Where is the best place to buy rental property?
Buy rental properties near your home.
Here are 10 reasons why you want to buy investment property near your home and in the same county.
My preference is within 30 minutes and in the same county and city.
1. You can show tenant prospects more than one property
·If your properties are spread out too far into different cities and counties, a prospect call for one property won’t lead to them renting another. However, if your properties are reasonably close, then if a tenant does not like one property, they may like another you have 5 minutes away.
2. You deal with one courthouse for several purposes:
·Foreclosures
·Evictions
·Title work, recording
·Research: bankruptcy, probate
3. You network with the same people
·Real estate agents, mortgage brokers, inspectors, appraisers, other investors
4. You deal with one Chamber of Commerce
·Other networking groups
5. You get to know the utilities for one county
6. You will have the same laws and procedures
·Eviction procedures
7. You have one main newspaper to advertise in
·Focus your ad money
8. You can drive by houses while doing other business in the area
·Can show one house
·Can check up on contractor on another
9. You can farm one area well
·Get to know neighborhoods and comps
·Get to know where growth is happening
·More aware of the crime pockets
10. You only need to develop subs, contractors, and handymen for one area
·Plumber
·HVAC
·Electrician
·Painter
·Roofer
Comments (2)
Douglas, My experience agrees with your position and, to-date, our properties are all within a 2-mile radius. However, prices are very high here and our capital could yield better returns in other areas, so we are not looking at potentially partnering with people in other areas to the benefit of everyone: they get to grow their portfolio a little more quickly and we get to put an allotment of capital to work with the expectation of better returns.
Roy N., over 10 years ago
Very good points! It's basic common sense but sometimes we don't stop to think about things like just saving time by keeping everything close by. Time always translates into money, no matter what business you're in.
Jaz Cook, over 10 years ago