All Forum Posts by: Account Closed

@Tanner Shore

If you find issues with the properties upon inspection, you can try to negotiate. But most of the time, turnkey companies will try to address the issue themselves rather lower price. @Chris Clothier has some great pointers. I would also emphasize that you do your research on the neighborhood. The quality of the area and your tenant pool can make or break your investment. Ideally you would visit the property yourself, but if not, the best way is to connect with a few property managers. I also collect a ton of neighborhood level data that provides very good insights. Feel free to message me if you'd like access. Good luck!

@James Copas
You may also want to research the neighborhoods that you're going to be active in. Be well versed on which areas are good or bad. I have some good data sources that I use for my investments. Let me know if you want some info on it. Good luck!  

@Lucy Oliveira 
Researching markets is quite simple - look for population and job growth and a diverse economy. Finding good neighborhoods to invest in is much more difficult. Best way I found is to find an agent that you trust that also understands investments. It also helps to have some data to double check everything. Things like income, ownership rate, crime, etc. I hope this helps!

Mashvisor is great. But for the data you're looking for, city-data.com has been the best i've found. The data is a few years old though.

@Tony Gaultney D areas can be very tough so be careful. Do you DD carefully. Since you're in the area, try driving by sometime.

@Tommy Adeoye
Yup. Luckily over the past few years, I was able to build some connections in the markets I invest in. But for new investors, it's difficult to start when they know so little about the market. 

@Kirk R.
Yup, agreed 100%.

@Reba Vera I have always been provided a copy of the lease IF the property has tenant in place before closing. I have purchased a turnkey property where tenants were placed after closing. But for these types of situation, I'd ask for an addendum that closing occurs upon tenant signing lease contract.

There are endless articles and posts on BP discussing how to analyze a deal. But most focus on how to run the numbers and very few focus on how to assess the neighborhood. Putting numbers, I'd like to share some metrics that I consider during my DD:
-Home values
-Crime
-Income
-Population growth rate
-Unemployment rate
-Owners vs Renters
-Nearby development

If you research neighborhoods before you invest or advise clients, what metrics do you look? If you don't, why not? Anything outside this list that you track?

Agree with @Alyssa Dyer. You have to take the jump sometime! Double check your numbers and do your DD on the neighborhood.