Many rental signs

[Arthur Banks]

Did any of you experienced landlords get nervous when you saw a lot of FOR RENT signs in your area when you were first starting out?

I was in an unfamiliar town this past weekend and I saw A LOT of FOR RENT signs along a particular street I was traveling. Made me nervous and I wondered did anyone else get nervous as they began their career in investing.

[John Chapman]

If you are referring to SFRs, then yes, I think there is a legitimate reason to be concerned. (If it's larger multi's I suspect they are always having vacancies come up so a "For Rent" sign wouldn't really tell you that much.) I would not buy in a neighborhood with a lot for "For Rent" signs. First, that's a lot of competition that will likely push down rents and/or increase vacancy. Second, when I buy SFRs, I want to buy in neighborhoods without a lot of rentals. These are the ones that tend to hold their value better and even go up in value. Third, tenants generally want to live in these types of neighborhoods as they are nicer and more well-cared for.