How important is being in a good school district?

[John Alder]

hi everyone

This is my first time investing in real estate properties. How important is it for multifamily properties to be attached to a good school? i am personally not going to be living there. the property am looking at has good rental history and i hear that there is always people ready to rent and the net cash flow is positive. 

[Russell Brazil]

@John Alder This is really a very market specific question.  In my market, a good school district will have a huge impact on the purchase price, but only a fractional impact on the rental price.  So for targeting a buy and hold cash flow property, the good school district will create a situation that is not good for cash flow.  However it will create a better situation for appreciation.