How to Pick a Market?

Question

Hey everyone!

I am taking the first steps to purchasing my first rental property in Texas. I plan on "BRRRR-ing" a small multi-family property which will cash flow.

The problem I am facing is deciding which market (or city) to pick. I find myself analyzing deals in random cities, but this takes a lot of time. I am hoping there is a faster way to pick a market.

Any advice on how to pick the right market? Or the best way to learn about a city's housing market?

P.S. If anyone just happens to have some insight on which city along the I-35 corridor has what I am looking for just as a starting point, that would also be greatly appreciated.

Jordan Moorhead · Answer

@Wesley Berry doing a BRRRR on a small multifamily and having it cashflow afterwards with LTR is a tall order anywhere. How much money do you have to work with and where do you currently live?

Karl McGarvey · Answer

Choose where you would want to live if you were a renter. Where are the jobs, good schools, and amenities that people want.

Also keep in mind that major cities have submarkets within them, ex: The West side of Houston may demand higher rents than the North side, or occupancy rates may be higher on the South side etc.

I would schedule some calls with lenders, get an idea of what you are approved for, and how much you want/need to spend to get the type of property that fits your investing criteria. Then interview a few agents from different markets and get an idea of what each area can do for you. Also recommend interview property managers in those areas to help build a well rounded answer. And always verify information... especially when the people you are interviewing make money off of you doing business with them... magically that creates a bias!

Nathan Gesner · Answer

There are literally hundreds, maybe thousands of markets to invest in. Stop analyzing yourself to death. Find one that is affordable, low crime, good schools, and start investing.

Eliott Elias · Answer

There is no better market than Austin, Texas. Stop looking elsewhere and take advantage of what we have to offer.

Udi Milo · Answer

Wesley,

I would love to connect via Zoom to learn more about how you're thinking about your strategy and compare notes.

DM me if you're interested.

How to Pick a Market?

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