Best ways to Analyze a Market Potential

[Aaron A Bitto]

Good Morning BP Community... Looking for some tips on Analyzing the potential of new Markets primarily for Buy and Hold Rental Investments... Do you use Local city, county and state websites and are there a few National websites?? When Analyzing what would be your top few “Key Indicators” that you Focus on in the Data Trends??

[Joe Villeneuve]

Focus on finding Micro-markets, which would be defined as specific "small" (contained) geographic areas within cities and or zipcodes that have the same description (mainly the same square footage).  Then, use this criteria:

1 - Cost to buy/rehab (entrance)

2 - Cost of expenses (taxes, insurance, mortgage...if any..., etc...)

3 - Minimum Cash flow requirement (exit)

When you find properties of the "same description", that cash flow above the minimum, groped in the same tight geographic area...you have your micro market.

Get a camper, park it in that area, and invest.