2 min read- In a recent Instagram Reel, real estate investors Ali and Josh Lupo shared that they buy rental properties within three miles of a Starbucks, using the chain’s market research as a shortcut.
- Starbucks proximity may signal desirable, growing neighborhoods, though recent store closures mean it isn’t a foolproof indicator.
- Trader Joe’s, Whole Foods, Costco, college campuses, and hardware stores can also help investors identify promising rental markets.
Finding success in the rental business can be a beast. Buying in the “right” ZIP codes, offering unbeatable amenities, and keeping rates competitive are all part of the constant juggling act for landlords. For anyone looking to break into the rental and leasing business, scouting the right property is the first step. But some experts say a quick Google Maps search could make the process a whole lot easier.
Personal finance influencers Ali and Josh Lupo, better known as @theficouple, specialize in house hacking and scaling real estate portfolios. In a recent Reel, the duo shared their go-to hack for evaluating potential investment areas.
Their secret? They only buy rental properties within a three-mile radius of the nearest Starbucks. Their reasoning is simple: The coffee giant invests heavily in market research before opening a store, weighing factors ranging from local demographics and income levels to traffic patterns and growth potential. For the Lupos, a nearby Starbucks can serve as a shortcut, saving them some of the time and effort that goes into researching an area from scratch.
“We feel confident having real estate nearby,” the couple wrote in their on-screen text. “Starbucks spends hundreds of millions of dollars on market research to determine if a location is growing and suitable for their business. And last time we checked?! We don’t have hundreds of millions of dollars to do our own market research,” they joked in the caption.
While Starbucks has long been viewed as a potential indicator of desirable real estate, the coffee chain has also closed hundreds of locations in recent years, including stores in major markets such as New York and Los Angeles. So, if Starbucks alone isn’t a foolproof signal, what other brands might point investors toward promising areas?
The Lupos suggest looking for popular grocers like Trader Joe’s and Whole Foods, as well as members-only warehouse retailer Costco. Proximity to college campuses and hardware stores also gets their stamp of approval.
So, if you’re looking to make money in the rental market, your property search might start somewhere unexpected: the local shopping scene.
