What's the most important data investors need?

Question

I'm trying to put together a report for my clients that has only relevant concise data about our market.  I'm having trouble deciding what is the most important to include in a one page regular report for investors.  There is so much information available.  Thought I would as the BP community

What the most important data in a specific market for an investor to have on a regular basis when looking for investment properties?  What do you need to make a buying decision?

Capital, Expenses, rates, etc... What else?

Sam Yin · Answer

@Bradley Buxton

For me, it's median rents, median income, and population.

If rents are below median and the area income is strong with sizeable population/growth, it's a winning combo. There is room to raise rents and renter pool will be strong.

Rick Albert · Answer

I think creating a snapshot for investors is a great idea. Here are some things I would like to see:

1. Average Rents for different categories (studio, 1 bed, 2 bed, etc.) This would allow me to gauge my pricing.

2. Any new laws that I should be aware of. Then comment on any strategies needed.

3. Average home value trends (don't be a typical Realtor and only show good things, if there is downturn data, represent it). I would then comment on how an investor should pivot because of this.

4. Average DOM

5. Current interest rates

This isn't in any specific order, but might be good to see what's going on. Especially for those that invest part time.

Carlos Ptriawan · Answer

Redfin is the most accurate

Bradley Buxton · Answer

You can use census or USPS data to track migration.

Carlos Ptriawan · Answer

For me it's only about supply and demand ratio and the trend.Once this number is understood it's a money printing system.

Steve Vaughan · Answer

For me it's accurate shadow inventory data on new homes and apt builds.

I'd also like to see sale price data net of concessions.  Right now they just show the home sold for $400k.  Nevermind the $28k in buy downs, closing costs and repairs the seller paid.

The NAHB, bankrate, NAR, etc have been sugar-coating this data for a while.

For instance, a new DR Horton spec subdivision is reporting 7 for sale & 3 pending vs 27 additional obviously for sale when you drive through.

In my market, I see 240 new build apts about 90 days from completion in 1 complex alone.  I've been encouraging the renters to hold out for 1-2 month rent concessions in order to renew in the 400+ units already there.  Tables are about to turn.

Bradley Buxton · Answer

This is a great list!  The type of data would also be of interest depending on the investor goals a well.  I think job creation, new home starts, number of STR's in the area, new apartments coming online, etc... Some larger cities have average rent trends which are also good to know.

Nikiya Simpson · Answer

Thank you!

Nikiya Simpson · Answer

Do you get the area's sizable growth population from census data?

What's the most important data investors need?

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