Hello as a first time investor who is actively searching for my first deal, I have been doing some reading on the steps etc. Earlier I posted my action plan and got some wonderful feedback.
One of the areas my reading and feedback recommended was to pick a market and get to know it. I have selected my market as a large nearby city which has a large rental population. It actually has more renter occupied units than owner occupied.
Once I had my market defined I wanted to narrow it down to key sub-markets or neighborhoods to focus on. As a first timer I feel I am limited somewhat. I don't have the experience or knowledge to handle a full rehab and many of the sub-100K properties are vacant, nor do I have the funding connections or resources to purchase a well run mature property.
To help focus my search I started doing some research on the neighborhoods. I browsed the local police website, I looked for community sites etc. I had hoped my real estate broker could help me with insight into different streets etc, but they said they are limited and can't tell me if an area is good, bad, dangerous etc as it would be considered "steering" and it is illegal in our state and could cost them their broker license.
They did recommend something that I had not seen in any of the books I have read yet. Instead of focusing on the location focus on the tenant type. This might be common sense to some but as a first timer this was an eye opener. I had considered location, facilities, funding, and many other things to narrow my search but before today I never stopped and said I want my tenants to be X.
My homework now is to think about if I want to go with low income government sponsored tenants, students, medical workers or some other tenant demographic.
So I hope this helps someone else and please send me your feedback and comments.
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