FAQS About Choosing Property Types

 

Good cash flow? Good equity? Good schools? Pride of ownership? All white? No foreclosures around? This is the most frustrating question of all because your idea of a good neighborhood is different than mine. I prefer "C" neighborhoods because that is where I can find the best deals and gain the most appreciation. However, if you cannot afford a 3/2/2 in a "C" neighborhood, you are better off getting a 3/2/2 in an "F" neighborhood than a condo in a "C" neighborhood. For the record, "C" neighorhoods have a variety of ethnic backgrounds.

Yep. Don't believe me? Plug in an address in Clark County's crime statistic web site and do some homework. I live in a neighborhood full of half million dollar homes and we get more crime than 3 of my rentals combined!!! My theory is that the crooks prefer those areas. One reason could be that exclusive neighborhoods are more likely to report crime. Perhaps crooks prefer to rip off rich people...

Half the time the listing agent doesn't have the gate code and I just coast in behind someone else. Gated communities keep out friends, people you are trying to rent to and folks trying to deliver pizza. Still don't believe me? Go here and punch in an address in a gated community, you will discover no correlation between crime and gated communities. My favorite story I love to tell is about a $800k home inside a guarded gated community that was occupied by squatters for 2 months. I have NEVER been held outside a gate by a guard. I show them my 2 cent business card, act official, make up a story, and I'm in.

I evict just as many tenants in "B" neighborhoods as in "F" neighborhoods. Quality is a function of price. If you advertise below market rent, you can be very selective about your tenants and get the best quality. Smart investors just don't care because they lease/option their properties.

From a pure financial perspective, second homes are foolish investments. A good rental that throws off $1000/month will easily pay for a nice vacation anywhere in the world. A 3/2/2 in a "C" neighborhood will give you $10k a year in descretionary income. Explore the world and allow me to help you make money.