Very Confused Beginner Investor

[Ray Sudur]

Hello awesome people. I am a 30 yo dude who lives in Cedar Park TX. I have been reading books and lurking in forums to learn more about real investing specifically buy & hold & rent strategy. I am currently a home owner myself with a mortgage so I have some idea how mortgages work.

Now, I am learning more and more about private money and real estate investing. One thing is driving me crazy is this. I am looking at redfin, zillow and other tools to help me understand sold property prices in Cedar Park, Leander, Georgetown and Round Rock areas. I have 40K to invest. My biggest question is that how the heck you locate a good neighbourhood? I mean, when I look at zillow or redfin, there are so many neighbourhoods that have houses in my price range (225K or below), and I get lost very quickly figuring out which one I should go and start driving around. Do you know what I mean? How do you learn about neighbourhoods and decide which one you are gonna focus on?

[Bryan Petrinec]

Hi Ray, as a CP investor myself, location is key.  You need to more careful in areas like Killeen, Bastrop, Buda as the wrong side of the RR tracks or highway can make a huge difference.  I would recommend that to buy where you know.  I have found good deals in the Leander, Round Rock, Georgetown area in the $250k range for a duplex. Those areas are more stable, but a little more pricy than where you are looking.  

Get teamed up with an investor focused realtor.  I recommend @Jared Crouch as he has made a huge impact on my purchases over the last 2 years.  Zero to five duplexes that all cash flow in the last 18 months and potentially more soon.  

If you are focused on those areas, get a realtor from that area, so you might need a few. Best of luck!