Finding a City or Market to Invest In

8 Replies

How did you find the market you invest in? I know the characteristics to look for like population growth, low unemployment rate, and job growth but how do I find the city to invest in?

@Eric Stugart Factors like overall property cost, down payment, quality tenant should be characteristics to look into as well. The most determining characteristic will be money -- how much do you have? How much do you want to use for the down payment? How much do you have for repairs? etc... It's helpful to pick 3 locations and see how many of your criteria boxes are checked in each of those locations. Another suggestion is to house hack. Have you considered that? What market are you in?

Hi @Eric Stugart , as far as where to find data on demographic trends, FRED has a lot of good data if you don't mind the bad UX/UI.  

As far as where to invest, either start where it is best to invest (landlord friendly states with your preferred balance of cashflow, appreciation, and other factors) OR where you have the strongest team.  Your team can make you or break you in real estate investing and you can either use a team you are already connected to and build some great investments, or you can find where it is best to invest and build a team there!  

There're many ways to skin a cat, as they say, and it's really up to you as to which way to play.

Originally posted by @Eric Stugart :

How did you find the market you invest in? I know the characteristics to look for like population growth, low unemployment rate, and job growth but how do I find the city to invest in?

 You're not living there.  You're an investor.  You look for a different set of criteria...all of which hare numbers with $$$$ in front (and NO "-").

Also, don't look for cities, look for micro-markets that establish potential profit and/or cash flow for certain size properties.   Buy those.

Originally posted by @Eric Stugart :

@Joe Villeneuve Thank you Joe! I heard it’s a good idea to invest where there are good schools would you say that’s true? How did you find your market?

 What if the buyers/tenants in that specific area are mostly single or senior?

I find my markets by following the dollar$ coming my way that I can keep.

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