How do YOU analyze Micro Markets?

3 Replies

Hey guys, I'm still kind of a noob scouting areas for my first deal. I've narrowed down the areas I'm searching in to 1 county and a few different cities within that county. I know people look at schools in the area and the rest of the neighborhood, but what other external criteria do you go off of to analyze the micro market? I'm currently looking at a deal in a quiet, older neighborhood. It's a safe area, good schools, right by a grocery store, and on a dead end street (no traffic). With my first investment, my goal is to house hack a duplex/triplex and renovate while living there before moving onto the next one. This particular deal has been on the market since January 2018, it started at 135k and now down to 124k current price. What should I be focusing on when analyzing a deal that doesn't directly relate to the house? Thanks for all the help!

I don't analyze schools, or shopping centers, or grocery stores, or anything else that doesn't involve numbers with $$$ in front.  Why?  Because the numbers with $$$ in front tell me whether or not, and how much, the buyers/tenants in a particular area care about the ...",..."schools, or shopping centers, or grocery stores.

Originally posted by @Matthew John :

Joe Villeneuve But doesn't that matter to future tenants/resale value?

Couldn't the numbers be good but if you can't resell it or rent it out, why bother?

 What better way to tell about future $$$ numbers than current $$$ numbers, and the history of those same $$$ numbers?  The rest of the non-$$$$ don't guarantee that those that will live in the houses, will have the same opinion of those non-$$$.  However, the $$$$ are what they are based on those same tenants/buyers opinions. 

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