You are an individual, I suppose … - Posted by Ronald * Starr(in No CA)
Posted by Ronald * Starr(in No CA) on August 02, 2003 at 12:14:03:
You are an individual, I suppose, so choosing where you live is very much a personal decision.
Have you moved in the past and established roots? If so, you know some how to do it. Otherwise, you probably need to study up on the topic.
There are some books which can help. One is “The Places Rated Almanac” by Rand-McNally. There are a couple of similar ones such as “101 Best Places to Retire” and “Best Small Towns in America.” You should be able to find them at the local public library. You could also look them up on amazon dot com and and you will see similar books.
I think that the Southeast and the Midwest are the best places to look for rental properties that make sense.
However, the amount of money you have would probably not generate very much income if you buy just ordinary property values. You might expect to make $3,500 to $5K a YEAR in rental income.
So, you might want to buy bargains and resell them quickly for profits, then buy “holders” for rentals as you find deals that make a lot of sense from a rental standpoint.
I don’t think you need to worry at all about any area being saturated with investors, except Atlanta GA which is in a down-swing right now. And, if you are good at being an investor, you can probably prosper well there also.
Austin TX is in somewhat of a slump as they are hurt by the slow sales of high technology gear. I think that is a great part of the country, albeit a bit on the hot and muggy side. But, it will bounce back, and you would be well poised to take advantage of that.
There is a lot of census data from the 2000 census on the internet. You might be able to use some of that to sort down to a few choices. And there is a lot of local information on the internet: the chamber of commerce stuff, which always makes even the most horrible place on the planet look appealing, and much more. Many newspapers have online editions for free, so you can read about a locality some. Also, www.realtor.com is excellent for seeing what the asking prices are for housing and how many properties there are available. I have recently looked at that site to count houses available, then divided that number by the population of the area. From that you can get an idea of how tight or how available housing is. For instance, here in Oakland, CA, where I live, there is about one and a half houses available for sale for every 1000 population. In Paw-Paw, MI, the figure is about 65 per 1000.
Good InvestingRon Starr*****