Getting the right property

7 Replies

What would be better starting at the higher end of your price point or going with the average price for a rental property? Would it also be better to look in a neighborhood that is well established or a brand new neighborhood

What are your goals? What type of cash flow are you looking to achieve? I look for a 2% rental that is purchased at 70 cents on the dollar or less. That's my strategy, but you need to figure out yours before you can answer the questions you asked. Typically a new neighborhood will not have any house you can buy at a discount. I'm not saying it's not possible, but I personally wouldn't do it. Invest in transitional areas that people want to live in and where rents are increasing

Devan,

I'm new so I just wanted to make sure I understand what your saying. What precisely do you mean by 2% rental? Is that your ROI?

@Devan Mcclish  

Im still working something out to figure out what I  want to make on my cash flow. Im mainly on working on buying and holding right now. The transitional neighborhoods are the one I am mainly looking at right now.

@Dustin Neal , @Matthew Mason ...

There's a good explanation on this thread here on BP about the 2% and 50% rule as well as other people giving a lot of excellent info on analyzing buy and holds.

I don't think, personally, that focusing on higher or lower should be a major factor. It's a factor but if you find a good deal, whether be it in a high or lower end area, it's still a good deal.

The most important thing is to find a place you can afford that meets the 2% rule.

Originally posted by @Matthew Mason :

What would be better starting at the higher end of your price point or going with the average price for a rental property? Would it also be better to look in a neighborhood that is well established or a brand new neighborhood

 Matthew - great questions. You must be clear on these. until then you are not ready to buy!

Good luck studying :)

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