Articles

Best Rental Properties


Today we’re going to talk
about the number-one mistake new real estate investors make. Let’s dive in. [MUSIC PLAYING] Hey there. I’m Clayton Morris. I’m the president
of Morris Invest. And I am a long-time
real estate investor. And when I first started
in real estate investing, I made this simple mistake. And I’m going to teach
you what that is today. And I’m sure many
of you are probably just getting started as well. And probably, you’re poised to
make that very same mistake. The number one mistake that
new real estate investors make is they assume that
the best properties are in their own backyard. And that’s simply not the case. When you’re buying
rental properties, you want to start looking
outside of your own backyard. And most people start to look in
neighborhoods like this, right? This is an A-level
neighborhood where we’re walking through right
now– expensive homes. They’ve got driveways,
multiple-car garages. They have generators, multiple
air conditioning units. You absolutely are
not going to want to buy a rental property in a
neighborhood like this– too costly, taxes are too high,
and your return on investment is going to be way too low. So my favorite places
to buy rental properties are in C and B neighborhoods. Where do you find C
and B neighborhoods? Well, I’ve got a
whole video series on what the differences between
an A, B, and C neighborhood are. You can click on the description
below this video to watch that. But the number one mistake
that new investors make is they call up a realtor
on a Saturday afternoon. They decide that
they’re going to go out, and they’re going to
look for properties in a neighborhood like
this, thinking, yeah, maybe we’ll buy a $300,000,
$400,000 house to rent and rent out to tenants. And that’s simply
a terrible idea. I mean, I’m just walking through
this neighborhood right now. And I actually haven’t been
down this street before. It’s a lovely little street. I guarantee you these houses
are in the hundreds of thousands of dollars. There’s an Audi
parked in the street. So when new investors
start out, they think, honey, let’s go out
on a Saturday afternoon. Let’s meet with a realtor. And let’s drive around
the neighborhoods that we know already. Uh-uh. Remember, we’re
looking for value. We’re looking for a high
return on investment. And the best rental properties
are not in your own backyard. Mistake, huge mistake. So click on the link
below in the description to see more about the
differences between A, B, and C neighborhoods. And I’ll also reveal to you
my favorite neighborhoods to buy rental properties. And you will be loving
it because the return on investment is through the
roof if you buy correctly. I’m Clayton Morris. Please subscribe to our
other videos in our series. We publish videos every
week, multiple times a week. We try to bring as much real
estate investing value to you and helping you along your
real estate investing journey. I smell a barbecue. See you next time. [MUSIC PLAYING] Here we are at 3289
[? Schofield. ?] This is one of our rehabs we’re
in the middle of right now. So the whole house–

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