Researching A New Market

[Wesley Wells]

Hi BP community,

First I would like to admit that my idea of picking a market for apartment investing was all over the place and I didn't really have a criteria defined to select a market. After listening to some real estate podcast,  I am in the process of reviewing market data to pinpoint which markets are the best for investing based on supply and demand.

I was wondering what market data should be analyzed when reviewing new market? Thanks in advance for the feedback!!!!

[Robbie Reutzel]

@Wesley Wells there are many factors you should take into account when researching a new market for buy and hold. A few of them are employment rate, employer diversification, city planning (i.e. revitalization zones), natural barriers to expansion. You should also talk to commercial brokers and mortgage brokers to find out what the going cap rate is in the area you want to invest. 

There have been many books written on the subject.  A few that I like are "The Complete Guide to Buying and Selling Apartment Buildings" by Steve Berges, "Multi-Family Millions" by Dave Lindahl, and "What Every Real Estate Investor Needs to Know About Cash Flow" by Frank Gallinelli. 

I would read all three.  You can probably find and buy all of them for around $50 and they will give you all the knowledge you need to get started. Including how to pick a market and then find deals. 

Keep reading BP as well and join the conversation.