Prefer owner of a well-built house that requires little or no work in an area slightly rough, then the worst house in a good neighborhood. This does not mean that the location is not important, only means that the location is not everything in a purchase.
If your goal is to “jump” of a property (to buy cheap, renovate and resell) then you really want to find that struck home in a great neighborhood. If your goal is to have a lower maintenance property that will attract good tenants, appreciate over the years, and which are not as concerned about how much you have to invest today, then you’re looking for a good location and a good home. If you want good cash flow, without putting a lot of money, it is likely that you’ll have to see at the bottom of the demand for areas to find motivated sellers.
You see how the goals are important in their choice of place? His personality and risk tolerance also come into play. If you need to view their investment on a regular basis, then will want to see in your neighborhood. If you prefer not to participate at all, then you may want something more away from you.
If you’re not sure where to look to find properties that meet their goals, it’s time to begin their investigation. Here’s how we started our investigation:
1. Go to open houses (usually 2 - 4pm on Saturday and / or Sunday) and ask many questions to agents about sales in the area and prices in the area
2. Look at lists of their local newspaper and MLS.ca (realtor.com or if you live in the U.S.)
3. Drive on your desired areas regularly, or better, go for walks through the streets you want to buy in
4. Talk with neighbors (standing on a sunny day and people will be in their yards) on houses in the area, what they like and not like in your area.
Once you determine what properties are selling and whether they are within their price range goal and objectives, its next task is to discover rents. To do this I usually:
1. Browse online classifieds offered by newspapers across the country
2. Review Viewit.ca on a regular basis since taking pictures of each list as part of their service
3. Read the information published CMHC
4. Talk to real estate brokers to open houses and ask them what they think their inclusion on the list who get in rent, and ask about other properties in the area.
Quickly identify areas where you can buy and rent something that was at prices that meet their objectives. And if they have done their research well, you will be able to act with speed and confidence on the opportunities when they arise. You may also be able to seize them before they get into the market.
At the end of the day is still about the location, but for us it comes to finding the best location for their goals.