Before I invest in a property I consider all of these factors of a potential neighborhood.
A neighborhood doesn’t have to have them all but they’re all signs of healthy areas.
If you think of all the popular areas of your city they will most like have some of these
features if not all. Every property I own with the exception of one, has all of these key
features of the neighborhood.
- People walking dogs. It shows that the area is walkable and they’re not worried about going outside and enjoying the fresh air. Generally, I see happy people walking their dogs. It usually means there’s a park nearby where they can meetup with other dog owners and sip their lattes together, and have enough space to play catch with the dog. Also, they may be responsible enough to take care of a pet and have extra money to spend on it too.
- Girls running. Seeing a cute girl running is also a great sign. The neighborhood is safe enough where a young girl can wear tight jogging pants and not worry about being harassed. Guys want to live where there’s cute girls too. A tenant who takes care of them self will probably take care of their possessions and keep a clean house as well.
- Coffee houses. Also, a great sign of a vibrant neighborhood people engaging in the community and spending money locally. Taking their laptop with them and sitting on a patio to enjoy their coffee. Again, also they have extra money for a $5-6 latte. A local independent coffee shop is even better. It will attract a hipper crowd. People want to live where it’s hip and cool. Speaking of which…
- Craft beer. Bars that sell craft beer like a small batch IPA, always a good thing. Brewing their own beer is even better. It’s unique and cool. People want to go to these bars and drink something new. Hopefully there’s a patio attached to the bar as well. These are where young professionals or hipsters go. These people make great tenants and hopefully will stay in the neighborhood when/if they decide to buy.
- Beautiful brick homes. Classic pre-war homes are well built and look amazing. They can have leaded glass or even stained glass. Crown molding, hand carved wood, and brass hardware. The architecture is unique compared to the structures being built now. Many people enjoy the classic look. Even if you don’t want to live in one they still contribute to the overall vibe and esthetics of the neighborhood. Every building I own with one exception is a brick structure.
There are many more things to notice and consider in a potential investment area. These are the ones that have always proven true for me.