Looking to invest out of state, need help
Hello everyone, I was hoping to get some general advice about how to pick a handful of cities to analyze for my first investment acquisition.
I have put together a small pool of investors and we have ~150k in seed capital. However, due to the fact we all live in southern CA, that honestly wont get a whole lot even if we leverage it and the returns are so low most deals honestly dont make a lot of sense.
So we have decided to look out of state, but want to at least put some research and analysis into the decision. I was hoping to get some ideas from some members here on what type of criteria would be most important. My thoughts so far:
Population growth
Rent growth
Income growth
Employment growth
Any idea about other metrics and which would be the most useful for choosing a target metro region? Many thanks.
Ps. I already asset manage a small portfolio of about $3M in assets remotely so I do have a solid operational understanding of multifamily real estate, but this would be my first acquisition and first asset out of state so any advice or thoughts would be greatly appreciated.
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Great question. For us we only go to landlord friendly states. This already narrows the playing field down to just 8 states. Then I pick 3 states that interest me most (this could be based on the economies, resources I have tied over there, etc.).
Hopefully that helps.