I'm analyzing some properties, and I'm finding some deals in which the crime is very low, but the schools are rated 4/10, 3/10, 5/10. What are your thoughts on the importance of school system ratings? What should you be aiming for in a high cash flow market? I'll post an example from trulia below. I'm looking for a long-term buy and hold.
Investor · Ogden, UT · Member since 2018 · 295 posts · 208 votes
6y
The school zone is important to consider - maybe more so when selling because families will spend more to send their kids to a good school by buying in that school zone - but the same is true for renters as well. All things equal, being in a good school zone will help you fill vacancies faster and potentially charge higher rent. But you don't have to be in a great school zone to rent well, it will just increase your demand.
Investor · Ogden, UT · Member since 2018 · 295 posts · 208 votes
6y
The school zone is important to consider - maybe more so when selling because families will spend more to send their kids to a good school by buying in that school zone - but the same is true for renters as well. All things equal, being in a good school zone will help you fill vacancies faster and potentially charge higher rent. But you don't have to be in a great school zone to rent well, it will just increase your demand.
School districts are important, but rental property is everywhere. Good and bad ratings of schools alike you can still rent them. I have rental properties where the schools are between 8-10 and in the 3-4 range. Both areas rent well. The higher school district scores rent for higher amounts but the property taxes are higher as well. If it’s a good rental area that is probably the best indicator for investing. If I had to choose all things being equal I would choose the higher school district scoring number. You will have a better exit strategy with those; higher property values.
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
6y
Very important...to the people living there...maybe. That maybe also applies to whether or not the best schools are a plus or a minus to the owner/tenant. How do you know? The numbers with dollar signs in front will tell you based on what they will pay in rent and/or purchase price.
It always seems to come back to the numbers with dollars signs in front...eventually.
Investor · Denver, CO · Member since 2017 · 19 posts · 13 votes
6y
In my experience as a landlord, tenants don't usually rent a place based on what the neighborhood offers their children. They rent based on price, first. Then they consider the distance from their work, then they consider the safety of the neighborhood.
In my experience as an investor, however, it's LOCATION first, so low crime is good, with price being second.
In my experience as a former teacher, the quality of the education is more Parent/Student driven, than either the location of the school or the cost of living in the neighborhood. In reading the links you sent, I noticed that there were plenty of private schools in the area which may account for a part of the low ratings. The comments supplied by parents, too, seemed to disagree with the ratings.
So to answer your question, the quality of the schools doesn't figure very highly at all in determining if a property is a good deal. Heck, the best tenants you get may not even have children.