What do you look for in an area?

[Jacob Forbis]

I am still a new investor, and I am trying to develop my business plan. I want to specify what local areas I want to invest in. I've come up with a few requirements, but I thought I would poll this group and see what everyone else thinks. Here are a few of mine in order of priority:

Price-to-rent Ratio - 1% + ($1,000 rent for a $100,000 house or better)

Crime/Safety - no violent crime

Schools - high rated schools

Appreciation Rates - San Antonio is a relatively low appreciation area, but I am trying to find the best I can.

What are some of yours?

[Mike D.]

Close to desirable schools and grocery shopping. Away from massive apartment complex parks. I'd look for areas that are part of a future development plan in the city. No violent crimes in the area. You're always going to have theft and domestic assault, but hopefully no rape, murder, etc. Also, unless you are buying into a downtown that is part of a redevelopment plan, I'd stay away from older neighborhoods (1970s or newer).