Today I want to talk to new investors about choosing a market to invest in. The right answer is different for everybody, but in general you want to look for an area that is within reasonable driving distance from where you live and work. Within that radius, you don’t want to invest to the absolute most or least expensive neighborhoods.
“Reasonable driving distance” might vary for you, but let’s say you should look within a 30 minute radius from your home.
Now within that, the most expensive neighborhoods will be tough to get into. On the other hand, the cheapest neighborhoods won’t really have houses that are easy to flip. You tend to find the most buyers or even renters somewhere in the middle. In Michigan, that means houses with a sale price of about $125,000 to $175,000. That’s the sweet spot with the most buyers and renters. Focus on a price point that feeds into the greatest population of potential buyers. Fish where the fish are. You want to build your business on the rule, not the exception.