What are the qualities to look out for when investing in an area?

4 Replies

If a buy and hold Rental investment -

1) right on a well traveled street, just put a sign out front if you have a vacancy.

2) close enough to your home or work location so you can keep a eye on it.

3) fenced property if in a urban area - offers extra level of security for families with kids that play in the yard. keeps people from stealing stuff of the porch and from cars.

4) the newer the better - will be more attractive to renters, don't get into something that had deferred maintenance for years

5) see if in a zone ( i.e. HUD section 8) that qualifies for rent assistance. I loved o see my tax money coming back to me via section 8 vouchers

 

I set mine by what I won’t buy.  My “no buy zone” includes...

- Built before 1950

- Up down duplexes

- Specific neighborhoods known as gang/drug zones - There is usually at least one in each city.

- I have a certain price I won’t exceed per unit for purchase and repairs per bedroom size.  This is market relative.




I look for an area that is family friendly and where I wouldn't mind living.  As for amenities, it really depends on the place as most of my places were bought in competitive markets, so fewer choices.  I still never bought a place that I couldn't see a good tenant being happy in though for a couple meant after renos.

Know who your target tenant is and look at places through their eyes.  Also know what you are getting into and what you have time for.  After I bought my places, I went through them and fixed things that needed repairing to reduce the problems once the tenant moved it.

Look for areas with low vacancy rates.