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Updated over 9 years ago on . Most recent reply

User Stats

24
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1
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Sherief Melik
  • Real Estate Investor
  • Rolling Meadows, IL
1
Votes |
24
Posts

High renter occupied areas VS High owner occupied areas

Sherief Melik
  • Real Estate Investor
  • Rolling Meadows, IL
Posted

While i am researching for best places to buy rental investment properties i feel confused while looking on (vacancy rate, high owner occupied areas ...etc) , my question is when there is an area which has 80% houses owned and 20% houses rented and another area got 50% houses owned and 50% rented which will be better for rental investment ?

when you go to a nice area with good schools but yet the houses are a bit affordable and rents are high compared to the price you see that 85% owned and only 15% rented , do you think it's good idea to buy and rent in that area ? or it's the opposite i look for areas that high number of rented units.

Thanks.

Most Popular Reply

User Stats

727
Posts
500
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Tony Gunter
  • Investor
  • Canton, GA
500
Votes |
727
Posts
Tony Gunter
  • Investor
  • Canton, GA
Replied

My 2 cents ...

Buy in an area where the numbers make sense for rental properties, but buy in a neighborhood where the majority of homes are owner owned. Ride the depreciation, and hopefully appreciation, for +/-10 years then do a final face lift and sell the home into the retail market for maximum return at time of sale.

I don't want to buy a SFR only to hold it and then sell to another investor like myself looking to get into a property cheap. I want to basically flip the house into a retail sale. Granted, a very long slow flip.

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