Where should you buy income property?
Once you've determined that buying income property, especially 2-4 unit properties such as duplexes, triplexes and four-plexes, is your next step in preparing for financial security, the next question is, "Where do I buy?"
There are many indicators to be discussed so let's get begin with the timeline of your investment. If you are investing with a mid to long term time line, which will address in this article, often called "buy and hold", then it's best to search for areas that have solid commerce driving the local economy. Remember the saying, " Follow the big guys." This means take notice of where big industry is headed or well established. Home Depot and Wal Mart are excellent indicators of high rental demand areas. These industries keep demand for rental units at a premium.
Universities and colleges can also be great rental demand areas. Students, as well as the infrastructure, faculty, employees and medical centers will keep rental demands intact.
Next up is the amount of down payment. This will obviously be a determinate to the area which will be based upon a sale price.
You will also hear about emerging markets, which are markets that are on the increase in appreciation. All real estate is cyclical. Some properties are on the increase and some are on the correction phase of the cycle. You've heard me say it before, I say it again. Your best partner in acquiring income property is an expert Real Estate Agent. They know the area, know what is driving the local economy and they know what is on the horizon. However do your homework. Check with local building planners and city managers for more information on area improvements.
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