Things to be aware of when choosing a town to invest in?

[Jack Harrington]

I’ve been a member for awhile now, and finally have enough saved up to get started. I have a 3 unit building I am getting ready to make an offer on. The deal looks good so far, but I I don’t know much about the town it is in. So I was wondering what you guys do to educate yourself about the laws, regulations, taxes, dealing with inspectors, etc. for a specific town. I’ve been looking at the towns website, just wondering if there are any other resources to use, or things to think about when going into a new town. I am looking at Addison, IL, if anyone is familiar with the area. Thanks

[Jim Goebel]

city-data.com is a great site for checking out stats on a place

macro factors to consider:

1. population growth rate
2. diversity and depth of economy
3. socioeconomic and racial diversity of a population
4. financial depth (does locality have good access to capital, plenty of retail banking options, ideally investment banking level of commercial and capital fluidity)
5. past property appreciation

other important factors to consider:

1. proximity to where you are and how that aligns with your use PM or self manage strategy
2. actual property analysis
   1. financial analysis
   2. project /rehab analysis
   3. immediate surrounding area analysis
   4. get whatever conversations with locals you can (I've found talking to neighbors can sometimes reveal nuggets of gold)
3. regulatory analysis
   1. get some feedback from people that have been through the process in terms of permitting/etc
   2. check public records (my view is that the more available and the more consistent, the better)

that's all I can think of for now but all have their importance and from what you've shared what makes you NOT do a deal is far more important than what makes you DO a deal.  See a bunch and don't fall in love with anything.