Author Topic: How do you find the best places to buy a rental property?  (Read 3260 times)

Miss. Takes

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How do you find the best places to buy a rental property?
« on: April 21, 2014, 12:28:29 AM »
I personally live in Maryland, but want the best chance of having a steady income from rentals. Should I buy something in DC? What about somewhere in Florida where people vacation? Or San Diego? Or Austin? How do you figure this out? Thanks so much!

arebelspy

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Re: How do you find the best places to buy a rental property?
« Reply #1 on: April 21, 2014, 07:12:48 AM »
This was my answer to a similar question in another thread:
Quote
Good question.

I start by identifying potential markets based on comments from other real estate investors.

Then I start to investigate those markets (demographics, economy, landlord laws, etc.) to narrow them down.

Once I've identified a market I'm interested in I start talking with local investors.  Nothing beats boots on the ground.  I identify potential neighborhoods and start digging further.

Basically think of it like those stupid maps you see on bad 90s movies where the FBI or whatever has someone on the phone and is like "keep him talking" and they "trace" the location, and it shows a map of the US, and then it zooms into a state, then zooms into a city, then a block, and then they're like "he's at the payphone at 94th street!" - I start with the macro view, identify and zoom in all the way down to the neighborhood and street view, and definitely connect with those who know the market.

Hope that helps!
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GoldenStache

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Re: How do you find the best places to buy a rental property?
« Reply #2 on: April 21, 2014, 10:46:19 AM »
DO NOT BUY A RENTAL IN DC...

My coworker has 3 and is hating life.  She was finally able to get a tennant out after 30 months of no payments.  DC tennant laws are for the tennant not the landlord and if the tennant knows what they are doing they can royally screw you. 

Her story...  Started eviction process for no payment, tennant filed an appeal (3 month review), appeal denied, filed another appeal- denied, tennant filed weather appeal (you can not evict if the weather is below a certain temp) appeal approved (Novembe-rish) Had to wait until spring to file another eviction notice, tennant claimed her disabled mother moved in with her (appeal) (6 month review) at 5 months into the review, filed another weather appeal (weather appeal approved)  Around January disabled mother appeal was denied (she did not even live with her) evicted last month.  Almost $60k in lost rent and $15k in legal expenses.  She can claim the loses against her other properties but that is not worth the headache.

MD is better than DC but VA is a better than MD.   

Ambition89

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Re: How do you find the best places to buy a rental property?
« Reply #3 on: April 21, 2014, 03:06:23 PM »
I live in Northern Virginia and was wondering the same thing...

GoldenStache

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Re: How do you find the best places to buy a rental property?
« Reply #4 on: April 21, 2014, 06:45:37 PM »
My neighbor owns 8 SFH's in Arlington, and is making a killing.  The hard thing is he bought all of the properties before 1970.  The risk/reward factor is too high in this area.  I have not seen a property that you could rent out and make a profit, hard to compete with all of the apartments in the area.     

dan@themadrealworld

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Re: How do you find the best places to buy a rental property?
« Reply #5 on: April 21, 2014, 07:25:46 PM »
My recommendation is buy in an area you are familiar with.  Don't buy more than an hour or so from home unless it is an area that you really like to visit all the time.

I couldn't find anything in the area where I currently live.  I ended up looking in a city an hour away, close to where I grew up.  I have bought more property, all in that same city.  I go out once a week on average.  I can visit family out there and I like the city.  I try different restaurants, etc.