The Power of Location: Finding the Right Neighborhoods for Your Investment Properties - Article Banner

You don’t have to be an experienced real estate investor to know that location is important. It’s important when choosing an investment, marketing that property, and attracting good residents. The location of your property will impact what you earn in rent, how well you retain tenants, and how much the value of your investment increases over time. 

Location is also important because it cannot be changed. 

Any investment property can undergo improvements and renovations to help it grow in value. You can add onto a property or even break up a large home to make it two separate units. 

What you cannot do is change its location. Once you buy an investment property, it’s going to stay where it is for the entire time you hold onto that asset. Potential tenants will either love the neighborhood or they won’t; that’s going to impact vacancy time, rental value, and turnover.

Location is powerful. Here’s how to find the right neighborhoods when you’re considering investing in real estate

Pricing: How Location Impacts What You Pay and What You Earn

Real estate appreciates based on the market, which is influenced by supply and demand. The location makes a property more or less desirable to buyers and to tenants. As demand increases, so do real estate prices.

When you’re buying an investment property, you can expect to pay more for properties that are in excellent locations. That’s okay; you’ll more than earn that back because your rents will be higher and your home value will increase more.

A property’s location has a larger impact on home prices than anything else.

When you purchase a residential investment property, the amount of rent you can charge will depend on that property’s location and how convenient it is for your tenants.  Renters want easy access to schools, their favorite grocery stores, restaurants, and entertainment. They want to be close to parks and recreation.

The more you have to offer renters, the higher your rents, and it starts with location.

Neighborhood Features and Amenities 

So, what makes a good location for a rental property?

Some of the features to look for in the location of your investment property include the following features. 

  • Easy access. Residents in and around Charlotte love their cars, and they’ll want to be within a quick drive of major roads and highways that take them to work, school, and social activities. 
  • Safe neighborhoods. Tenants are looking for neighborhoods with low crime rates. They want to feel safe walking around their neighborhood and they want to be sure their children can play without being overly concerned. 
  • Reliable infrastructure. Are the roads and bridges in good shape? Are there shopping centers nearby, and good restaurants? These are the types of things that contribute to a well-located investment property. People like parks and preserves. They want to know the neighborhood is close to a police and fire station as well as hospitals. 

Tenants, in general, are looking for attractive rental homes in desirable locations. They don’t want to live next door to commercial businesses or industrial warehouses. Think about the neighborhood and what it offers before you buy an investment property. 

Choosing Your Neighborhood

You’ve decided to invest in the Charlotte area because you recognize there are amazing opportunities here. Some of the best neighborhoods for investment properties include Matthews, Ballantyne, Monroe, Indian Trail, Stallings, Mooresville, Concord, Pineville, Huntersville, Waxhaw, Fort Mill, Harrisburg, Wesley Chapel, Midland, Kannapolis, and any of the communities around Mecklenburg County, Union County, and Cabarrus County.

This is the right place to invest. But, when it comes to choosing exactly the right street or building, what are you looking for? You’ll have to narrow your search to some specific neighborhoods. Selecting a great property in a bad neighborhood will not lead you towards investment success

Evaluate the following when you’re considering a neighborhood: 

  • Resident demographics. What’s the average income? Do most people own or rent? Buying in a neighborhood that has a higher median income means you’ll likely get higher rents, but you’ll also buy at a higher price point. While a neighborhood with a lower price point will also have a lower median income, you can save money at the point of purchase, but you may lose money by collecting less rent. Sometimes, there is also higher turnover and maintenance costs associated with neighborhoods that have lower median incomes. A neighborhood with a moderate income level is ideal; you won’t spend too much, but you can still count on stable rents and reliable tenants.
  • School districts. A good school district is important even to tenants who don’t have children. It contributes to the health and wholeness of a neighborhood to have good schools in the area. Rents will always be higher.
  • Transportation. Tenants want low commute times. Will they have an easy time getting to and from work?

Property Managers Understand Location 

Partner with Property ManagerAs you’re looking for an ideal investment property, partner with a local property manager before you make an offer. Your property management team can tell you more about the location, and they can describe it from the perspective of a tenant. This will help you understand a particular location’s advantages and challenges. You can expect a full analysis of the neighborhood you’re considering, as well as some recommendations on how you should negotiate the purchase. You’ll have access to reliable data that will tell you how much rent you’re likely to earn and what sorts of tenants would be likely to apply for your property. 

Analyze the neighborhood carefully before you invest. You might be considering what seems like an ideal investment property, but if the surrounding area is rough or the homes are not maintained, you might have trouble renting out that perfect house. 

We’d love to help you. Please contact us at Wess Cason Realty. We provide real estate and property management services in Charlotte and the surrounding areas in Mecklenburg, Union, and Cabarrus County. 

Photo of Wess CasonWess Cason, Owner/Broker

Wess Cason has over 30 years of residential real estate experience to include property management and associated repair projects. His maintenance team is now expanding their repair & renovation scope beyond property management services to our neighborhood community. We are local and own our offices located in Matthews. We service where we live.

  • This field is for validation purposes and should be left unchanged.

Get Your Free Consultation!

  • This field is for validation purposes and should be left unchanged.

Photo of Jonathan CasonJonathan Cason, Director of Operations

Jonathan Cason is our Director of Operations. Jonathan brings 20 years+ of top-notch customer service experience to the table that includes mortgage lending, property management, and real estate. He is excited about bringing such a well diverse team to the SE Charlotte area and to your homes!

During his personal time, Jonathan enjoys spending time with his beautiful wife and spending as much time as he can outdoors hiking, fishing, and golfing.

Laura Suitor, Team CoordinatorPhoto of Laura Suitor

Laura Suitor is our Office Manager and serves as the Team Coordinator for Handyman Matters of South Charlotte. She is well experienced in residential needs having coordinated the repairs for 160 rental homes in the Charlotte market.

Photo of Bethany MartinBethany Martin, Team Coordinator

Bethany Martin comes to the Wess Cason Realty team with over 10 years of Property Management experience. Bethany is always committed to providing the very best in service and professionalism to all of Wess Cason’s clients!

When she is not at work, greeting everyone with a warm smile, she enjoys spending time with her husband and 4 children, taking day trips to the mountains and attending as many concerts as she can!

Photo of Jason SuitorJason Suitor, Maintenance Operations Manager

Jason Suitor is our Lead Craftsman and has a wide variety of maintenance skills. From tile work, luxury vinyl flooring, drywall work to faucets, fans and disposals, Jason has done it all. With over 10 years of experience, Jason consistently gets 5 Star Reviews for his work

Photo of Alyssa Cason TobinAlyssa Cason Tobin, MBA

Director of Marketing

Alyssa heads the marketing department , bringing over 10 years of experience across a variety of channels. Focused on building and growing Wess Cason Realty, Alyssa ensures that all marketing, advertising and branding activities are on message and bring value to those in our area.  Being the daughter of the owner, Alyssa considers herself truly blessed to work with family every day in this new business adventure.

On her off time, Alyssa enjoys spending time with her wonderful husband, two beautiful children, family outings, shopping and traveling when she can!