How do YOU grade/rate a neighborhood?

Rental Property Investor · Discovery Bay, CA · Member since 2017 · 26 posts · 15 votes

One thing I’m struggling with is finding the right neighborhood to invest in. Or when I find a property, confirming if the neighborhood is decent enough.

Any tips?

Thank you!

5 Reply

85 views

Most Popular Reply

JD MartinBusiness Member

Moderator

Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes

If you are going outside of areas that you are not familiar with, then you either have to use statistics or boots on the ground that are familiar with the area. You can use crime, demographics, housing age, proximity to employment/shopping/attractions, etc. If you are familiar with the area, it gets pretty easy as you drive around. Start with the premier neighborhood and see what it looks/feels like. Then compare other neighborhoods to that. Look at rents in the neighborhoods you think are premier vs. others. ETC.

One thing I do when I drive an area (though I know my own area in my sleep): I drive around at 1 or 2 PM on a mid-day weekday, like a Tuesday or Wednesday. If I see a lot of able-bodied people (mostly men) hanging around the houses on porches, corners, etc. at that time, I'm unlikely to consider it much further.

Podcast Guest on Show #243

Skyline Properties

View Page

12 Reply

See this reply in the discussion

35 Replies

Jump to latestLatest

Sort by

JD MartinBusiness Member
Moderator
Rock Star Extraordinaire · Northeast, TN · Member since 2015 · 10k+ posts · 16k+ votes
6y
If you are going outside of areas that you are not familiar with, then you either have to use statistics or boots on the ground that are familiar with the area. You can use crime, demographics, housing age, proximity to employment/shopping/attractions, etc. If you are familiar with the area, it gets pretty easy as you drive around. Start with the premier neighborhood and see what it looks/feels like. Then compare other neighborhoods to that. Look at rents in the neighborhoods you think are premier vs. others. ETC.
One thing I do when I drive an area (though I know my own area in my sleep): I drive around at 1 or 2 PM on a mid-day weekday, like a Tuesday or Wednesday. If I see a lot of able-bodied people (mostly men) hanging around the houses on porches, corners, etc. at that time, I'm unlikely to consider it much further.
Podcast Guest on Show #243
Skyline Properties
View Page
12 Reply
Brett McManus
Minneapolis, MN · Member since 2020 · 94 posts · 161 votes
6y
Hi @Eric Kulling, I am relatively new so take the information as you will however, I am working through a similar process and wanted to share my thoughts.
1) The first thing I did was hop on the MLS and start crunching numbers on properties all over the place. After a 100 or so I was able to create themes pretty quickly for the neighborhoods that worked for my numbers based on taxes, rent potential, and ultimately cash flow.
2) I then created a list of neighborhoods, got in my car, and began driving around to see what they actually looked like boots on ground. How nice were cars parked on the streets, are there contractors/workers in the area developing properties, sold signs on houses, etc.Idea being that I want to buy in neighborhoods people are actively moving into, fixing up, and are attractive to potential tenants who like to own/take care of nice things (cars).
Definitely open to the thoughts of others on this strategy.

2 Reply
Eric Kulling
OP
Rental Property Investor · Discovery Bay, CA · Member since 2017 · 26 posts · 15 votes
6y
@JD Martin
Makes sense to me. Thank you!
I’m looking at long distance. Same idea? Discuss with local REA and PM?
2 Reply
Eric Kulling
OP
Rental Property Investor · Discovery Bay, CA · Member since 2017 · 26 posts · 15 votes
6y
@Brett McManus
Great advice. Way to grind!
1 Reply
Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
6y
A (best), B (just under the best), B-/C+, C, C- (not good, but not scared for your life), D (scared for your life)
[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
Website View Page
4 Reply
Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
6y
@Eric Kulling If you're considering out of state I'd strongly recommend Columbus, OH here. Great appreciating market, midwest prices, and lots of strong attractions driving people to move here. I have the entire city mapped out as A -> C- if you'd like to see.
[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
Website View Page
6 Reply
Eric Kulling
OP
Rental Property Investor · Discovery Bay, CA · Member since 2017 · 26 posts · 15 votes
6y
@Marc Rice
Wow, that’s exactly what I’ve been searching for. I’d love to see the map. I haven’t considered Columbus OH yet, I will now.
Thank you!
1 Reply
Nathan W.
New to Real Estate · Columbus, OH · Member since 2020 · 15 posts · 18 votes
6y
Originally posted by @Marc Rice:
@Eric Kulling If you're considering out of state I'd strongly recommend Columbus, OH here. Great appreciating market, midwest prices, and lots of strong attractions driving people to move here. I have the entire city mapped out as A -> C- if you'd like to see.

You don't think Columbus has even 1 D area?

2 Reply
Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
6y
@Nathan W.
Originally I did, but after really thinking through what a D class neighborhood means I don’t think Columbus has any. Even in the worst neighborhoods I would feel uncomfortable walking though but wouldn’t feel threatened for my life due to gang violence or insane amount of crime. I’m sure some worse cities like Detroit or Compton could have those D class neighborhoods where you’d be concerned for your life to walk through but I have not found that in Columbus. That’s why I grade it a C- class neighborhood and not a D.
Good question though!
[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
Website View Page
2 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Nathan W.:
Originally posted by @Marc Rice:
@Eric Kulling If you're considering out of state I'd strongly recommend Columbus, OH here. Great appreciating market, midwest prices, and lots of strong attractions driving people to move here. I have the entire city mapped out as A -> C- if you'd like to see.

You don't think Columbus has even 1 D area?

I think there were D areas in Columbus 5 years ago. Not anymore though

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
2 Reply
Steven Foster Wilson
Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
6y
Originally posted by @Marc Rice:
@Nathan W.
Originally I did, but after really thinking through what a D class neighborhood means I don’t think Columbus has any. Even in the worst neighborhoods I would feel uncomfortable walking though but wouldn’t feel threatened for my life due to gang violence or insane amount of crime. I’m sure some worse cities like Detroit or Compton could have those D class neighborhoods where you’d be concerned for your life to walk through but I have not found that in Columbus. That’s why I grade it a C- class neighborhood and not a D.
Good question though!

Maybe it’s my middle class suburban blood, but every time I drive through Linden and Hilltop I feel fearful for my life!
1 Reply
Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
6y
@Steven Wilson
South Linden and Hilltop are definitely the diciest, by the Casino of Lincoln Village is similar. I will say I have not spent too much time over there walking just driving. It’s all subjective, gotta love real estate !
[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
Website View Page
1 Reply
Nick Pawlowski
Brunswick, OH · Member since 2020 · 14 posts · 5 votes
6y
@Marc Rice I would love to see that map! I’m from brunswick Ohio and interested in the Columbus market.
1 Reply
Marc RiceBusiness Member
Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2018 · 2k+ posts · 1k+ votes
6y
@Nick Pawlowski I'll message you
[email protected]614-363-2787
Marc Rice | Investor Friendly Agent at Reafco Tailwind Team574 Reviews
Website View Page
2 Reply
Account Closed
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
6y
@Eric Kulling
It’s easy to get caught up in the A-D grading, but the problem is that’s it’s very subjective. Online data will only get you an idea of what an area is like. Go to your market and drive around. When you’re in the hood you’ll know it.
2 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Nick Pawlowski:
@Marc Rice I would love to see that map! I’m from brunswick Ohio and interested in the Columbus market.

Here is a good sheet to get you started in Columbus, Ohio. Please note that this is very subjective and not necessarily what I think. I got this from a local hard money lender.

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
0 Reply
Nick Pawlowski
Brunswick, OH · Member since 2020 · 14 posts · 5 votes
6y
@Remington Lyman is there any way to send that to my inbox? I am unable to see any of the text.
1 Reply
Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Nick Pawlowski:
@Remington Lyman is there any way to send that to my inbox? I am unable to see any of the text.

Yes, but you will need to connect with me

[email protected]614-541-8475 Podcast Guest on Show My Job Laid Me Off, So I Replaced My Salary with Rentals
Reafco512 Reviews
Website View Page
0 Reply
Nick Pawlowski
Brunswick, OH · Member since 2020 · 14 posts · 5 votes
6y
@Remington Lyman done
1 Reply
Nick Pawlowski
Brunswick, OH · Member since 2020 · 14 posts · 5 votes
6y
@Marc Rice okay great thank you
1 Reply
Maria D'Aura
Real Estate Agent · Livermore, CA · Member since 2016 · 173 posts · 74 votes
6y
@Marc Rice
I’d love to see your map.
1 Reply
David Avery
Flipper/Rehabber · Phoenix Arizona · Member since 2020 · 1k+ posts · 686 votes
6y
There are always pockets in neighborhood that are good and bad, sometimes 2 houses on a block are rotten apples and the rest of the block is fantastic.
I would drive around and get a feel of your desired area's.
If you have an agent, they will have a good feel also.
Duplex area's can be so much different than single dwelling.
Different tenant also!
It depends on your investment, I think area is a more of a concern with
Single house, Four plex is a different . Different tenants.
Spend a few hours driving around, seeing options and when you get your
property ready to rent. Have your rent high, you will still get several applications!
1 Reply
Rachel S.
Investor · Los Angeles, CA · Member since 2019 · 127 posts · 63 votes
6y
Originally posted by @JD Martin:

One thing I do when I drive an area (though I know my own area in my sleep): I drive around at 1 or 2 PM on a mid-day weekday, like a Tuesday or Wednesday. If I see a lot of able-bodied people (mostly men) hanging around the houses on porches, corners, etc. at that time, I'm unlikely to consider it much further.

That's so judgmental. They might be independently wealthy! :-D

3 Reply
Jesse Morrell
Flipper/Rehabber · Tyler, TX · Member since 2019 · 58 posts · 41 votes
6y
@Eric Kulling ultimately I judge a neighborhood by the numbers but I look for pride of ownership, like well maintained lawn and landscape.
1 Reply
Mike Dymski
Investor · Greenville, SC · Member since 2016 · 5k+ posts · 13k+ votes
6y
Median household income by zip code is a good starting point. 30% of that figure helps gauge rental rate qualifications of the residents. Some areas require more hands on street by street analysis.

https://www.incomebyzipcode.co...
2 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.