Exploring New Neighborhoods for Buy and Hold

Exploring New Neighborhoods for Buy and Hold

Rental Property Investor · Dallas, TX · Member since 2018 · 93 posts · 28 votes

Hello fellow REIs!

I am trying to explore new neighborhoods for 'Buy and Hold' and was wondering if you could help me with my research. What are the factors I should consider? I want to stick to class B neighborhoods for now. 

I am a licensed real estate agent so I can pull sales and rent CMAs from MLS but not very sure of others. What are the things I should look for in a new neighborhood and how do I get that info?

I think crime rate, school district, location (proximity to freeways, shopping, grocery) etc. is important, is there anything else I should look for?

Any help will be appreciated!! 

thanks,

priyanka

Real Estate Investor and Agent in Dallas, TX

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  • Real Estate Investor · Milford, PA · Member since 2014 · 395 posts · 299 votes
    7y

    @Priyanka K.

    When investigating new markets I look for things like 

    population growth (upward over the last 10 years)

    Job growth 1% or greater

    Unemployment =< national average

    per cap income 20K

    Household income 3 times annual rent

    number of households (in comparison to other markets) 

    Favorable government policies (is the local government looking to attract business) 

    those numbers will give me a sense of the macro market. Then I look for the micro

    Crime states (block by block) <national avg. I know what my neighbor hood is and compare it to that.

    School ratings B

    proximity to amenities (walmart/home depot/ chic-fil-a)

    When they all check out it's time to get feet on the ground. Either yours or someone you can trust. There are things you can only find out by being in the area. Which schools are the best ones with in the district. What side of the tracks / hwy / river do you want to live on? Some areas are block by block. Does it flood during heavy prolong rain. Are you in a flight path. All sorts of things that aren't online. 

  • Dallas, TX · Member since 2016 · 1k+ posts · 745 votes
    7y
    Originally posted by @Priyanka K.:

    Hello fellow REIs!

    I am trying to explore new neighborhoods for 'Buy and Hold' and was wondering if you could help me with my research. What are the factors I should consider? I want to stick to class B neighborhoods for now. 

    I am a licensed real estate agent so I can pull sales and rent CMAs from MLS but not very sure of others. What are the things I should look for in a new neighborhood and how do I get that info?

    I think crime rate, school district, location (proximity to freeways, shopping, grocery) etc. is important, is there anything else I should look for?

    Any help will be appreciated!! 

    thanks,

    priyanka

    Real Estate Investor and Agent in Dallas, TX

    We are big fans of driving neighborhoods, we like areas that have some building going on.  Tear Downs, rehabs etc.   

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