Posted by Rob FL on May 09, 1999 at 20:48:20:
Actually, most of the properties I target are in what Carlton Sheets calls “bread and butter” neighborhoods. I target good but older neighborhoods because in the newer neighborhoods nobody has any equity because they are mortgaged up to the hilt. Deals can be found, but most of the time I have found that the deals are in the neighborhoods that are 20 to 40 years old because the houses have some equity, have appreciated since the original purchase, and may need repairs.
Actually, the age of property is a factor, but appreciation is not affected by only one factor. Does a 100 year old house that has been remodeled and updated to 1999 standards and in a great location have no appreciation? In Orlando, most of the older houses are right downtown. In 10 years, the prices have literally doubled. I have one house down there and the rents have gone from $450 to $700 in 5 years. The neighborhood was subdivided in 1915, pretty old. There are other areas of my town that are the same age and the property is depreciating in value.
One thing I have learned is never to make broad generalizations. Do your homework. Before I go for a deal, I know the numbers.