Do you analyze the area first… or the property first?
Lately I’ve noticed that experienced investors often approach deals completely differently. Some start with the property itself — numbers, rehab scope, ARV, cash flow. Others seem to focus much more on the surrounding area first: infrastructure projects, population movement, zoning changes, new retail, traffic expansion, future development, even where capital is quietly flowing over time. In some cases the property almost becomes secondary if they strongly believe in the direction of the area long term. Curious how most people here approach it. What usually matters more to you first when evaluating a deal — the property itself or the long-term trajectory of the surrounding market?
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Definitely market.. a great property in a weak or shrinking market usually has a ceiling, whereas an average property in a strong market can still outperform if the area is adding jobs, people, infrastructure, demand, etc. So might as well start by nailing down the market first, then finding deals