Advice on choosing a housing market?

Question

I am eager to purchase my next real estate investment. I am currently living in my first investment property; all of the renovations/remodeling is done so I am reading to move out and start renting this. I am open to purchasing a multi family and house hacking for the next property. The problem is that I don’t know if I should purchase my next investment in Shreveport, LA or take the plunge and move to a city that is more expansive. What markers should I use to determine what city/area to invest in? The population of Shreveport has decreased in the last few years. Although I am very familiar with the area, I don’t know how to determine potential. Any advice?

Remington Lyman · Answer

@Sammie J. Bell I second what @Austin Steed is saying about Columbus, Ohio. There are many out-of-state investors parking money here. If you are willing to move here and self manage, you will have a leg up on all of them.

James Lemon · Answer

@Sammie J. Bell

I love this area as far as single family rentals and I would consider Multi Family if they became available. I may not be of

much assistance because Im not familiar with other areas. 2020 I plan to add at least 10 rentals and do 5 flips if that tells you how much I like it here.

Austin Steed · Answer

@Sammie J. Bell

We are seeing a lot of money coming from primary markets like LA and NY to our secondary market in Columbus OH.

Columbus is seeing great job and population growth.

Also we have one of the largest schools in the nation right in the heart of our city.

If you're ever interested about learning more about my market would love to hop on a phone call with you!

Congrats on the house hack too

Jonathan Greene · Answer

You can't forget about yourself when you decide where to live next. Is your work mobile? Where do you want to live next if outside of Shreveport. Too many investors are just looking for a hot market, but if everyone is already onto a market, the best deals are gone. You are in the second or third wave of deals, still making money, but why go there if it's already hot? I think if you have mobility your choice of where to go next should focus in on what will be good for you personally and also what the trajectory of that market is. Finding the next markets around the hotter big city is what I think will make more money and find better deals over the short- and long-term.

Nathan Roberts · Answer

The current population, population growth rate, median sell price, median property values, median household income, unemployment percentage, etc. You should take all of these metrics into perspective when analyzing a particular market that you may be interested in. Try to connect with local agents to get market demographics or statistics. Many agents will probably sell you on their area so they can get more business; be cautious of this. Always verify the information that is given to you to make sure it's correct so you're not getting the run-around. I hope this brief answer helps you out. Feel free to reach out for questions!

Advice on choosing a housing market?

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