{"id":130986,"date":"2020-10-23T05:00:31","date_gmt":"2020-10-23T11:00:31","guid":{"rendered":"https:\/\/www.biggerpockets.com\/blog\/?p=130986"},"modified":"2022-09-27T15:23:11","modified_gmt":"2022-09-27T21:23:11","slug":"determining-market-invest-remotely-dream-investment","status":"publish","type":"post","link":"https:\/\/www.biggerpockets.com\/blog\/determining-market-invest-remotely-dream-investment","title":{"rendered":"How to Choose the Right Market to Invest in Remotely"},"content":{"rendered":"<p>Imagine receiving a $20,000 check to purchase a rental property as well as step-by-step guidance from some of the most experienced real estate investors in the industry. Well, that&#8217;s exactly what the <a href=\"https:\/\/www.biggerpockets.com\/blog\/contributors\/steverozenberg-2\" target=\"_blank\">Dream Investment Adventure Series<\/a> is all about.<\/p>\n<p>&nbsp;<\/p>\n<p>Follow along with our contest winner, Joe, and his journey of purchasing an out of state rental property through the mentorship of Steve Rozenberg, Head of Investor Education for Mynd. Throughout the next two months, the pair will research markets, build a team, purchase a property, complete a renovation, lease the property, and everything in between\u2014without Joe ever seeing the property in-person.<\/p>\n<p><a href=\"https:\/\/www.biggerpockets.com\/blog\/learn-invest-remotely-joining-dream-investment-adventure\/\" target=\"_blank\" rel=\"noopener noreferrer\">In last week\u2019s episode<\/a>, Joe established his investment strategy and goals, and the potential real estate markets were narrowed down to four.\u00a0 His homework was to research Houston, Atlanta, San Antonio, and Tampa Bay and compile a list of data to analyze and compare these markets.<\/p>\n<p><iframe loading=\"lazy\" src=\"https:\/\/www.youtube.com\/embed\/1CjD6I0SBwQ\" width=\"560\" height=\"315\" frameborder=\"0\" allowfullscreen=\"allowfullscreen\"><\/iframe><\/p>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/find-multifamily-market-invest\" target=\"_blank\" rel=\"noopener noreferrer\">8 Ways to Identify the Best Places to Buy Rental Property<\/a><\/em><\/p>\n<h2>How to Select the Right Market<\/h2>\n<p>In today\u2019s episode, Joe shares the data he collected for the four targeted real estate markets with Steve so they can select the city that best fits his goals. Let&#8217;s dive into the top four markets and some of the trends!<\/p>\n<h3>Atlanta<\/h3>\n<ul>\n<li>26 Fortune 1000 companies<\/li>\n<li>37.3% real estate appreciation in 10 years<\/li>\n<li>11.6% real estate appreciation in last year<\/li>\n<li>$259,000 median home value<\/li>\n<li>$1,600 average rent on a 3-bedroom home<\/li>\n<li>$59,500 median income<\/li>\n<li>107 cost of living index<\/li>\n<\/ul>\n<h3>San Antonio<\/h3>\n<ul>\n<li>7 Fortune 1000 companies<\/li>\n<li>43% real estate appreciation in 10 years<\/li>\n<li>8.3% real estate appreciation in last year<\/li>\n<li>$175,000 median home value<\/li>\n<li>$1,440 average rent on a 3 bedroom home<\/li>\n<li>$55,000\u00a0 median income<\/li>\n<li>89.7 cost of living index<\/li>\n<\/ul>\n<h3>Tampa Bay<\/h3>\n<ul>\n<li>7 Fortune 1000 companies<\/li>\n<li>47.3% real estate appreciation in 10 years<\/li>\n<li>9.2% real estate appreciation in last year<\/li>\n<li>$219,000 median home value<\/li>\n<li>$1,640 average rent on a 3-bedroom home<\/li>\n<li>$48,500 median income<\/li>\n<li>100 cost of living index<\/li>\n<\/ul>\n<h3>Houston<\/h3>\n<ul>\n<li>47 Fortune 1000 companies<\/li>\n<li>48.7% real estate appreciation in 10 years<\/li>\n<li>6.6% real estate appreciation in last year<\/li>\n<li>$185,000 median home value<\/li>\n<li>$1,650 average rent on a 3-bedroom home<\/li>\n<li>$61,000 median income<\/li>\n<li>96.5 cost of living index<\/li>\n<\/ul>\n<h3>Sources of data<\/h3>\n<ul>\n<li><em><a href=\"https:\/\/www.biggerpockets.com\/insights\/property-searches\/new\" target=\"_blank\">BPInsights<\/a><\/em><\/li>\n<li><em><a href=\"https:\/\/www.census.gov\/\" target=\"_blank\" rel=\"noopener\">Census Bureau<\/a><\/em><\/li>\n<li><em><a href=\"https:\/\/www.city-data.com\/\" target=\"_blank\" rel=\"noopener\">city-data.com<\/a><\/em><\/li>\n<li><em><a href=\"https:\/\/www.bestplaces.net\/\" target=\"_blank\" rel=\"noopener\">bestplaces.net<\/a><\/em><\/li>\n<\/ul>\n<p><strong><em>Related: <\/em><\/strong><em><a href=\"https:\/\/www.biggerpockets.com\/blog\/2015-05-10-invest-out-of-state-how-to-analyze-a-city\" target=\"_blank\" rel=\"noopener noreferrer\">Looking to Invest Out of State? Here\u2019s How to Pick and Analyze a City<\/a><\/em><\/p>\n<h2>Analysis of the Markets<\/h2>\n<p>It is important to look at the type of industries that are feeding a city to determine the health of the economy and potential for growth. Atlanta and Houston have a significant number of Fortune 1000 companies that offer the industry diversity that makes a market desirable.<\/p>\n<p>Joe immediately narrows the choices down to these two markets for that reason and ultimately concludes he is interested in investing in the Atlanta market.<\/p>\n<h2>Why Atlanta Is a Great Market to Invest in<\/h2>\n<ul>\n<li><strong>Solid economy <\/strong>&#8211;\u00a0Atlanta has a solid economic base due to the number of major corporations that are invested in the city.<\/li>\n<li><strong>Appreciation has room to grow<\/strong> &#8211; Atlanta\u2019s real estate appreciation over the last 10 years has seen the least amount of growth of the four markets. However, the appreciation in the past year far exceeds the others\u2019 numbers. Joe believes that Atlanta may have more room for future growth and appreciation.<\/li>\n<li><strong>Steadily rising rent rates<\/strong> &#8211; Joe is projecting that rents will continue to rise as the growth and appreciation increase based on Atlanta\u2019s higher median income.<\/li>\n<li><strong>Diversifying the investment portfolio<\/strong> &#8211; Joe owns property on the coast of North Carolina, so he prefers an inland location that is less prone to natural disasters. Atlanta is a perfect addition to geographically diversify his portfolio.<\/li>\n<\/ul>\n<h2>Homework Week #2: Assemble a team on the ground in Atlanta<\/h2>\n<p>Joe\u2019s homework for next week is to assemble a top-notch team in the Atlanta area. When working a deal remotely, it is important to have experienced, highly reputable team members you can trust to offer you solid advice.<\/p>\n<p>Joe will use the <a href=\"https:\/\/www.biggerpockets.com\/forums\" target=\"_blank\" rel=\"noopener noreferrer\">BiggerPockets Forums<\/a> to network with other investors in the Atlanta area and compile a list of recommended Realtors and contractors.<\/p>\n<p>In addition to contacting these potential team members, Joe will consult with Mynd\u2019s Atlanta property manager to get their suggestions on which areas are the best to look for rentals. With access to proprietary data such as days on market, rental rates, etc. in the Atlanta rental market, they can compile a list of neighborhoods that best fit Joe\u2019s strategy.<\/p>\n<p>Once the property is acquired, the property management team becomes Joe\u2019s essential operations team, which is vital to successfully seeing returns year after year.<\/p>\n<h2>Your Team Is the Key to Success<\/h2>\n<p>When purchasing an investment property remotely, having the right team in place before looking for a property can be the difference in your being successful or not. Communication with your team is important, and they need to have a comprehensive understanding of what you are looking for out of the property.<\/p>\n<p>Tune in next week when Joe learns how to use leverage\u2014the experience of his Atlanta team to search for deals that fit his strategy.<\/p>\n<p>To learn more about Joe\u2019s investing journey, gain access to investor tools and resources, and help your own remote investment journey, check out the <a href=\"https:\/\/www.mynd.co\/dream-investment-adventure\/?utm_source=online_partnerships&amp;utm_medium=biggerpockets&amp;utm_campaign=dream500&amp;utm_term=bp_blog_post&amp;utm_content=video\" target=\"_blank\" rel=\"noopener noreferrer\">exclusive destination page<\/a> for BiggerPockets fans only. You\u2019ll also find a limited-time BiggerPockets <a href=\"https:\/\/www.mynd.co\/dream-investment-adventure#BP-Deal?utm_source=online_partnerships&amp;utm_medium=biggerpockets&amp;utm_campaign=dream501&amp;utm_term=bp_blog_post&amp;utm_content=video\" target=\"_blank\" rel=\"noopener noreferrer\">exclusive offer for property management<\/a>!<\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Imagine receiving a $20,000 check to purchase a rental property, as well as step-by-step guidance from some of the most experienced real estate investors in the industry&#8230; Now watch what happens when it becomes a reality in the Dream Investment Adventure series.<\/p>\n","protected":false},"author":612019,"featured_media":131296,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[5524],"tags":[],"class_list":["post-130986","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-real-estate-investing-for-beginners"],"acf":[],"comment_count":0,"_links":{"self":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/130986","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/users\/612019"}],"replies":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/comments?post=130986"}],"version-history":[{"count":0,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/posts\/130986\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media\/131296"}],"wp:attachment":[{"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/media?parent=130986"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/categories?post=130986"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.biggerpockets.com\/blog\/wp-json\/wp\/v2\/tags?post=130986"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}