Ok so this weekend I decided I’m driving up to my target market of New Haven. I don’t have a plan yet, but I need to get myself a copy of their papers, I am goign to drive around looking for FOR SALE signs and find out which areas I really like.
Are there any recommendations that you guy’s(people) think I should do? And if I stop in for an open house, are there a set of qusetions that you think I should prepare myself to ask?
In most (if not all) markets, the best rental properties are lower-middle to lower class neighborhoods. These properties generally cash flow best and these neighborhoods have the highest percentage of renters. Look for properties with official looking stickers and no-tresspassing signs. These are often HUD sales (write down the addresses). Look for properties with overgrown weeds and brush, and a lot of old newspapers on the front step and pizza hangers on the door (write down the addresses). Call some realtors and try to find one that works with investors. A brand new young realtor can be ideal (they are often hungry).
When you stop at open houses, look the house over and then ask the realtor what’s the best price they’ll take. They’re not supposed to tell you, but some will. What they say and how they say it can be enlightening. Maybe you’ll find a realtor for yourself at one of the open house.
If you find yourself in a house with marble countertops, beautiful carpet, beautiful landscaping, etc. you’re in the wrong neighborhood! Drive your old car - dress casually. You’re looking for cheap houses!
Good Luck,
Mike