Investing in a Location with MANY Listings--Red Flag??

[Claire Strom]

Hi there,

New to BP (or at least to posting). Currently own one duplex which we lived in for a while, but are now renting both units with a nice monthly profit. We are ready to move forward with more investments and have been heavily researching many areas nationwide. Here's the question: Is it a red flag if you find a city that has many multi-family listings that seem profitable, but has A LOT of listings city wide? Why is there so much real estate stock?

Thanks!