Tools to evaluate market area.

6 Replies

Hello everyone,

I'm looking to invest in the fort worth area of dfw, particularly tarrant county. I want to know what everyone uses to evaluate the areas that you choose to invest in. What are some of the things you look for that are positive as well as red flags? Do you target an area first, or do you look at the properties first and then research the market?

Thanks,

Marlon

School Districts are a key component to assessing areas to invest in.

Houses in highly rated schools districts will usually have high demand.

Hey Marlon,

It first depends on what you particular investing strategy is. In my opinion the next step would be to learn everything about Tarrant county, and what areas are high, middle, and lower class. The more you are actively looking for deals, and run your analysis the more knowledgeable you will be. Like @Tyler H. said School districts are huge motivators for home owners. That being said there's still ways to invest in less desirable areas just depends on your strategy. Red flags for one may be a green light for another. I'm a huge fan of multiple exit strategies. I've learned to evaluate markets all over Texas by taking every deal and figuring out how to make it produce money whether it be a Listing referral, Wholesale, Fix n Flip, Buy n Hold, Sub-to, Mortgage wraps. Or you can ask a local realtor. Hope this helped.

CJ Love

Originally posted by @Tyler H.:

School Districts are a key component to assessing areas to invest in.

Houses in highly rated schools districts will usually have high demand.

 Exactly right! 

I would go a step farther and tell you that highly rated elementary schools and the neighborhoods that feed them, within highly rated school districts, are a huge draw right now.  I know of 1 elementary school feeder area in Tarrant County where houses are selling in under 15 days at or above list.  It's completely ridiculous and makes the back end sale on any exit strategy so much simpler.

Also...for research...check out the site at the Texas A&M Real Estate Center.  It includes links to all the major research and information sites as one stop shopping, including census & labor stats.  Great resource!

http://recenter.tamu.edu/

My particular strategy is to buy and hold. I may consider a few fix and flips to generate some cash, But the end game for me is the but and hold. I like using the school district as a barometer for evaluating a target area. I think more of what I'm after our things like population growth, business growth, etc. Just looking for the starting points. Thanks for the responses. Keep the ideas coming!!!!

My particular strategy is to buy and hold. I may consider a few fix and flips to generate some cash, But the end game for me is the but and hold. I like using the school district as a barometer for evaluating a target area. I think more of what I'm after our things like population growth, business growth, etc. Just looking for the starting points. Thanks for the responses. Keep the ideas coming!!!!

Thanks for the link Hattie! I'm sure this will be very handy!

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