A property’s location remains the most important factor when making a purchase of any type, especially an investment in rental properties. Whether single family homes or apartments, where are the best locations in terms of high rents, low vacancy rates, and good long term appreciation? In just about any city, we can usually find profitable rentals by applying just those general criteria to our location analysis.
So, where do we start? One of the easiest ways is to look for “magnet facilities” that create a demand for local housing. Here are just a few examples found in most cities where the three real estate investment criteria mentioned above are often present.
Hospital Zones. Great for offering a mix of short term, furnished rentals as well as long term leases to an educated and well paid work force.
Major Universities. Areas surrounding larger universities can be profitable locations for renting to new or temporary faculty (I don’t recommend investing in student housing). Many universities bring in a significant number of well known lecturers on two or three year contracts, creating the need for local, short commute housing. A visit to the university’s faculty housing office can provide valuable information about the needs of this target market.
Business Districts. Large office parks and corporate campuses also provide the opportunity for offering a mix of short and long term housing. In addition to offering employee housing, some corporations keep furnished units under lease for use by visiting executives and VIPs as an alternative to expensive hotels.
A simple “map reconnaissance” of almost any city or neighborhood should reveal these and other potential target neighborhoods in which to shop for profitable rental properties.
If you have questions about real estate investment strategies or would like help buying or selling investment properties, drop me a line. john@jsrealproperty.com
John A. Souerbry & Associates (DRE 01370983) www.jsrealproperty.com
Tags: Where To Buy Rental Investment Properties, Residential investment strategies, real estate investment analysis, real estate investment services, Northern California investment real estate, Silicon Valley investment real estate, Napa Valley investment real estate, Bay Area investment real estate
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