Out of State Metrics

2 Replies

Hey BP,

I am currently investing where I live so I know the market well and do not have to research metrics I otherwise would if I did not know the market very well.  My question is where do some of you guys look for those indicators as to choosing a market to invest.  I am not currently interested in investing out of state, I would like to continue focus on and do more deals in my  current market.  But it would be nice just to see what other opportunities are out there in the event I do decide one day to expand to out of state investing.

Any input is appreciated! thanks in advance 

William, 

It is a great idea to start building your knowledge of the out of state investing concept early. I am a property manager and agent here in Rock County, Wisconsin. I work primarily in the Janesville and Beloit market with 95% of our clients being out of state investors. I have become pretty well versed with both my local market, and I has become so apparent what is drawing OOSI to Wisconsin. First of all, the purchase prices. Here in this market, an investor can purchase a cash-flowing duplex for under 150k and they can own a SFR for under 120k for a lot of their purchase. So the barrier for entry is significantly lower than many other markets so they can purchase more cash flowing assets in a shorter period of time. We also are showing some very strong business development. Companies like Amazon, Dollar General and ABC Supply Co. have drawn so much private money into the market, that entire city infrastructures are changing to support these large businesses. Also, Rock County is running a 1% vacancy rate over the last 2 years. I would love to share some more info on the market and pick your brain about your OOSI goals if you have any time shoot me a PM!

@Calvin Ozanick Thank you for your response and if/when I begin to look building an out of state rental portfolio I will check into Rock County, Wisconsin.  But my question is where to look to find key indicators that would bring investors to a certain area.  Such as population growth, jobs growth, etc. 

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