Hi everyone! This is my first post here so I´ll try to be quick.

I am starting my wholesaling carreer and first of all need to know what makes a market or neighborhood good for wholesaling. I live in Madrid, Spain and will invest here. I currently have 2 choices:

Market 1: mid-high income area, very strong appreciation and rental demand but low rent yields due to high prices. Very desirable neighborhood, old houses (1900s-1980s) and great to live and invest for long-term growth. Houses very well kept and "luxury"

- Average income is 50,000USD 

- Annual appreciation for 2024 was 20.5%

- Annual rental growth for 2024 was 11.9%

- The price per square feet is $765

- Average rental yield is 2.58%

- 0.5% of houses need full renovation and 2.87% of houses need "some" renovation.

- Unemployment rate is 5.24%

- Houses for sale are 1,065 (similar population than Market 2). 174 houses in need of renovation (listed online)

Market 2: middle income neighborhood, lots of new developments (by demolishing old houses and making new ones), it has twice as many inmigrants than market 1 and recently has been getting a lot of attention from investors. Old houses (1950s-1980s). Used to be a very bad area but it is now improving quickly.

- Average income is 35,000USD

- Annual appreciation for 2024 was 17%

- Annual rental growth for 2024 was 11.4%

- The price per square feet is $504

- Average rental yield is 4.47%

- 1.74% of houses need full renovation and 7.4% of houses need "some" renovation.

- Unemployment rate is 7.29%

- Houses for sale are 533 (similar population than Market 1). 105 houses in need of renovation (listed online)

Further considerations: 

Market 1 (Chamberi) has always been a prime area in Madrid, old buildings but with quality materials and high historical value. Market 2 (Tetuan) was built for low income families in the 50s-80s and has almost no historical value compared to Chamberi. There is also another Market, called Vallecas with slightly higher amount of distressed properties, half the house price as market 1 and 2, 15% annual appreciation and in a very low-income neighborhood. Should I consider it too?

I have been living in market 1 (Chamberi) for the past 6 months and market 2 (Tetúan) is 30 minutes walking from my house. Market 3 is on the other side of the city.

Market 1 has TWICE as many houses for sale than market 2, despite having the same population.

In Spain, income is much lower than in the US, the most expensive neighborhood has annual income of $57,000, so Market 1 (Chamberi) is on the very high side of the spectrum and Market 2 (Tetuan) in the middle.

In the city, vacancy rate is 6.3% and 82% of them are in good condition. There is a high home occupation problem and eviction laws are weak, this causes some homeowners to put their houses off the market.

In Spain the wholesaling market is very small and very few people know about it, there is however a recent upward trend in flippers, especially in Madrid.

In which of these markets should I invest and what variables should I use to decide the best area? Am I on the right track of analysis? 

I will greatly appreciate your responses and look forward to starting my investing carreer and become part of this amazing community!!!