How to Identify and Select Markets

Question

Hello All!

New here and trying to determine if it makes sense for me to find an investment property in my hometown or look for another market where there economics are more attractive.

Are there benefits to having your first investment near where you live if you plan to use a property management company?

When looking at markets: what are some things that indicate a strong market to invest in?

Thanks!

Marcus Auerbach · Answer

Half of the BP members living on the coast would kill to buy deals like you have in your backyard!

Drew Sygit · Answer

@Jewel G Bolden Michigan courts are considering making a COVID tenant-friendly rule permanent.

The rule requires courts to NOT make a ruling on the first hearing date, to give a tenant more time to seek legal aid.

It's not devastating, just extends the process.

Colton Hahn · Answer

We always look at certain fundamentals such as: Income growth, population growth, job growth etc.

These are always great indicators for future growth :)

Jewel B. · Answer

Thank you for sharing. Great to know!

Drew Sygit · Answer

@Jewel B. outside the City of Detroit, evictions used to take 45-60 days. They are currently taking 60-90 days.

36th District Court in Detroit used to take about the same 45-60 days, but not uncommon for some to hit 90 days. Currently, they are taking 120-180 days - which is actually an improvement from earlier this year.

The judges claim the delays are due to the size of their dockets, but the reality is:

1) They are being too tenant-friendly

2) They have a shortage of court staff

Jewel B. · Answer

Thank you for the clarification. About how long does the eviction process take in Michigan now? What are your thoughts even on taking the ease of evictions into consideration when selecting a market? Sure, we screen tenants but sometimes they end up being a miss, especially looking in B or C neighborhoods.

Jewel B. · Answer

I've heard that Michigan wants to change their laws to be more tenant-friendly rather than landlord-friendly by making evictions very difficult. Do you know anything about that?

Scott Sklare · Answer

Hi Andrew, good question and congratulations getting started.  I am biased toward the midwest, and in particular Wisconsin.  If you want to discuss feel free to give me a call.  Check your inbox.

Anthony L Amos Jr · Answer

I have not invested in Grand Rapids but only hear good things. Along with Lansing it's a growing city in the state. Start there! The benefits is you can self manage and may be able to acquire more cashflow, you are familiar with the area, local regulations, and laws.

Drew Sygit · Answer

@Andrew Reames check out the Metro Detroit market - which you can drive to!

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/...

How to Identify and Select Markets

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