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.
@John Alder I think it highly depends on the tenant you are targeting/the typical tenant for the area. There are many neighborhoods in the city of Pittsburgh that have great rents and high housing costs but are in terrible school districts. These areas have high concentrations of young professionals (without families) and college students who have no need for a good school district. Therefore, it doesn't really matter that the school district is lower quality.
Thank you very much Brendon! The area am targeting about has poor folks. I guess they wont have much choice on schools anyways since they dont have much have a choice i guess on schools. in addition, they may not have the deep pockets to pay higher rents for the areas that have great schools.
@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.
My 20 years with MFU is contrary to yours. Buying in a blue collar community and picking the market I wanted to serve (families with kids) has proven that the nearby schools were high priorities to my tenants choices - - some even moved into the community so as to be near said schools.
Now trying this approach in for example NYC might be insane, but blue collar families (not execs driving BMW's) has proven to me to be a win-win.
Russel, J Beard, Brendan. Great comments. Please keep them coming!