My name is Tomas Muller, and I am living in Charleston, WV. I've been reading and researching about real estate for a while. I am also an international student finishing up my Master's degree in the United States. I am curious about which elements you consider to start your market and how that ties into the strategy. I have read several of the BP books and seen how they break down the process, but I feel like there is an overwhelming amount of choices, and I can't narrow it down.
I was thinking about creating a spreadsheet with markets within my state and compare, but I am not really sure if I want to invest only in-state and I am not sure which metrics or factors to include. Would that vary with strategy?
If you could please provide your method or advice based on experience, I would appreciate it.
I'd say start local if possible, especially for your first deal. You'll learn more walking properties, talking to contractors, meeting lenders, and understanding neighborhoods firsthand than from afar
I also generally recommend house hacking as a first investment strategy. It allows you to use low down payment owner occupant financing, reduce your living expenses, and learn the ropes.
As far as market selection outside of locally I would look at markets within a few hour radius before going farther than that. Look at these pieces when analyzing a market
• Return, cashflow
• Job and population growth
• Landlord-friendly regulations
• Crime and neighborhood trends
• Vacancy rates
• Property taxes and insurance costs
• Future growth
If you can visit wherever you are choosing I would