Up-and-coming or emerging neighborhoods are not uncommon most especially during these times when there are many who are willing into real estate. If you’re looking to invest in rental properties, meaning a home or any property that you, as an investor, can buy and have rented out by tenants, then you need to find the right one. Here’s how.
How to Find Rental Properties in Emerging Neighborhoods
Do your research
Before you start investing in a property, do your research. Know more about the neighborhood if it really is a place where you can bet your money on. Real estate is all about location, location, location. Talk to people in the neighborhood, get a feel of the area, research on demographics, and even crime statistics. A neighborhood analysis will tell you if renting a property will be good for you. But just a tip, go for a working-class neighborhood.
Use Leveraged Analysis
According to Biggerpockets, using the leverage analysis will do you good in the field. This is a powerful process that uses the three crucial metrics that are primary indicators of market condition. CPR – Crime, Photo counts, and Rents.
Look for crime reports online and go as far as calling the local police department to know the real situation. For Photo Counts, search for photos online. The more pictures, the better. This means the neighborhood is active and you can see more of the amenities available, the architectural style of the place, and other environmental factors. As to rent, get to know what rent is like in the area. That would give you an idea of your possible cash flow.
With the leveraged analysis, you are able to navigate yourself when it comes to decision making and what resources you can use to your advantage.
Contact a Reliable Real Estate Agent who can help
Once you have done your own research, it’s time for you to look for a reliable real estate agent who can help. Reliable meaning someone who knows the neighborhood and someone who can give you options when it comes to the kind of property you want. Someone who is honest enough to tell you the pros and cons and who sees the potential of owning a property in that specific emerging neighborhood.