Best way to analyze an area for investing?

[Josh Barnett]

What is a good way or tool to analyze an area (crime, schools, cost of living, real estate laws, taxes) to narrow down the area I want to invest in?

Background:

I am new to BP and real estate investing and I'm starting out by listening to the podcasts and reading the forum.  I'm in the military and stationed overseas.  When I come back to the states in a year and a half, I plan on buying my first house for myself and additional real estate for long term investment property. 

I do not know where the Army will send me when I leave Korea, but the areas that would be my top 5 are: (no particular order)

Fort Eustis, VA

Fort Carson, CO

Fort Hood, TX

Fort Lee, VA

Fort Lewis, WA

There is method to my top 5 based on the job I need next, the areas that I like, and the probability of staying at that location for an extended duration (need 6 years stability).  They all have pros and cons, but I want to weigh in with analysis based on real estate investing in order to chose an order or make a better decision.

[Natalie Schanne]

Josh Barnett - You're thinking too far ahead. As soon as you get your definite orders to X area, reach out to 2-5 real estate agents (different companies) in your new home area. Schedule a 15 min call. Tell us you're moving to the area and you'd like to start receiving property information on houses in your price range. Ask for advice on neighborhoods, schools and commuting. Ask about recent appreciation - where are the most desired areas? Where are sellers often getting multiple offers? If you're considering house hacking, ask them to also send you 2-4 unit multifamily listings (duplex+) or large 3+ br 2+ ba homes if you'd rent out spare rooms. ACT uninformed on the first call (regardless of if you just got off a call with a different agent) and ask lots of questions. Learn.

Also call USAA or other mortgage lender to get preapproved for a mortgage before you call the agent, so you know your budget.

See how helpful the person is and how they interact with you while you're remote. I met some agents who would do video tours for overseas buyers who were ready to make offers. You could buy the house before you arrive (depending on your risk tolerance).

Then watch your emails and identify properties you like. You'll get a sense of price and value in different neighborhoods. 200k buys you a 1 br 1 ba condo here but a 3 br 2 ba house here. Engage with the agents intermittently without wasting our time unnecessarily if you have questions about a property or the transaction process.

Try to engage with investors and investor friendly agents in your target area. Ask where they invest. The best deals are usually the ugly houses that need 30-60 days of renovation work before you'd want to move in.

After you find some properties you may want, pick the most helpful agent to tour you through several properties and send in the purchase offer. With financing, you'll close 30-45 days later and get keys.

Do not buy a property without checking market comps. Do not buy a property that hasn't been inspected by someone you trust.

In my area, investors seeking high returns tend not to buy in the A class areas with great schools. (Homeowners pay too much for homes here... so they can have high appreciation returns but not 'cash flow'). Savvy Investors never require appreciation (home price increasing) to make their investment work.

The best deals (high ROI) are usually on the periphery of the excellent / high price areas.

Good luck. Let us know how it goes.