Where to look to buy? First time...

Question

Hey guys and gals,

Iv been looking around and I’m trying to figure out where do you look to find property’s out of state do you have to look for an agent in the area your looking to buy an investment property in? I know about Zillow but my experience with that is they are quite a bit slower the the Actual MLS sites. I think I’m looking to buy out of the state I live in just because the cost of homes are extremely overpriced right now and I wanted to see what other states are going for see if it’s something I can afford. Any thoughts/ Ideas?

Steve Milford · Answer

@Jacob Powell I would say, study what you like about pockets of your current market that you like and then apply that criteria to other areas. I.e. The things I look for are job growth, cost of rent for the average wage earner, net migration into and out of an area, can I acquire at a cost that makes sense fiscally?

Art Perkitny · Answer

@Jacob Powell, absolutely!

I would start by looking at the macro market's fundamentals, that is the population, job and income growth over time.

After that, I would look to see what the rents and home prices are and how those are trending as well.

I would do a similar analysis, but at the sub-market level for the metro area you are considering investing in.

Hope this helps!

Jacob Powell · Answer

@Art Perkitny thank you for the chart. Do you by chance know how to look at the different markets?

Art Perkitny · Answer

@Jacob Powell, here's a resource that may help you begin to filter down the states you may be interested in investigating further.

The median home values, as reported by the most recent american community survey, are mapped and color coded. The darker the color the more expensive the state is. If you are looking for lower cost area, the midwest and south will offer you that.

That being said, most states have less expensive sub markets within them, so I wouldn't necessarily rule out looking closer to home.