Location, location, location.
As a syndicator, you realize that where you purchase your next apartment community is just as important as the type of asset class you invest in. After all, your neighborhood of choice can either make you or break the success of the deal.
However, figuring out which neighborhood may become your next gold mine—well, that can understandably seem complicated. Fortunately, it doesn’t have to be.
Here are a few key steps for completing a neighborhood analysis online before you make your next investment.
An essential step here is to determine the prices of apartment communities and homes in the neighborhood you’re eyeing. Take a peek at how much properties in the neighborhood sold or rented for this year versus past years.
Start by reviewing the top 10 apartment markets to target if you’re in search of the very best neighborhoods in the United States today.
Another factor to consider when completing a target market analysis is how easy the neighborhood is to navigate. After all, this has an impact on your future tenants’ quality of life.
For instance, how many eateries are within residents’ walking distances? Also, how extensive are the area’s bike paths? What are the neighborhood’s transit routes, and how far can you get via a train or bus in half an hour? Neighborhoods that make traveling easy are generally a win for today’s real estate investors.
When it comes to completing a neighborhood analysis, be sure to look at how much people are paying for property taxes. This is important because this will tell you how much of your cash flow will be going to the local government rather than to your business coffers.
While conducting your online real estate market analysis, make sure that you also take a look at the crime rate in the neighborhood you are interested in investing in. The city in which your neighborhood is located may offer a helpful crime map that shows how frequently different kinds of crime happen in the area.
The Federal Bureau of Investigation also offers crime reports that may show you how many criminal acts were reported in various neighborhoods. The public website on sex offenders created by the United States Department of Justice will also tell you how many sex offenders are living in certain neighborhoods. Obviously, the lower the crime rate is in a neighborhood, the more attractive that neighborhood will be for investing purposes.
As you embark on the real estate investing process this spring, it is critical that you develop your skills in performing an online real estate market analysis. Only then will you increase your chances of making smart buys.
Tune into the Syndication School with Theo Hicks to learn even more about the neighborhood analysis process.
Disclaimer: The views and opinions expressed in this blog post are provided for informational purposes only, and should not be construed as an offer to buy or sell any securities or to make or consider any investment or course of action