A wise man will seize more opportunities than he finds. ~Francis Bacon

Introduction

Don’t just search for homes that meet your criteria, find the home that meets your criteria in places where people like to rent. There are nice areas in my city and there are not-so-nice areas in my city. However, neither of those two areas is where most people like to rent property.

There is an “opportunity” zone between nice and not-so-nice areas where people are eager to rent and where home values ​​are relatively lower, but where moderately high rent can be charged. There are good and bad houses in these areas, but there are usually supermarkets and shops within walking distance, often close enough to walk.

Advantages of Opportunity Zones

Opportunity zones have a big advantage over other areas of the city, you can earn more money from them. There are two reasons for this:

1. You pay less for a rental property in an opportunity zone than you would for a comparable property in a nicer neighborhood.

2. You can charge about the same rent as you would in a good neighborhood.

For example, I have two houses in two different parts of the city. I have a house in a nicer neighborhood on the edge of town where some new growth is taking place. I pay $700 for the mortgage and receive $875 in rent for a profit of $185/month.

I own a second home in an opportunity zone neighborhood, near the central part of the city where property values ​​are lower. For this house, I pay $525 for the mortgage, receive $750 in rent, and make a profit of $250/month in rent.

It’s not how much I make each month on a house, but how little I pay on the mortgage that is the biggest profit in the opportunity zone!

Why do people choose to live in opportunity zones?

1. Cost. As mentioned, the cost of buying property is cheap, and when you can walk to buy groceries and other staples, you pay less in gas.

2. Comfort. Many people want to reduce their dependence on the car.

My experience in the opportunity zone

When I bought my first house, I bought it in an opportunity zone. My wife and I liked the house because the price was fair and because of the location, close to the shops. We would not only walk to get groceries and rent movies, but we would also walk around the neighborhood at night for exercise.

The area was a mix of all types of housing. On a four-square block where we lived were owner-occupied homes, townhomes, apartments, and trailer parks. Our house was located three blocks from two supermarkets, a video rental store, 7-11 and Circle K stores, an auto parts store, a Taco Bell, a McDonald’s, and a drug store. Of course, there were also some rougher aspects of the neighborhood, some strange characters in the neighborhood, but they were in the minority.

We lived in that house for 9 years. We then bought another house and kept our first house for rent. I recently bought a second house on the same block. It has been a place where it is very easy to find good tenants.

I have no desire to live in that area again, but it is a place where I love having rental properties.

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