Property near fwy?

Question

Hi there BP Friends! I'm looking to buy my first income property (MFR) I found a decent deal in the area I want to invest in but it's near a freeway. The area is good and the price is low  likely because it's so close to the freeway. Wanting to know what you guys think about this? I'm afraid of turnover + appreciation of the property b/c it's so close to freeway. Would love to know your thoughts!

Jessica Riley · Answer

I have lived near a freeway and hated it. Similarly with loud streets or near loud trains. Imo the property value will be hurt by this "economic obsolence" and turnover will be high or residents may be cranky from not sleeping well.

Brendon Woirhaye · Answer

Look at appreciation over the last decade and how it compares to other areas not so close to the freeway.  Look at rent values near the freeway vs. some distance away.  Compare purchase prices near the freeway vs. further away - if the delta is large enough, it may be worth the higher turnover, but you need to do your research to know.

I have looked at properties near freeways (within hearing distance) but have never bought, they have a strike against them for the location in my mind.

Account Closed · Answer

It just depends on who you intend to market to, and if you can make money.  So, can you rent out this place for cheap enough that someone will rent it at a price that can make you money, even though it's close to the freeway?

People live in not-so-desirable areas, that are also close to their jobs, etc., because they are cheaper, etc.  So, can you use this property to fill a need to a certain pool of tenants - who will make you money and not damage your properties, etc.?

Katrina Razavi · Answer

Thanks @Brendon Woirhaye I looked at some comps in terms of rentals in that neighborhood for both near and not near the fwy and it does look like there's a bit (a few hundred/month) of a delta.

Thanks @Jessica Riley that's exactly what I was thinking. I don't want the tenants to be unhappy and be turning over. I like to put myself in my potential renters shoes and once lived near a busy street and it would keep me up some nights...let alone a big freeway!

Thanks for your feedback!

Property near fwy?

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