Choosing Market to House Hack
Hi everyone!
When do you think it is too early to choose a market to house hack? I graduate college in December 2021, and am hoping to house hack right after I get out. I'm hoping to get a remote job so I can choose my own location. Should I be worried about choosing too early because a lot can happen in the span of a year? Or since I plan to hold the property long term, do I not have to worry about this as much?
I'd like to get started researching the area, a potential team, and get a feel for the market, but I'm afraid a lot can change and in a few months I might change my mind. Should I choose a market now and get researching the specifics of that market? Or keep learning in the meantime and choose one in a few months?
I'd love to hear everyone's thoughts!
Most Popular Reply
Hi Cole, first of all congrats on already looking into real estate investing! That is awesome. I really don't think its too early. If anything make a spreadsheet of the markets you are analyzing and you can always update them as the year goes on. As you said that since you are doing buy and hold you will want to research a markets potential not just now but in the future too. Even if you don't buy a property in the market you analyze now it still will be great practice and experience. Below are some of the common things I analyze when researching a market to get you started. Best of luck!!
| Job Industry #1 |
| Job Industry #2 |
| Job Industry #3 |
| Population Growth % |
| Average Home Value |
| Average Rent |
| Price to Rent Ratio |
| Tax Assessment % |
| Utilities (anything unique) |
| Seasonal Maintenance (snowplowing) |
| Specialty Insurance |
| Average age of renters |
| Average income of renters |
| Average education level |
| % of homeowners vs % of renters |
| Crime Statistics |
| School District Rating |
| Average age of properties |
| average vacancy rate in the area for other landlords |
| Multiple exit strategies? (long term rental? short term rental? flip?) |