Data-Driven Investment in Single-Family Homes

2 Replies

I'm developing a software-as-a-service offering for real estate investors to find great locations -- down to the block level -- to invest in single family rentals. It is especially aimed at people looking for better yields further away from home. We take all kinds of location information, mix it together, and give you 1) a detailed mapping of risk & return 2) an early warning on locations that make sense for you.

Some questions for investors who have several SFRs or more:

1. What is the BIGGEST headache you face in trying to figure out "where" to invest?

2. Without giving away your secrets, do you do any sort of analysis to identify locations? Or focus just on whether each deal "works"? Do you want to be able to do better/faster/cleaner analysis?

3. What solutions have you tried and were they insufficient?

4. What professionals do you turn to, besides your agent, to get investment ideas. Your property manager? REI groups?

Feel free to DM me and we can arrange a deeper discussion. I'll give you a 25 dollar Amazon gift card for a completed interview!

Where are you going to be pulling your data from(I assume a combination of places)?  The problem you will run into is that all the data online is either old or crap or both.  For example, census data can be very old and inaccurate.  Same thing with Zillow.  I like the idea, but it is only as good as the data and there isn't any good data, especially at a block by block level.

I hope you are able to prove me wrong.

Fortunately, there's good data out there, but it's not being made easily accessible. At least not without a lot of expense and time-consuming jumping around between sites. We solve the data problem by working with the industry's best data vendors that have applied a lot of post-processing and enrichment to the original government sources, or have collected their own proprietary data.

Not all of those vendors are equal in terms of accuracy, and we learned this the hard way through experience -- I come from the commercial real estate research world, and my co-founder from the retail site selection & revenue forecasting world. We aim to bring institutional-grade research data to the single family home investor. We add to this by considering "point" data nearby that are related to supply, demand, performance, and risk. These hyper-local measurements are what start to tease out bigger block-by-block differences (and changes over time), which are often significant.