Analysis paralysis or a good plan?

Question

Joe Villeneuve · Answer

Micro-markets are the markets within the larger markets that match the specific criteria you need for rentals and/or flips.  They can be large or as small as a few square blocks, but they are filled with the properties that match your hold/flip criteria.

It's important to find them.  When you don't, you are susceptible to being sold a property that looks like it has a correct valuation based on comps, but the comps (although they may be very close...even across the street) are not valid because they are not part of the micro-market.

When you find/analyze for micro-markets, you are analyzing every property in that micro-market by default.  So when one comes up for sale, you've already analyzed it.  If it doesn't match your needed criteria, just move on.  If it matches, move "fast".

Chaz Mathias · Answer

@Jacob Morris this is a great plan. I'd also recommend "Long Distance Real Estate Investing" by @David Greene, "The Book on Managing Rental Properties" by @Brandon Turner, "Set for Life"  by @Scott Trench and "Crushing It" by Brian Murray

Sam LLoyd · Answer

I think your plan is great, as long as you follow through.  Do the reading!  Do the podcasts and analyzing deals!  I like Building Wealth one house at a time for a book, and I like Wheelbarrow profits and the old dawg REI network for podcasts that you can really learn from.  My first investment was long distance, and it did not turn out well.  I know now that it could have, but investing is a skill that needs to be learned.  I think long distance investing has a slightly higher learning curve, and waiting a year to avoid the higher learning curve is a solid plan.  It's been said that you can make money in any market.  That means both location and time.  Don't feel any pressure that all the deals will be gone when you get back.  The deal of a lifetime is always right around the corner!

Jacob Morris · Answer

@Joe Villeneuve "Micro markets" i understand the term but probably not the application. Do you mind expanding a little more on this? We are most interested in starting out with SFH or multi (2,3,4).

Joe Villeneuve · Answer

Plan is very good.  Never "just pick a market and invest".  One of the things you should be learning during that next year is how to analyze markets to find the micro-markets.  That's where you invest.

Analysis paralysis or a good plan?

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