El Paso, TX · Member since 2016 · 7 posts · 4 votes
Hello Bigger Pockets community. I'm new to Real Estate investing and I would like to know from the community. when starting to invest in a new state how do you go about finding the best areas for rental properties and how do you go about rating what type of area and house it is. example I saw on the forum that someone will state it a B+ building in a C- area
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
I would talk to experts in that area. Property managers, investor-friendly agents, etc. They are the ones who work with investment properties all the time there so they can speak to the dynamics of how different areas pan out for rentals. I don't know how else you would do it without consulting experts in the area (being cognizant of course of who claims to be 'experts').
Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
9y
I would talk to experts in that area. Property managers, investor-friendly agents, etc. They are the ones who work with investment properties all the time there so they can speak to the dynamics of how different areas pan out for rentals. I don't know how else you would do it without consulting experts in the area (being cognizant of course of who claims to be 'experts').
Investor · Pinehurst, NC · Member since 2014 · 29 posts · 11 votes
9y
The hard part is, there's no hard and fast rules to defining A, B, C, D areas. Many have described them ("want to live there/would live there/etc") but there is no industry standard. I agree with @Ali Boone: local experts are the only way to get a real pulse on it if you're not personally familiar with the area, although I have heard one interesting shortcut (I want to say on one of the podcasts, though I may be mis-remembering that): Search to see what is closer: a Starbucks or a Dollar General Store. If it's a Starbucks, it's probably an A or a B....if it's a Dollar General...well...
Rental Property Investor · Olympia, WA · Member since 2014 · 777 posts · 744 votes
9y
hi @Christopher Wright! I see you were from NYC now in El Paso. My son did a similar journey, 2 years in Brooklyn and now a pediatric resident at El Paso Children's Hospital. We did a fair amount of research before he bought his home last summer on the West side - not far from the new Whole Foods (think Starbucks vs Dollar store!). We looked at schools, business growth and where millenials wanted to live (eateries, shopping, etc)
there's a lot of growth going on in El Paso and you can get a fair amount for your $ (compared to NyC or Seattle region). Watch for the purchase price vs rent ratio to avoid getting stuck. A lot of the inventory desperately needs updating. We found very few 2-4 units. There are some great prices on new construction for long term buy and hold if you are willing to go toward Anthony.