What I Look For In a Neighborhood When Buying Investment Real
Estate
I often get the question, "What do I look for in a neighborhood?"
My answer is always the same. "Easy. Value!"
I usually get a strange look, but it's true. In a neighborhood,
I am looking for clues to assess the value of the property,
plain and simple.
Well, maybe not so plain and simple, I know. So let me explain.
Normally, my rehab properties are not in the expensive areas of
town. It's rare that you'll find a rehabber meeting his or her
investment goals buying in the expensive parts of town. There
are generally fewer homes needing rehabbing and the fixer-uppers
that are there are going for top dollar. It's safe to say the
bulk of the investor activity is taking place in the mid-to-low
range of home prices.
That's not to say I wouldn't look in, or buy in, the swank
neighborhoods. Occasionally there are bargains to be scooped up
there, but not with enough regularity to focus on.
But, there are some places I definitely WON'T invest in.
I won't TOUCH the urban war zone. Let me describe what I mean.
"You don't go there because it's common knowledge that you
shouldn't. If you happen to wander in that area, you are given
suspicious looks by all the folks walking the streets and
sitting outside their houses. Your car definitely doesn't belong
there! It seems nobody takes any pride in their dwelling, and
trash seems to be a normal part of the d