I’m hoping to hear how others analyze markets, what tools you use, and sites you gather data from. I just read this blog post https://www.biggerpockets.com/renewsblog/places-invest-real-estate in which 6 markets were scored across a few categories:
- median rent: median value
- rent to income
- taxes to value
- insurance to value
- average appreciation
- population growth
A few people commented afterwards and highlight job diversity, % renters, and % vacancies are also important.
As far as sites people use, I’ve only heard of city data but I’m not very familiar with that site. I’ve tried using CL and apartments.com but that’s a lengthy process to investigate just the rental averages, let alone the rest.
How do those who analyze markets often do this quickly, or better said, efficiently. I’m not afraid of the effort, I just don’t want to take 100 hours for something that could take 10 with the right tools.
So my questions:
- Are there free spreadsheets people use to streamline this quickly? I’d love a tool that used equations to quickly add up analysis across multiple markets.
- What sites do you use to pull macro data from?
- Are there more than one that specialize in certain things?
- What other key measurements do other suggest?
A little about me: I’ve been researching REI for a few years now, bouncing between active member and lurker here on BP. Now that I’m a new dad, I’m reinvigorated to reach my financial goals of generating enough passive income from REI that I no longer need my 9-5. I’ve been in contract on a few investment properties but unfortunately was unable to close. Now that I own my family home in the Bay Area with some built in equity, I’m ready to leverage that equity and my savings to get into the game. My goals are to start with 2-4 unit properties that cash flow at least $200-$300 per door, in Class B neighborhoods primed for stability and or growth. I’d like to start in a market materially less expensive then CA where I can get into a 3-4 unit for $300 -$400K and have a solid management company manage it. I’m at the point where I’d like to find 1-3 markets I can actively work to help increase the odds of finding the right deals.
Hopefully some veterans out there can help me streamline my research skills. I’m very open to working with folks who need help doing this grunt work themselves if they’re willing to share their tools and process’. In fact, I’d love to do this!