When looking for a "farm" area to invest what key factors do you look for?. Looking to buy fourplex with partner via FHA and use one unit for one year.
What criteria should be look for?.
@Abou C. There is a lot that goes into making these decisions to get them right and start on a solid path. It would take a long time to run through everything typing or even face to face at lunch or dinner, likely several meetings. Do some searching on here, get a couple books, read and research these types of things and get a grasp on what you are about to do etc etc. It's not as simple as not knowing and someone saying the corner of A and B streets is good, buy there. You need to be informed and familiar with your target market. I think you might not be ready yet, add some additional information to your tool belt and you will be able to ask more pointed questions for better responses!
Goof luck on your journey!
@Abou C. ,
If you don't plan on living there forever, I would seriously try to find something as close to your ideal investment (without considering your living situation) to the extent that you are willing to put up with it.
Generally, if you want higher cash flow, look at areas you would be less likely to want to live. If you're OK with lower cash flow, believe in the long-term increases, and can carry a lower cash flow properties, look at areas that you would be more likely to want to live in.
I chose the higher cash flow place, and wasn't as bad as I thought to live. But ended up moving because it wasn't the place for me. In the end, really glad I did that though! Bringing in cash flow every month!
Check out city-data.com for lots of demographic & other info about areas. Jobs, good commute, income levels, rent vs own percentage, urban vs more rural areas, population growth, etc are many of the things most will look into. For me, at the end of the day, cash flow is one of the most important features, as long as I'm comfortable enough with the area.. Good luck!
J. M. yes I agree, I won't live there forever. My business partner and I want to use the unit for ourselves until we can move out as well. But yes Cashflow is the goal I also understand it has to be in a blue collar area with growth potential and a safe area to live and do business. But yes City data will be good, also heading to the local police station to get more information of each area and major employers and shopping and entrainment areas as well.
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