Residential Real Estate Location Metrics Evaluation Spreadsheet

Investor · CA · Member since 2023 · 2 posts · 3 votes

Does anyone have or know of a location to find a spreadsheet with the metrics I should use in evaluations U.S. locations to invest in? Or what metrics should I put on my spreadsheet to help evaluate whether or not a city or state is a good location to invest in? Thank you.

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Jonathan GreeneBusiness Member

Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes

What you are asking is something that will assure that you stay in analysis paralysis crunching numbers that you don't even know to be true, current, or likely to continue. The first thing you should do if you want to invest out-of-state is to see where you might have a competitive advantage.

Make a list of every place you ever lived and where all of your closest family and friends (the ones you trust) live and then compare metrics on those towns. You either have personal knowledge or boots on the ground so you won't be throwing a dart at a place you know nothing about outside of a spreadsheet.

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Bradley BuxtonBusiness Member
Real Estate Agent · NV · Member since 2023 · 1k+ posts · 720 votes
2y
@Kim Harlow-Williams
There will be other factors to consider where to invest besides pure math calculations.
There is no spreadsheet that will predict a perfect investment. Things to consider are self management, travel distance, property taxes, insurance, resource availability. For example I work with CA investors that buy in Reno, Nevada because it's close to CA, low property taxes, and job growth. It's a more expensive market than the Midwest and the short term cash flow is lower and that is the trade off for being a few hours away in a landlord friendly state. Weigh the non-tangibles when looking for a market with other dimensions of your life.
Once you narrow the market down then there are also development factors, demographics, jobs, city investments and improvements. Those are tough to put into a spreadsheet.
Finally once you have made the macro considerations then you can use the spreadsheets to analyze deals and scenarios which there are multiple templates online, or find an agent that will do that for you. There are also calculators that you can use to analyze individual properties.
It's a business so the rents will be the main income and subtract expenses including savings.
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Joe VilleneuvePro Member
Plymouth, MI · Member since 2013 · 13k+ posts · 19k+ votes
2y
Quote from @Kim Harlow-Williams:

Does anyone have or know of a location to find a spreadsheet with the metrics I should use in evaluations U.S. locations to invest in? Or what metrics should I put on my spreadsheet to help evaluate whether or not a city or state is a good location to invest in? Thank you.
There are a number of factors involved here. All of them financial, with dollar signs in front. None with % signs behind. You're talking about Market Analysis. This is 10000 times more important than Property Analysis. When you buy a property, you are not just buying a property, you're buying a piece of a market.
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Tim Ryan
Investor / Mentor / Contractor · Arcadia, CA Buying Out of State · Member since 2015 · 655 posts · 622 votes
2y
Hi Kim. For us in California the main metric is not "low cost". Everything east of us is low cost. The key is "path of progress" and "growth markets". This is found in areas that are gaining in net job creation. Where is a large manufacturer moving to? This has been happening for decades with Cali companies relocating to Texas. Now some of those markets are too expensive or too saturated. The key is to find one market in its early stage of growth.
I'm actually having an investment meetup next Tuesday about this exact subject! You should come. It's in the Pasadena area.
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Jonathan GreeneBusiness Member
Real Estate Consultant · Madison, NJ · Member since 2016 · 6k+ posts · 7k+ votes
2y
What you are asking is something that will assure that you stay in analysis paralysis crunching numbers that you don't even know to be true, current, or likely to continue. The first thing you should do if you want to invest out-of-state is to see where you might have a competitive advantage.
Make a list of every place you ever lived and where all of your closest family and friends (the ones you trust) live and then compare metrics on those towns. You either have personal knowledge or boots on the ground so you won't be throwing a dart at a place you know nothing about outside of a spreadsheet.
[email protected]Podcast Guest on Show BiggerPockets Daily 667: 5 Amazing Benefits Multifamily Investments Offer (That Single Family Homes Don’t) by Gino Barbaro
Zen and the Art of Real Estate Investing59 Reviews
Website View Page
1 Reply
Mike TerryPro Member
Investor · Fort Myers, FL · Member since 2015 · 293 posts · 278 votes
2y
Quote from @Jonathan Greene:

What you are asking is something that will assure that you stay in analysis paralysis crunching numbers that you don't even know to be true, current, or likely to continue. The first thing you should do if you want to invest out-of-state is to see where you might have a competitive advantage.
Make a list of every place you ever lived and where all of your closest family and friends (the ones you trust) live and then compare metrics on those towns. You either have personal knowledge or boots on the ground so you won't be throwing a dart at a place you know nothing about outside of a spreadsheet.

@Jonathan Greene this is excellent advice. Find a below market deal in a market where you can afford a property, while maintaining a capital cushion. You will learn a ton and I firmly believe that doing is the best teacher.
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Scott Mac
Austin, TX · Member since 2019 · 5k+ posts · 5k+ votes
2y
I use a map. A paper map. Like the maps used in World War II. I make notes on the map.

I use my eyes. I look at the vehicles, are they 20 year old economy cars on their last legs, or are they newer vehicles that people are making payments on at a legitimate car dealership vs a buy and pay here joint.

I use my eyes. I sit in the parking lot of grocery stores and fast foods and look at the clientele. Do they look like Class B or Class C on Class D patrons. Are they scruffy and poor, or do they look like W2 employees.

I use my Feelings. Does the area have individuals that seem to be scary, or do I see a lot of gang spray painting around.

I go into the Walmart. Who is shopping at the Walmart? What kind of cars are the parking lot of the Walmart? Do these patrons seem like the type of renters I would want to deal with.

None of this could go on a spreadsheet- But I do boots on the ground that way.

If you just make a choice based on something on a spreadsheet there could be a lot of lions that come up and bite you.

Know your customer, understand what they want, understand how they want to live.

Good Luck!

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