Narrowing down target market

[Daniel Cody]

Hey friends - My partner and I have identified our 'mission statement' for the type of rental property we're looking to invest in. Cashflow focused, residential 2-4 unit property and are now narrowing down the target markets to focus on. We have it down to 3 or 4 states and aren't necessarily concerned about not being located in these states and I am wondering if there is a stream lined way to research and compare these markets. Currently putting together a sensitivity analysis of the different markets based on metrics like landlord laws, prop tax, insurance, economic growth, vacancy rates etc. Should we be focused on the states as a whole or be looking at cities individually? Curious how the gurus have identified target markets successfully and what the best process for research is. Thanks!

[Michael Gilman]

The most common way is to focus on the Metropolitan Statistical Area. There is a streamlined way to compare markets through third party providers such as Reonomy, Costar etc.. I personally use Offerd , which I believe is best in class but also most expensive of the options. 

Here are some free tools to aid the comparisons:

https://datausa.io/ > Quick Graph on the Market

http://www.city-data.com/ > Extensive Market Data on median income, population growth, crime, etc

https://www.niche.com/ > Combines Market analysis with Reviews

https://www.point2homes.com/ > Market Analysis with cool graphs

http://www.justicemap.org/ > Income Map at neighborhood level

https://www.deptofnumbers.com/ > Data on Employment, Rent, Income, GDP

https://www.census.gov/quickfacts/fact/table/US/PST045219 > Population and Demographic info

https://multifamily.cushwake.com/Research > Great Market reports on all Major Cities

https://www.berkadia.com/research-and-resources > Great Market reports on all Major Cities

https://alndata.com/market-reviews/ > Multifamily reports on all Major Cities

https://www.apartments.com/ > Rent Comps

https://www.rentometer.com/ (edited)