The Money Mustache Community
Learning, Sharing, and Teaching => Real Estate and Landlording => Topic started by: MustacheTiger on January 30, 2018, 08:59:48 PM
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All, I am looking to buy a home in an area that is currently cultivating several very nice new construction neighborhoods. I would love to scoop up one of these brand new homes that are very favorably priced and close to work. However, I strongly want to potentially rent out this property in the next 1-2 years. When I research the area on Zillow there are almost no rentals listed. Does this indicate a bad area to invest in rental propery? Or is it an opportunity to fit demand where supply is severly lacking?
Thanks in advance!
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When I research the area on Zillow there are almost no rentals listed. Does this indicate a bad area to invest in rental property? Or is it an opportunity to fit demand where supply is severly lacking? Thanks in advance!
Maybe. While you have identified the supply side of the equation, you still don't know about the demand side. Try posting a fake rental add on craigslist with your hypothetical property and see how much response you get.
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How much would the house cost, and how much would you expect to get in rent? That's usually the starting point...
-W
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Check more than just Zillow before you conclude there aren't rentals, too. Not every area has much coverage from Zillow, Realtor.com and the like, and even if houses for sale are covered well, that doesn't always translate to rentals. (Where I live is an example).
And yes, there's the demand side as well.