Viewing Investments With the Right Perspective

[Annette Hibbler]

Early on in my investment career I had to learn to view properties from a new perspective. Accustomed to viewing them from as a "homeowner", I would often be tempted to turn down potential rentals simply because "I wouldn't live here".

That's not the right perspective investors should take. As an investor, the main concerns for me now are, is this place affordable for a family, is it clean, is the area desirable, how much can I rent it for? I also take a look at the area and make sure it's nearby grocery stores, shops, schools and transportation as these all meet the needs of renters and offer jobs in the area.

I invest in areas that are lower economically than my own neighborhood but still safe and desirable to many other families. Taxes are much lower in this areas. It makes me feel good to know I'm providing clean and decent housing. These are in areas that I personally, would not live in simply because I am accustomed to living in higher end neighborhoods and I can afford to do so.

Many investors invest in very low income housing such as in Newark, Hackensack, NJ, areas in Chicago and New York for this same reason. That's where they make the best returns. Those areas are a bit too industrial for me, but not for a working couple starting out who rely on public transportation to get to work and around town.