Learning an Out of State Market - How to Know Which Neighborhoods

[Davis Doan]

Hi everyone. I am trying to get out of the analysis paralysis stage, even during these crazy times.

I've read the Long-Distance Real Estate Investing Book and the Rental Property book from BP. I've saved up my target amount for a down payment. I know I want to invest in out of state SFH 3bed/2ba in B Class neighborhoods for cashflow somewhere in the mid-west.

I've looked at cities population growth, job growth, median house values, crime rates, if its landlord friendly, vacancy rates, ect.

Now I've been analyzing just two houses a day on Zillow from my target cities( Kansas City, MO, OKC, Indy, and Columbus) to build a habit.

But now I realize I have no idea what neighborhoods are good and its a bit overwhelming as there are so many neighborhoods in cities that I have never been to. I've found guides by James Wise for some of the cities on my list, but these are just names on a list to me and I don't feel like I really understand enough of the neighborhoods to confidently make an investment.

How did you go about learning the neighborhoods for a state you've never been to?

Thank you.

[Jean Zipagan]

@Davis Doan 

Rentometer: As a starting point for doing research in Indy but also other areas is rentometer or hotpads/Zillow rentals. As you practice and analyze deals, get an idea on what the rent ranges are like in the class A/B/C/D. 

Trulia: The crime map on Trulia is also a handy reference but not always the most accurate since there are a couple blocks that are class B adjacent to some solid C/Ds. I take it with a grain of salt. 

Airbnb: Another fun way I've also tried are scouting the city on Airbnb. Class A/B areas are the more popular places for Airbnb's and their prices should reflect that. 

Google map: The street views quickly get outdated so don't rely on those entirely, but getting an idea on what businesses are around and the quality of schools in the area is helpful. 

For Indy in particular, it can be tricky to find a turnkey ready 3br 2Ba and still cash flow significantly (though I think there are still plenty of areas where a BRRRR would work nicely). Areas outside of Indy 465 loop like Beech Grove/Franklin township/Greenwood, etc. can be a safer bet and often still have a good amount of 3B2Ba. Within Indy city proper, I've found 3b 1ba more popular of a layout. I would suggest not limiting your search with the 2ba. 

At the end of the day, you'll probably need a local kickass realtor to give you the real lowdown once you've narrowed down your target cities.