Everybody keeps talking about how important it is with location and you know what? They are right.
But! It’s not everything. The best business is found where location meets good value. They say that we should buy places on a good location because it’s safer. It’s safer because you can only fit so many houses along the beach or downtown. And they are right. In that sense it is safer. But there is another side to it.
The income on a property at a really good location is only marginally better than it is on a slightly less attractive spot. The result is less profits as you have to spend more money paying for that premium location.
So should we look for the cheapest possible location that would still rent? Yes and no. There is the appreciation. The appreciation makes us money too. I therefore believe that you will be better off somewhere in the middle.
Personally, I prefer looking for good spots that others have missed. Places that are in general thought after areas, but on a discount. The houses here in Florida are located less than a few hundred meters from the Mexican Gulf. They are beach houses with $500 000 mansions just down the street, but were still completely forgotten by other investors. They will easily rent and I bet the appreciation will be great. It feels unreal finding places like that, but it happens. The key is creativity and persistence.
Do you know of any areas like this around where you? Go out, drive around and look for what others have missed? Lakes, beach, central, with a view etc.
I spent all day yesterday driving around the New Port Richey area and the result of that day might be a super cool location on a massive discount. I’ll tell you more later!