Thinking of looking in other markets for some rental properties/BRRRRs. What (and where) are some metrics you look at to get to know another market & decide if the growth and pricing, etc are good to get into?
I know I can reach out and find a realtor and management company - but for me to know it’s somewhere I want to go.
Thanks in advance for the great feedback!
Cost to buy
Potential Cash Flow
First and foremost, I would define my investing goals. That is, what is my appetite for cash flow vs appreciation. Also, how risk averse/affine am I. These parameters will help decide what kind of yields you are searching for, which you can use to filter down your list of macro markets.
Then I would start by looking at the macro market's fundamentals, that is the population, job and income growth over time.
After that, I would look to see what the rents and home prices are and how those are trending as well.
I would do a similar analysis, but at the sub-market level for the metro area you are considering investing in.
Other metrics that I find valuable to understand are household income, poverty, unemployment, and educational attainment. Also, the trend for the aforementioned metrics is also very important.
Hope this helps!