So I have a very specific area that I want to operate in. To be extra specific I am looking to build my own portfolio within one square mile. No single family homes, just 2-4 unit properties. Why such a small and specific area you may ask? Well I am investing in other areas with partners, but for my own buy and hold portfolio I want to be able to walk to any property that I own. That and I grew up in my little suburb and know the area pretty well. I’m trying to design my portfolio around the life that I want to live (maybe that will be my next blog).
With that there are a number of challenges (area is getting more expensive, limited inventory, etc.), but I’ve put together a plan that I wanted to share with you all.
- I have pulled all 2-4 unit properties in my small area from the MLS to see when they sold and for how much (I’m an agent, but if you want to replicate this you can probably just have an agent do it for you). This resulted in over 100 2-4 unit properties in my little area so that was pretty positive.
- I have also started snapping pictures of every hand written for rent sign and been adding them to a database. I’m going to put them on a 2-3 month rotating call schedule to see if the owner is looking to sell. You never know when someone will get motivated!
- I also am starting to handwrite letters and should have them in the mail sometime in the next month. At the very least I am looking at this as a way to get to know all of the people that invest in my area! So even if I strike out on buying something maybe I will meet someone that can help down the road or that I can help!
Those are just some ideas that I have to start growing in my little area! Do you have any ideas about how to build a hyper-local portfolio? If you aren’t an agent you should ask your agent if he/she would start looking off market for you. You may have to pay the buyer’s agent commission if they handle the transaction for you, but just remember that everything is for sale for the right price! You never know what you’ll find!
When I finally find my next project in my area I’ll provide a success story so that you can learn more as well!