Using Location Intelligence for Real Estate Investment

Location Intelligence for Real Estate

Location, location, location!

Whether you’re looking at real estate in Phoenix, Scottsdale, or Tucson, location remains vital. Everyone understands how this plays into residential real estate, but it’s just as important for a commercial investment.

The more you know about the surroundings of your investment property, the easier it will be to evaluate whether a particular site can meet your cash flow goals. Mastering location-based analysis will help you make more profit with real estate in Arizona.

Of course, “curb appeal” isn’t the only location-focused factor that makes a difference when buying a multifamily property. There are many elements you should weigh before going forward on any potential investment strategy.


Accessibility and Public Transit

If your property isn’t easily accessible, people will naturally gravitate to other options. Don’t assume all potential residents in a given area will have their own car. Their public transportation options truly define many urban locales.

Public transit within a five-minute walk of the property will have the most significant impact. Also, be aware of changes in transit infrastructure: If a new line is planned, it may be a good idea to buy and hold. If a local line is soon shut down, it could leave your property isolated.


Local Hotspots and Gathering Places

Where do people spend their time in the neighborhood? It’s important to look at both the top local employers and other sites people might visit: For example, restaurants, movie theaters, or weekend activities such as museums.

Checking out the reviews of local businesses can give insight into the culture of the area and whether the amenities add neighborhood appeal. This, in turn, can help you attract the desirable renters that you want most for your property.


Neighborhood Demographics

When it comes to demographics, three key factors can help you estimate economic vitality of a location: Income, education attainment, and cost of living. As the cost of living rises, it may displace traditional residents, but not necessarily attract new ones.

Although many factors determine an individual’s income, educational attainment continues to rank near the top of the list as a predictive factor. When startup businesses, high-class dining, and other amenities appeal to educated residents, it is usually a good sign. As these residents settle into families, they often look for the best public schooling, too.

If a potential investment property is accessible, local to well-loved amenities, and aligned with the needs of key demographics, it may be time to pursue commercial real estate loans. Capital Fund 1 is a top provider of buy and hold loans for Arizona investors.

Fill out your hard money loan application today.