My partner and I are in Dayton and are currently developing our investment criteria before we jump in. We are looking at the pros and cons of investing in a more dense location closer to the city or a location in a little further away. This is what we're thinking through:
Larger pool of potential renters in urban areas, but may be more transient increasing turnover costs. May be able to get higher rents in urban areas, but there are higher costs such as property taxes.
Anyone have any thoughts or experiences or are we thinking through this too much?
Those are good questions, but you're probably thinking it through a little too much. Look at the historical occupancy of the property, and the neighborhood you are considering, no matter where it is. Different properties only a mile apart can be very different.
Taking good care of your tenants and your property will minimize turnover. The majority of people seem to move based on a few common complaints; The Landlord, Maintenance, The neighbors.
I have no idea if there is a difference in transiency between rural vs urban.
I've found that apartments overall, are more transient than a single family. Apartments do have more people who move in with the intent of only being there a relatively short time; Students, Divorce, first apt, etc. However, apartments are not automatically high turnover. I've had some in the past where tenants had been there for over a decade.
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