To invest in your local market or not?

8 Replies

Hi All,

I live in the greater Austin area and am gathering information to eventually jump into investing. My dilemma is that I read a lot about people saying to understand your local market. I am a lender in Austin, dealing with primarily SFH's.

Austin is extremely competitive in SFH and even more so in the multi family space. My preference would be investing in multi family homes, but given the above- would it make more sense to look outside the Austin market and go for multi family homes or start in the Austin area with SFH's?

Thanks in advance!

Knowing your own market is important, but what you do with that knowledge is more important. Many REI say you should invest in your own market because you know it. That's wrong. That's backwards. You should know the market you invest in.

Just because you know a market, doesn't mean you should invest there.  In fact, if that knowledge tells you that market is a bad market to invest in, them don't invest there.  This especially applies to "your own market".

Hello Aaron!  I agree with Joe, your first responder. I think you should invest within about an hour from your home.  The only way to invest farther is to invest with a Turnkey Company with a good reputation and experience including property management or someone that you trust, really trust.

Good luck to you!

Originally posted by @Michael Lewis Lee :

Hello Aaron!  I agree with Joe, your first responder. I think you should invest within about an hour from your home.  The only way to invest farther is to invest with a Turnkey Company with a good reputation and experience including property management or someone that you trust, really trust.

Good luck to you!

 That's not what I said

Turnkey is akin to a jack of all trades and master of none, imo. Maybe there are some good ones out there. Idk. I know that I outsource things that I am not an expert at. For example, I will outsource electrical issues to an master electrician because I don't want to get shocked... : ) There are nuances that occur regularly within each specialty that only those specialized in that area can navigate well. 

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