Can anyone help me with resources on how to choose a market?

Can anyone help me with resources on how to choose a market?

Northern CO · Member since 2019 · 34 posts · 5 votes

I'm looking for books, articles etc on how to choose a real estate market.  How do you determine this?  What process do you use to evaluate certain areas of the country?  I think it's pretty hard to make money for buy and hold in my area and that is what I am primarily looking to do.  

I know that population growth, jobs, economy are involved but how do you get information to evaluate these things? Does anyone know a good system of determining where a good place to invest is? What areas will grow in the coming years? Where you can find good buy to rent ratios for buy and hold or BRRRR strategy?

Where to invest?  This is the million dollar question for me.  I seem to be stuck here.  I've been lurking on this site a bit, listening to some podcasts and reading some real estate books but I need to focus on an area at this point.  I really don't even know where to begin except for the "midwest" which still seems like a huge area to try to zero in on.    

I'd like to find a place where the cost of the homes aren't incredibly high since I don't have a ton of money to throw around at this point and with rumors of a pending downturn on the horizon. I'd like to find an area that at least has a possibility of appreciation and an area that I can BRRRR. Is there a method of determining where a good place would be?

Any help would be greatly appreciated especially if anyone has a method of how they determined what area they chose.  

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  • Andrew SyriosPro Member
    Moderator
    Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
    7y
  • Real Estate Agent · Oklahoma City, OK · Member since 2019 · 956 posts · 600 votes
    7y

    As far as narrowing down in the midwest, I'm happy to give insight into Oklahoma. I've seen hundreds of out of state investors start or add to their portfolios in Oklahoma City, because of the stability and great price points. 

  • Oklahoma City · Member since 2016 · 27 posts · 7 votes
    7y
    Originally posted by @Kiera Underwood:

    As far as narrowing down in the midwest, I'm happy to give insight into Oklahoma. I've seen hundreds of out of state investors start or add to their portfolios in Oklahoma City, because of the stability and great price points. 

     Hey Kiera. What is the market like when it comes to 2-4 units? Are they scarce or is house hacking a good strategy there?

  • Ben ScottPro Member
    Property Manager · Oklahoma City, OK · Member since 2019 · 578 posts · 351 votes
    2w

    I'd look at a market/state with:

    -Landlord friendly laws

    -Affordable property insurance

    -States with income tax as those states without income tax use property tax to offset

    We work with investors in Oklahoma City, helping them identify properties and getting the transaction closed. Many clients are having success with new construction.

    BRRRs can be tough in this current market, especially when done remotely. You'll likely have to find something off-market where you're not competing with other buyers on the MLS.

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