I usually want to keep my investments within a 100 kilometer radius from where I’m located because I should know more about the locations close to me, I also know people who work in the area when I need help with something.
If I draw a circle with a 100 kilometer radius I reach about 10 different townships. Last week I found a house that I sort of liked in one of the townships I knew least about. So I figured let’s go there and see what I can find out. The result’s from this one day were really good and I suppose I should do the same thing in all of the 10 townships. The only problem is that I might end up with too many potential deals that I get a hard time to actually choose one and do something.
So. The day. I took off in the morning to check out the initial place I was interested in. Spent an hour or so they’re trying to figure out what my options would be if I bought it. One of the options was making the big house into two apartments. To find out if this was possible I went to the municipality and asked them about the possibilities. Could be done with a bit of an issue. I also went to their environmental department and they told me I there were some problems with the drain in the whole area and Id have to do some work with it. To finish my visit to the municipality office, I went to their public housing and asked if they had any vacant apartments. They didn’t. And hadn’t had one for almost five years. They also gave me information about the average rents in the area.
Now. I knew I could possibly turn the house into a mulitfamily home and make descent Cashflow, but still not sure. The backup would have to be a regular restoration of the place and then try to sell it. To see if there could possibly be some profits in this I went to some realtors and asked them. Turns out my margins would be very, very small, so I kind of gave up on that object.
But. That wasn’t the end of it. When I got to the third realtor, he mentioned another place a little bit further down the road. The owner of the place had economical difficulties and his house had been empty for a year. During this time some water pipes had frozen and when spring came water started leaking out on the floor. So even more problems for the poor owner who now want’s out. I have a meeting scheduled for Wednesday and if we can work something out, this could be a potential gold mine for me and the situation I’m in.
Besides his place I ended up leaving this township in the late afternoon with another two very interesting object if my favourite one doesn’t end up becoming a reality. I also have tons more knowledge about the different areas and their process, the municipality’s plans for the different areas and a good general knowledge about what might happen over there the next few years.
So. With this much information from visiting one township. Imagine the massive amount of useful information and all the fantastic objects I might find if I do the same kind of trip to all other townships within my 100 kilometer radius?
