How to Find a Good Local Housing Market

If you’ve been following Jason Hartman’s income property investing for any length of time, you know he likes to talk about buying local markets, since there is no such thing as a “national” housing market. But don’t take this advice to mean you should automatically invest in YOUR local market. Maybe your local market is crappy.

In this context, Jason means you need to examine the local market conditions free of bias from wherever you live. When it comes to real estate, comparing a deal in Orange County, California, to a deal in Indianapolis is nonsensical. It’s (pun intended) oranges to apples. Here are a few of the factors Jason considers before pulling the trigger.

Follow the Baby Boomers

Though we have early indications that Gen Y is making noise as a generation growing in numbers, don’t forget the Baby Boomers have the money. Look for areas where they are retiring. They like natural beauty, low cost of living, recreational opportunities, and typically choose right-to-work states that aren’t especially friendly to large unions and are pro business.

Landlord Friendly Courts

Too many prospective investors don’t take into account the prevailing legal climate in a state before investing there. This should be a very high consideration on your list. New York and California are notoriously lenient when it comes to evicting a tenant. Texas, on the other hand, allows you to get a non-paying person out of your investment property in a hurry. Other considerations when combing cities within your target area:

• diversified employment base
• good cash flow
• appreciation potential
• special tax zones

Get Educated

There are a number of ways to research an area for investment opportunities. A good place to start is the U.S. Census for demographic information like income, etc. And don’t forget the U-Haul website. It and similar websites offer up an idea of which cities people are leaving and which they moving to. Consider these “long distance” approaches a way to get acquainted with an area, though eventually you’re going to want to put boots on the ground.

Visit the Trenches

Like any other industry, there are people who work in the trenches in real estate. We’re talking about property managers, real estate brokers, and developers. These people can be a great source of information that you might not find anywhere else. They can give you the scoop on what the local market and tenants in any particular area are really like. (Image: Flickr | Images_of_Money)

The JasonHartman.com Team
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