I was wondering how an out-of-state investor would know where the rental "areas" are in a potential location. Like what if I bought a property in a location that there were few renters? Just wondering what the key indicators are, I'm assuming that part of the investor's due diligence would be to find that out beforehand, what are some good resources? Talking to locals? Thanks BP.
Actually, an area with few renters might even be more in demand than an area with mostly tenants, because it's a more stable environment, when it's mostly home owners.
I think that you need to look at the actual neighborhood and learn the particulars, instead of making assumptions based on statistics.
A few ways that I have found effective:
1. Call area property management companies and ask about the area and whether they have any rentals (or experience with rentals in the past) in that area.
2. Try to connect with some investors in the area. The experienced ones probably either have knowledge of the area or know of someone who has properties in the area that they could connect you with.
3. Try to grab census data. You might be able to find info on owner-occupied homes vs total dwellings in the area which should provide a nice snapshot of rental demand in that particular town.
Thanks thanks for your replies guys! Just now seeing this for some reason, very helpful advice.
My best technique is to post a CL post in your desired area. Set the rent you hope to get and indicate pictures are coming soon. Describe the house you intend to buy (3/2) and wait and see what responses you get. I've done this once with good results which led us to our first (and only) purchase. When we ended up purchasing the property and had a real CL post the same interest and traffic was received and we found some great tenants.
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