How to choose location?

Question

Hey there Pockies,

Wondering if anyone might be willing to share some tips / tools on how they choose their location to invest in? I live in Chicago and am trying decide what area would be best, my real estate friends have told me to find the most hopping area with shops, food, etc and then buy just outside that.

If I’m looking to get into buy and hold rental properties, what factors do I need to consider in terms of location? Furthermore, how do I identify wether a neighborhood has those factors? Using Data from online sources?

Thanks so much advance for any tips you may have!

Landon Hoffman · Answer

Quite honestly, there is money to be made in every market if you buy correctly. If you're looking for natural appreciation and some cash flow, use the strategy that your friends have suggested. With that strategy, however, you will probably miss out on forced appreciation (equity creation) and some bigger cash flow numbers because of the premium you would have to pay to buy in those areas.

More importantly, the best places to invest are the places you're familiar with and areas that you have a team in place. Wherever you decide to invest, make sure you have trusted lenders, insurance agents, attorneys and MOST importantly great property management. Property management will make or break any RE investments you make.

In terms of metrics, look for population growth, job growth (2% over the last 12 months), low crime rates (Trulia crime maps). If you're that interested, this is a great resource (udemy.com/realfocus).

Good luck and feel free to reach out with questions!

Martin Raucher · Answer

Saint Petesrburg, Fl

or maybe Chicago..