How to Analyze a Market

[David Smith]

Hey Bigger Pockets community!  My name is David, and I'm just starting out in real estate.  I'm 19, currently in college, and ever since reading "Rich Dad, Poor Dad" I've been super excited about real estate.  I just moved to Carbondale, IL and everyone here loves talking about how horrible the economy/market is, which makes me not want to invest here.  So my question is, what resources can I use to evaluate a market when trying to decide if I want to invest there?  Are there forms on the local government website that I need to find?  Anything helps! Thanks!

[Kevin Dean]

Hey @David Smith. Here are a few things that I look at when determining whether or not I would like to enter a market for the long term.

1. Population Growth

2. Job Growth

3. Rent Growth

4. Tenant/Landlord Laws

5. Competition in the market

6. Do I have any connections and established relationships in this market?

For me, positive rent, job and population growth are non-negotiable's! You can find data on this at www.bls.gov

as well as at www.city-data.com .

It may take  time to narrow your search, but the 6 drivers above should give you a good place to start. Just as investing in the stock market, you want to think long term. Nobody can consistently time a market over the long term (stock market, real estate, options, crypto-currency, etc.). 

So the key is to focus in on the fundamentals of a market, and to let those drive your investment decisions.