Updated almost 7 years ago on . Most recent reply
Criteria to Choose OOS Market
Hey Everyone,
Wondering what criteria you guys use to determine which OOS market to invest in? Specifically how to determine the market growth, opportunity for cash flow, and any other criteria that you may have based your first investment on.
I am looking to buy a multifamily property and would like to know what others’ preferences are.
Cole
Most Popular Reply
Hi Cole,
Work backward that's how you find an area. Heres what I mean.
1. How much money do you have to invest with? How much down payment will that be? How much reserve? Now you know what markets you can afford and not afford based on your finances. Prob narrows your search down to 2-3 markets.
2. You live in HI, How far do you want to travel? You sure you want to travel to the East Coast? Then you want to pick a market that you don't mind traveling to.
Honestly picking an area is not that important. Most new investors think that picking the correct area is the way to make money and become rich. Area actually doesn't matter. Having a process to analyze, find, and buy rentals is more important. You can be in the perfect market but if you don't know what you are doing you will lose money. This is like a stock investor saying. What's the best stock I should buy? I can give you my best idea but I can guarantee you will lose money over time. Why? The investor has no process. Focus on the process.