Today was the second time I met with Bianca, a realtor for Sutton Group. We started working together last week to find a duplex or triplex that will prove to be a great investment. She arrived at our meeting location, and my girlfriend and I got in her van. We proceeded to investigate the city more closely in order to find a neighbourhood for me to invest in. She began by handing me nine pages of potential properties, and heading to my general investment area (which is down town Hamilton). As she drove around, she described areas we passed, and pointed out lots of development projects such as large condo’s being built. This is a good sign of growth. The condo’s also range from small apartments to 2,500-square-foot penthouses. This implies a nice range of incomes in the neighbourhood; both rich and poor. We drove up and down different neighbourhoods to get a good look at the area. There were some nice clean side streets that looked like a good place to live. Getting a taste for the area is always a good idea to do. Some other things we were looking out for were:
- Homes for sale
- Condition of homes
- Tenant Profile
- Close by amenities/things (malls, doctors, restaurants, hospitals, bus routes, jobs)
- General Age of people in Area
- Types of cars in driveways
Of the 9 properties, I have narrowed it to 3 favourites. Two of them are triplexes, and one is a duplex. I will be analyzing each of them in detail to see if they will create positive cashflow and build equity. Stay tuned for this!
Remember, NEVER invest where you don’t know the market. You can analyze the house numbers and math all you want – but understand the neighbourhood. Make sure you are investing in a neighbourhood that will treat your investment rental well for many years to come!