When one is looking to take some investment dollars away from Wall Street, and placing it on Main Street in residential investment property, where does the average investor begin? There are countless ‘do it yourself’ investor groups out there on the internet, and many have some good information, but others I have found will lead a new investor into the ditch.
It is important to have a basic foundation of understanding on the subject, to avoid costly mistakes. One key piece of advice I can offer as a Realtor is to do some homework. What kind of homework? Well for one, study the city you intend to invest in with residential rentals. Ask some other landlords in the area. A good way to reach them is through a landlord association.
Find out what areas of the City do they have a demand for rental homes. Are there any areas that they never seem to have trouble getting tenants? What are the rents? Ask these questions of several different landlords, and plot some of this information on a map. This will help you get a feel for where the demand is.
You will also want to check with the local police department, and find out where the
troubled areas of the city are, and places they suggest you avoid. I once had an experienced investor describe the perfect neighborhood as one that “You can send your Grandmother to collect rents at on a Saturday night, and have no worries.” As humorous as it sounds, you may have to go collect once in awhile, and this will make sense to you when faced with that situation.
I created a short video on some of this information for the new investor, and have included it here in this blog. If you would like some more information on investment property in Southwest Michigan, give me a call at: (269) 441-8182 or contact me through my website at: www.michaeldelaware.com.