First Scouting Trip - How to get the best of it?

Question

Hello BT Team!

I am planning my first "Official" scouting trip for this coming week. And, I say "official" because I have spent thousands and thousands of hours scouting online and have gone on several trips to look for properties on my own.

What makes this one the Official One is that this time I have a defined goal with a strategy to follow. And, a real estate agent to show me the properties (believe or not this has been the most difficult part of this journey).

But, I still need your guidance...for the things that cant be learned here...I have my own questions, but I would benefit tremendously from your input as well :)

I must make the best out of this trip since I am looking little far from my backyard.

What to look for in the community?

What questions should I be asking the Agent?

What areas or characteristics should I be looking for?

What red flags should make me run?

How far from the busy area can I look for? Are little isolated lots with properties a no-no?

Should I inquire about anything with the local government?

Do you have a check list?

Looking forward to hear from you!

Yadira

Yadira Gutierrez · Answer

@Jabran Khan thanks bunches. Super helpful :) Enjoy the bootcamp!

Jabran Khan · Answer

Hi @Yadira Gutierrez! I am a brand new investor myself looking to purchase my first property in 2022. I have signed up for the Rookie Investor bootcamp by BiggerPockets, starts Jan 27. Couldn't wait till then so found a good 30 minute podcast by Bo Kim that explains how you select a location. (Bo mentions he too attended the BP bootcamp!). You can access the podcast here. Some things I learned from his podcast:You will have to tell the realtor what kind of location you are looking to invest in:Class A neighborhoods: More in suburb, high end, Great schools. Above 200K. Less Cap Rate		Class B neighborhoods: Some white collar folks 100-150K Good schools. Hits 1% rule.	Class C neighborhoods: Blue collared workers 80-120K in Indianapolis OK schools. Hits 1% rule. 	Class D neighborhoods: Low income areas, hood. Bad schools. Most Cap Rate

Hopefully you are scouting an area where the population is growing? You can cask the realtor what the reasons might be. Ask if there are new big employers moving into the area. Confirm the trends with the realtor for various areas you are scouting. Ask where the City/County taxes are going up (in some places it can change street by street!). Ask which areas the agent operates in and why. Which areas they stay out of and why? If the agent are investors themselves, ask where they invest.  Check out the crime stats (SpotCrime is a great tool) and school ratings (Greatschools / Zillow) to narrow the neighborhoods down. Good luck with your trip! I intend to take one myself one of these months. Just fining a ton of good info online and right here on BP.

Yadira Gutierrez · Answer

@Michael Dumler all excellent and valid questions. Definitely, helpful!  I am not leaving my home State.  By scouting I mean getting to know the markets first hand with the advice of a local real estate agent. My strategy and/or criteria = single homes to flip or buy and hold (hard money). Thanks for taking the time to reply to my post :)

Michael Dumler · Answer

@Yadira Gutierrez to be upfront, all the questions you are asking should ideally be addressed before taking a trip to view the properties. For instance, "what to look for in a community?" The question is entirely dependent on your criteria and if you are seeking A, B, or C class subdivisons. When you say your scouting trip, does this mean you are traveling out of state? If so, I would be mindful of your time and energy. Have you analyzed the properties and determind that they meet your criteria and cash flow accordingly? My overall check list when viewing a property consists of looking for major red flags, such as, damage to the roof, foundation/structural issues, holes in the wall, water damage, etc. Moving forward, I highly advise that you get crystal clear on your criteria before making the trip to view properties. Do you mind sharing your strategy to follow? Hope this makes sense and helps!