How to research properties

Question

I will be honest that I am yet to be invested in real estate. I primarily have invested in index funds to this point. I am just now starting to learn some new concepts and open to real estate investing. It seems that the Midwest still has some cash flow opportunities. I’ve read some forum posts about finding opportunities in “A and B” neighborhoods. How do you research these neighborhoods? I know the criteria that encompasses what makes a neighborhood high or low quality but having trouble practically finding affordable housing in these neighborhoods.

Steven Foster Wilson · Answer

If I were you I would find the area in which you want to invest. I would reach out to a local realtor. They will be able to help you answer a lot of these questions and you can get on their email list. By doing this you will be able to start to better understand the market, analyze deals, and realize when something is a good deal. I always say it is about the numbers. If the numbers line up then it’s a deal. https://www.calculator.net/ren... this is the calculator that I used to run my numbers. I noticed you said you’re interested in the Midwest. If you have any interest in Ohio like Columbus, Cincinnati, Cleveland, or any tertiary markets, I can definitely help with that. I invest and broker deals everyday.

James Wise · Answer

Saw some Cleveland discussion here as one of the Midwest markets for you to look it. Easiest, cheapest and quickest way to get a run down of Cle is to read The Ultimate Guide to Grading Cleveland Neighborhoods. I see a whole bunch of out of state investors out there just running to the cheapest deals in Cle and not realizing what it is that they actually bought. This guide points out what is what so you don't end up doing that.

Shane Kelly · Answer

If you're a newbie real estate investor as you say, and you're looking at an out of state market, you should definitely be leveraging someone else's knowledge. Talk with Realtors and other investors in the market you're looking at to gain as much knowledge of the area and market as possible. As for actually finding the deals, as them for how they're doing it to. Agents like myself can connect you with the MLS to search for deals and often have connections to brokers and wholesalers for off market deals as well.

Nick C. · Answer

Your first investment being out of state is risky, there's a lot that could go wrong. Your best bet is to depend on someone local to steer you in the right direction. Hopefully you can find someone via referral, or maybe someone here on BP who is local to the area you want to invest in. C/D neighborhoods always look better on paper, pro forma style, but A/B tend to be safer bets to actually perform.

How to research properties

Most Popular Reply