How does being near railroad tracks affect property value?

[Stone Saathoff]

Being someone who works in investment real estate, I tend to come across quite a few discounted properties that are located near railroad tracks. I've heard a few opinions on this, and I've seen varying evidence in my market research.

As an example, just this evening I'm pulling sold comps for a house and one of the highest sold price per sq ft comps is located literally right next to a railroad track, and has a massive commercial building right in front of it. These are supposed to majorly drag down a properties value, but this is my 2nd highest priced comp on price per sq ft. How is this? It sold FHA so it is an owner occupant as well, not an investor, in 17 days on market.

While were on the subject, does being near railroad tracks affect rent rates? Curious to hear feedback on both of these.