How do I choose a market/location to invest in?

[Vincent Lattuca]

What are some things that you look for when choosing a market to invest in? I am just starting out on my real estate journey and would love some advice.

[Eliott Elias]

Choose one you can drive 30 min to from where you live. There is a lot you are going to learn just by being in close proximity to the property. 

[Joe Villeneuve]

One that cash flows and is profitable.

[Account Closed]

It truly depends on what your investment objective is. It also depends on how local you want to be. If you're looking to stay within an hour of home, try to find a spot that has modest population growth (maybe 2% YoY) and rents that support your potential mortgage, operating expenses with maybe $200 left for you at the end of the month. 

[Jose Jacob]

Starting at your backyard(Local Market)  will be the best bet.  You will learn a lot from it.  RE Investing is a long term journey with lot of bumps.

Good Luck

[Nathan Gesner]

Quote from @Vincent Lattuca:

What are some things that you look for when choosing a market to invest in? I am just starting out on my real estate journey and would love some advice.

I start at the state level with fair Landord-Tenant laws. Then narrow in on a city that shows stable growth and job market that will attract renters. Then narrow in on specific neighborhoods based on jobs, schools, shopping, crime levels, and other factors.

[Account Closed]

Hey Vincent,

I work at a real estate investment advisory firm and we are investing in two midwestern markets. Shoot me a DM, I'd be happy to tell you what we see in those and some things we look for in markets. 

[Matthew Irish-Jones]

Quote from @Vincent Lattuca:

What are some things that you look for when choosing a market to invest in? I am just starting out on my real estate journey and would love some advice.

Every agent on here has the best market to invest in including me :)  Start with  your goals and your available Capital and work backwards.  Appreciation or cash flow?  Do you have 15K or $1,000,000  if you have under 100K that is going to further dictate what markets you qualify for.  Last point, and not sure everyone will agree with me here:  Your team is as important or more important than the city.  A crappy PM company in a good city is still going to have poor results.  A great network in a tougher city and you will might get good results. 

[Sam McCormack]

@Vincent Lattuca

Hi Vincent, the first thing you want to do is find your reason/target for real estate investing. Do you want immediate cash flow? Try some markets in the midwest. Want more appreciating markets? Try something along the cost like Florida maybe. You may not know which market will do what, but posting on here saying your target and asking for people who can help you find an area with your target is where you should start. You will find people on here are very willing to help you if you let them. I am an agent in Cincinnati for example, if you want a cash flowing market, you may find what you like in Cincinnati. Let me know if you have any questions regarding this post!

[Ricardo Hidalgo]

Quote from @Vincent Lattuca:

What are some things that you look for when choosing a market to invest in? I am just starting out on my real estate journey and would love some advice.

Schools rating 

Commercial coming into the area

Median income 

How much demand or land available 

Economy and what drives it

Turn over period with average appreciation

Job stability 

[Aj Parikh]

Hi Vincent, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

[James Wise]

Quote from @Aj Parikh:

Hi Vincent, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

Vincent,

I'm not really in the biz of saying go here or go there. But, having sold more than $200 million in Cleveland real estate to out of state investors, I can for sure tell you that if you end up looking at Cleveland, I you've got to read The Ultimate Guide to Grading Cleveland Neighborhoods.

It's true lots of money can be made here, but a lot of it can be lost as well. The biggest mistake I see out of state investors make here in Cleveland is buying solely based on low price. There is more to it than that. You've got to understand the level of risk some of these Cleveland neighborhoods have. The guide should help you measure that.

[Jewel B.]

Quote from @Aj Parikh:

Hi Vincent, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

What are the areas, neighborhoods, streets, and/or zip codes to avoid in and around Cleveland?

[Aj Parikh]

Quote from @Jewel B.:

Quote from @Aj Parikh:

Hi Vincent, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

What are the areas, neighborhoods, streets, and/or zip codes to avoid in and around Cleveland?

 I would recommend some of the neighborhood websites that provide you ratings. But more than anything, I would pick up the phone and call 5 property management companies and ask them the neighborhoods you are considering and see what their advise would be. 

[Jewel B.]

Quote from @Aj Parikh:

Quote from @Jewel B.:

Quote from @Aj Parikh:

Hi Vincent, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

What are the areas, neighborhoods, streets, and/or zip codes to avoid in and around Cleveland?

 I would recommend some of the neighborhood websites that provide you ratings. But more than anything, I would pick up the phone and call 5 property management companies and ask them the neighborhoods you are considering and see what their advise would be. 

 Such as CrimeGrade and NeighborhoodScout?

Great idea re the PM companies.

Thanks!

[Drew Sygit]

@Vincent Lattuca too vague a question.

We're all guessing at what you're goals are to give you answers.

Please tell us more about what you hope to accomplish, so we can give better advice!

[V.G Jason]

Quote from @James Wise:

Quote from @Aj Parikh:

Hi Vincent, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

Vincent,

I'm not really in the biz of saying go here or go there. But, having sold more than $200 million in Cleveland real estate to out of state investors, I can for sure tell you that if you end up looking at Cleveland, I you've got to read The Ultimate Guide to Grading Cleveland Neighborhoods.

It's true lots of money can be made here, but a lot of it can be lost as well. The biggest mistake I see out of state investors make here in Cleveland is buying solely based on low price. There is more to it than that. You've got to understand the level of risk some of these Cleveland neighborhoods have. The guide should help you measure that.

Wow this is extremely resourceful for people like myself looking at this market out of state. What would be supplemental if we could see the migration of these colors since the last 5 years, or even since pandemic? Did the green get greener and the yellow get redder in the areas posted or even did the some red turn into yellow or light green?

I'm not hesitant to go in a yellow area, if it was red just 2 years ago if you catch my drift.

[James Wise]

Quote from @V.G Jason:

Quote from @James Wise:

Quote from @Aj Parikh:

Hi Vincent, I have found value investing in Cleveland, OH because it is home to Cleveland Clinic, lot of good neighborhoods, landlord friendly laws, stable appreciation and good cash flowing properties. There are also abundant opportunities for small multi family and SFH. I have been able to scale up to 12 doors in 2 years so definitely recommend this area. Feel free to reach out and we can discuss.

Vincent,

I'm not really in the biz of saying go here or go there. But, having sold more than $200 million in Cleveland real estate to out of state investors, I can for sure tell you that if you end up looking at Cleveland, I you've got to read The Ultimate Guide to Grading Cleveland Neighborhoods.

It's true lots of money can be made here, but a lot of it can be lost as well. The biggest mistake I see out of state investors make here in Cleveland is buying solely based on low price. There is more to it than that. You've got to understand the level of risk some of these Cleveland neighborhoods have. The guide should help you measure that.

Wow this is extremely resourceful for people like myself looking at this market out of state. What would be supplemental if we could see the migration of these colors since the last 5 years, or even since pandemic? Did the green get greener and the yellow get redder in the areas posted or even did the some red turn into yellow or light green?

I'm not hesitant to go in a yellow area, if it was red just 2 years ago if you catch my drift.

 It's a living guide, it get's updated if I feel there has been a major ****. Although, it should be noted, entire areas don't make such massive shifts in such short periods of time. You're not likely to see any major change in a metro area from pre to post pandemic. Anyone telling you that you will, is blowing smoke to get their hands on your money.

[Nate Sanow]

Many will pitch their own market, and while technically I am not an exception to the rule, I would say if you are looking into long distance investing just make sure that you gel really well with whomever you are considering working with to acquire and manage the assets. The ROI is one important aspect of that, but the communication and relationships are just as important starting out.