First of all, thank you for coming into this discussion! Secondly, I will keep it nice and short. I am looking to buy and rehab an out of state rental. I am looking into the mid west and I am having a hard time deciding what state I should invest in. The reason I am having a hard time is because I really don't enjoy doing research on states. My strength are negotiating, numbers, and rehabs. Yet, since one can't be blindly going into a new market, I have been doing my research. My major focus is Wisconsin, primarily because a friendly investor that currently owns rental there has suggested I look there to.
My question is, what strategies do you guys have in place to efficiently analyze a new state/area/market?
P.S: I have read David Greene's book on LDREI, I am looking to see if any of you have a system in place or kind of step by step guide that you follow in order to not waste to much time in deciding.
I designed a software program for this. It maps out and overlays properties for sale, sold, and for rent in order to find the micro-markets that are good to invest in.
@Luis Cortazar your backyard is always the best place to invest. If the numbers don't make sense you have to go elsewhere, but I would rank ease of access higher in importance than anything else. In other words, if you can drive there, it's better than fly. And a short, direct flight beats 3 layovers.
We self manage (not much to do on long term fully remodeled SF) and for ease of access we consolidated our portfolio to a 20 min radius around where I live. Probably also because we prefer the suburb to Milwaukee proper. Anyway, after ease of access I would put your knowledge of that area (have you lived there and can relate to different neighborhoods). Next would be your team and the relationships and connections you have there. Maybe you have family there and visit a few times a year.
In other words, I believe, that I can do better in city B, if I have easy access, know it well and have people there, than I could do in City A (difficult to get there, don't know much about it and don't have good contacts) - even though the statistics would say that city A is better to invest.