House on an Interstate

[Nick Talvy]

Hey everyone

I have come across a deal in a good rental area. The price is right. It's a safe, quite area, and the rent in the area for the size home is 1200-1300. My biggest concern with this property is the yard is fenced in, but the fence along the backside of the property is one of those big cement walls that has a busy interstate on the other side of it. I drove by tonight and you hear the steady sound of cars going by. It almost sounds like the wind before a major thunderstorm. (Might be a Florida thing). Anyway, I want to buy the property for buy and hold. I've heard a lot about having multiple exit strategies. So while the house should come at about a 30-40% discount, can having the interstate on the other side of that wall, prevent me from getting market rent, and or selling it, if I decide to flip?

Basically, stay away or if the price is right who cares?

Thanks in advance.

Nick

[Jonathan Pflueger]

@Nick Talvy

For the right price most anything can be a good deal. With that said, not all good deals are worth acquiring. I think this really depends on the area in general. For instance, I rented a home exactly like this a few years back and I paid top dollar rents - however, it was in an exceptional area and amazing neighborhood. I got used to the sound and eventually I had to really concentrate to actually hear the traffic. 

Don't buy the house, buy the area. And make sure there are other houses it will comp against before you buy. Assuming there are others house similar to this one (next to the traffic wall), see what those are renting for - can't hurt to be too careful. But the right area should go a long way to insulting any investment at the right price. 

Best of luck!