Showing posts with label Rental. Show all posts
Showing posts with label Rental. Show all posts

Tuesday, August 25, 2009

Transit Oriented Rental Properties

Investors who are seriously looking to invest in rental property, should understand well the difference between a tenant’s perspective and a homeowner’s perspective. Tenant is looking for convenience, while homeowner is looking for a nice and peaceful place to settle down or to raise a family. Tenant often prefers a place close to grocery, public transportation or easy access to major highways. Homeowner doesn't mind to buy a house in far away location in exchange for a bigger space for his/her family within the price range that s/he can afford.

A property close enough to public transportation, will make a good rental property, as long as not too close that it will be too noisy for the resident. An interesting area to watch out is President Obama’s administration’s proposal of $8 billion federal stimulus money to build high-speed rail (HSR) system in ten designated high-speed rail corridors across country.
Even though this plan has invited controversy from multiples parties, I would like to keep my eyes on properties located around the proposed high-speed rail lines. Of course the price has to make sense, which means the property has to be able to generate acceptable cash-on-cash return, so in case there is any change with Obama’s plan, you won’t be screwed.

Where are the ten corridors for proposed high-speed rail?
• Pacific Northwest
• California
• South Central
• Chicago Hub Network
• Northern New England
• Empire
• Keystone
• Southeast
• Gulf Coast
• Florida

See the map below for more detail.

High-Speed Rail Map
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