4. Let’ s get local
LOCATION, LOCATION, LOCATION WHERE TO BUILD YOUR PORTFOLIO OF INVESTMENT PROPERTIES JEAN NORTON
data, easily risking an overbuilt situation. However, those close to me tell me that currently all of the inventory is being absorbed, and there is no end in the near future. Frankly I see Austin as overpriced. But I could be wrong.
location where if there is a downturn in one industry the others keep the area stable. Houston has tried to diversify the industry makeup, and although energy is still their number one industry, they’ ve invited many other industries such as medical research, biomedical research and of course aerospace. Houston may feel a little bit of suffering due to heavy dependance in the energy sector, but nothing like what was seen in North Dakota. In fact, Abode( https:// www. abodo. com / blog / august2016 nationalapartmentreport /) reports that Houston suffered the largest rent decrease in the Country due in part to the dropping oil prices combined with the addition of new housing inventory.
Is it a booming area? My hometown of Austin is continuing to see housing and rental prices continuing upward at a very rapid pace. Much like the Houston example, builders have swooped to the area to satisfy the continually growing demand. When areas such as Austin experience a hypermarket of growth, expect to see a“ correction”. Builders create more inventory based on“ last year’ s data”. All of the builders move forward on the same
Here are some other questions I take into consideration. Is it someplace I don’ t mind visiting? This is a personal choice that you may add to your criteria or not, as it’ s not a critical deciding factor. But it is nice when I get to visit a vibrant city like Chicago or view my properties on the Florida coasts and get to deduct that trip from my taxes.
4. Let’ s get local
Once you’ ve decided on an area to research, there are some of the typical things to look at such as the quality of the schools. If you’ re buying into a retirement area, or a vital downtown area, that may not be as much of a concern as looking in the suburbs. The areas with the better school systems will command higher rentals and most likely continued appreciation.
What is the crime in that area? One tool I use is spotcrime. com. When evaluating for my Chicago investments, I’ m not surprised to see a gunshot or 2 listed, but any more than that and I get nervous. If investing in the quiet suburbs, you may see some vandalism and domestic disputes when the police are called, but gunshots in those areas are a big warning sign for me.