Posted over 6 years ago

Market Analysis - Overwhelmed? Simplify!

**Sh*t to Sugar**

As this is my first post, a brief introduction is needed. I chose turning sh*t to sugar as the title of the blog because that is both my means and my end. My plan is to use the BRRRR method (turning fixer uppers into assets, or sh*it to sugar) as a path to financial freedom. What's my why? Among other things, I am a school social worker under a mountain of student loans trying to help my parents who will soon retire without a house of their own (lost in 2008). REI will by my way of turning that sh*t of a situation into sugar.

Normal 1554078650 Where To Start

Market Analysis

As I get started on this journey, I would like to help others in any way I can. Since market analysis is essential but sometimes overwhelming, here is what I am doing to simplify the process.

Step 1 -Job/Population Growth

I start by looking at which cities have the highest job growth or population growth? Job growth usually brings populations growth, which increases demand, which can make for a good housing market. A simple Google search can get you started.

Step 2 - City Market Analysis Report

After reading a few articles and finding an city of interest, I head to that city's official website in search of a market analysis report. Such reports contain information on the diversity of the economy, top employers, population changes, development projects, median house prices, and rental market. HUD publishes with some of the information mentioned above for certain cities that I have found extremely useful.

Step 3 - Important Sites of the City

Digging through the city's website and market analysis reports usually let's me know who the top employers are and what areas are the focus of current or future development. Being a visual learner, I then head to Google Maps and star these important sites of the city. This way I know where they are in relation to listings.

Step 4 – Check Listings

Where are the listings in the city? I run a search on realtor.com (and use their crime map overlay). I look to see if prices are within my range. I also check if the listings are close to top employers, downtown, universities, or areas of redevelopment. I reference my Google Maps with the sites I saved from Step 3.

Step 5 – Rental Market

What is the city’s rental market like? Here I use a variety of resources including Rentometer, Craigslist, and Bestplaces.net. This gives me a good snapshot of the rental market in areas of interest. If I have found some good listings in good areas and the rental market is strong, I move on the making connections.

Step 6 – On the Ground Connections

Once I start identifying some areas of interest, I look to connect to anyone who lives in the area. I try to find out about specific neighborhoods of interest. When I reach out to someone, I let them know I have been doing extensive research, this way they know I am serious and not expecting them to do the work for me.

You can reach out to a property manager, agent, BP member, friend, or all of the above.
Use the Bigger Pocket forums! Do a keyword search and go down the rabbit hole.

Next Steps

If the city still looks good after all of the above steps, the next step is starting to form a team and then visiting. This is where I am currently and is a topic for another blog post.

Let me know your thoughts? Are you doing something different that works? I would love to know!