Is A Rental On A Busy Street A Bad Ist Investment?
I have been looking for a duplex to live in and rent out the other for 5 months. I've only found one other that fits my modest means that was decent, move in condition in a decent neighborhood. The first one was already in contract and this one meets the criteria I want with 3 BDR and Living rm, Dining rm and eat in kit. But this is on busy MAIN street and I could hear the traffic from inside. Wondering if this will be HARD TO RENT, Hard to sell if I decided to years later?
Look, nothing is hard to rent for the right price. And the same goes for reselling.
If all you can afford is a house on a busy street, then that's all you can afford.
Numbers aside, here's one of the barometers I use, or better yet the question I ask myself when buying an investment property in a questionable location:
Would I live here?
If the answer's "no," then I move on.
You've already said you'd feel comfortable living in this house. So I'm guessing chances are somebody else will also.
And there's a very good chance they'll be in the same financial situation you are.
Every market needs a seller. With a cheaper house on a busy street, your market is going to be people of modest income.
But that's what makes the world go 'round. Not everyone can afford something in the burbs on a quiet cul-de-sac.
Good luck.
[addsig]
Thanks for your input. I greatly appreciate it. New at this and have been studying all I can for these last several mths. PS Love your Cemetery reference...
We tend to lean toward the Location, location, location slogan. Due to this one requirement. When you must sell WHY should you discount for the worst location? If you notice the busy street, than so will the next buyer. Bottom line a realtor will tell you when you may need their assistance in the future...YOUR LOCATION is subprime so expect fewer prospects. When the property price is too low, what do you tell yourself?
Eric & Rosa
[addsig]
you could spend money on soundproofing it to the point where you no longer here road noise.
anyone have ideas on how much that would cost???
i have no idea myself, but it might be worth it.
that said, i lived in a house next to an offramp near a freeway, and heard trucks plying all night long. however,
after the first 5 days, it really didnt bother me that much.
Who Knows Maybe The Zoning Would Change, If It's A Main Street In Your City! And Your Land Could Be More $$$
Lance
I'm with classimg. Location is the only thing about a property that you can't change. Yes, you can discount the price when you sell. However, if it's a buyers' market when you want to sell, then your property could sit a long time on the market and probably sell only after you discounted the price even more.
During WWII while vacationing in England flying fighters for recreation, I fell in love with a funny old Quaker Town called Saffron Walden.
On the main drag they had houses, side by side (Row Housing). I noticed that one was vacant and rather conviently located near a Pub. I of course bought the property imediately and informed my fighter base to forward my mail and that from now on I would commute via bicycle each morning to take up my duties as your local fighter pilot in residence. So each day I awoke at about 4AM and climbed on my trusty bike and off to war I went.
The house had a lovely sort of bay window at the front and I had it padded out and reading lamps installed and there I would stretch out and read a book and let the business of war pass me by.
The upstairs bedroom and bath was cute and quaint and I really loved the place. As you say it was on a busy street and the passer byers would waive hello to the strange young Yank in the window seat. I got to know them all from the Gay Vicar deep in his closet to the old Spinster lady who would only go into the Pub with me the youngy on her arm. I learned to love Teacle Pudding, Toad in the Hole, Bangers and Mash and I listened to the tales and histories of the peoples. Stray dogs followed me home. A large black cat called me friend and moved in.
It was a moment of peace in a rather crazy and screwed up time. It protected my sanity and kept me in touch with the true realities of life.
Time marches on. It is the 90's. The house has gained great value. Why? Because the little town has expanded and that house is now in a commercial zone. You can have a shop there and the great granddaughter of the Elderly Lady I used to drag into the pub to sing songs and quaff gin and limes. Now designs a far out line of clothes for the rest of the world. She lives upstairs with a lover who she changes as she changes the style of the clothes she creates downstairs.
So look and listen to that busy street, it just might make you wealthy as time goes by.
Cheers Lucius 8-) 8-)