how do you choose a market?

Question

Hello! Looking to invest in real estate and have been reading books listening to podcasts etc. ( All bigger Pockets! Just cant seem to figure out which market to start in. I am in California ad everything is too pricey here but willing to do out of state. I keep going down rabbit holes and honestly need some advice on figuring out the best market to start in. I know its opinion based and theres likely not 1 right answer but I don't even know how to narrow it down without going insane. Budget is 200K. Obviously would love not to spend as much if don't need to. Looking for something that has cash flow AND appreciation. I know thats really hard to predict so please take it easy on me. Just looking to form a plan to even start.

Thank you so much for any help!

Eagle Yeh · Answer

I understand your feeling. It's like looking at a menu with 200 choices when you really don't have a strong preference.

I am not experienced so take my words with a grain of salt. My current strategy is to

• Pick 5 places that you know personally or mentioned by people on the forum
• Narrow down to 3 with research in the population growth, census data, price to rent ratio...etc.
• Call a few real estate agents/brokers that you can find in those areas (you can find them in BP or just google) to learn about the investment market
• Start analyzing deals :)

I personally think the worst you can do is to get stuck. Set a goal to connect with at least two new people a week in the next month. If the number makes sense, place an offer. Don't get too hung up on losing the bid when it happens, and just keep repeating.

The menu looks huge, but if you know you just want beef or salad, you can quickly narrow down your choices. The bottom line is you are likely not going to eat only once. If you picked something you didn't enjoy, pick something else next time :)

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