stores, gyms, etc.?

Stetson Miller · Answer

@Allen Wu Very much so, particularly if purchasing in the Northern side where new construction can still be found under $300,000. Similar priced properties can be found at a $100,000 premium traveling 15-20 minutes South on the bottom side of Cape Coral, so it's very reasonable to believe that these new construction properties will reach those levels in the not so distant future

Allen Wu · Answer

@Stetson Miller

Is Cape Coral still a good long term appreciation area?

Stetson Miller · Answer

@Corazon B. Sounds like Lehigh is the better fit to me!

Corazon B. · Answer

I mean if I can do both long-term appreciation hold AND some good cash flow, that will be great! :) But I'm looking to most likely either pay in cash or pay at least 75% down for the property.

Stetson Miller · Answer

@Corazon B. Finding new and good restaurants is as simple as browsing through the nearby restaurant list on Google, but driving the surrounding area is always preferable. Regarding the Cape Coral vs Lehigh Acres debate, this is going to completely come down to what you're looking for in a property, as both have huge pros and very few cons that must be considered against each other. For example, decent cash flow is pretty difficult to find in Cape Coral right now. In Lehigh Acres, the cash flow is still pretty readily available, and appreciation potential can still be forecasted pretty high if purchasing in the right areas. Are you more interested in a long term appreciation hold, or a property that's going to cash flow immediately?

Corazon B. · Answer

Is Cape Coral still good for investment though? Or Lehigh Acres a better option?

Wayne Brooks · Answer

@Corazon B. @John Thedford owns several houses in the cape and is a broker/property manager there.

Corazon B. · Answer

Driving the area to get a feel of the tenant type is a good idea! :) I will definitely do that. As far as knowing if there are new shopping locations and anything new being built that may impact current tenant quality, what is the best way to find this out? Stetson, I can probably link up with you soon since you live in the Ft Myers area. :)

Stetson Miller · Answer

Hi @Corazon B.,

Assuming you're talking specifically about rental demand and not buying demand, although similar in most aspects, you're right on target with what to look for. In addition to these things, some others I would suggest looking for would be:

-The rate of new construction (both residential and commercial) in the area. Is there new shopping locations? Good quality and nicer restaurants nearby that will draw higher quality tenants? Anything new being built that may significantly impact your current tenant base and/or quality?

-Actually driving the area to get a good idea for what types of tenants will be applying. Is this an area where families with small kids would like to live? If so, school choice and quality become a much bigger factor to consider

-Talk to a local agent to see how many and how recent rental comps are in the same neighborhood. Ideally, you would like to see many comps in recent months, which would be the easiest way to find high demand areas with established renter bases. I would be happy to help with this!

How to find High Rent Areas?

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