How do you get to know a market well?

Question

When investing in real estate, you're supposed to know your market, what all the nieghborhoods are like, where to invest and where not to invest, etc. How do you get to know a market like this without extensive research that can take months by literally finding out what all the neighborhoods are, exploring all of them, talking to people in all the neighborhoods, etc.? Is finding a good agent who knows the nuances of the market enough, or do you need more information before investing in a particular market? If you need more info, then what information do you need and how do you get that information?

Aaron K. · Answer

@Ben Feder Google street view is a huge help here, also if you mark them yes/ no through a place like Redfin you'll see patterns start to emerge, as I said before a firm budget also helps, because it doesn't let you stretch fantasies too far.

Aaron K. · Answer

You don't need to know every detail but you need a solid feel.  When you are looking casually you don't get this.  At least for me as soon as you start looking with real money and a real budget you learn pretty quickly, which areas have value which areas have problems.  This kinda works with just internet shopping but is greatly magnified if you are actually touring houses.

Dustin Mathenia · Answer

@Ben Feder

Ben Feder · Answer

Are you saying that months of research on a single market to determine whether it's a good place to invest or not isn't extensive because "extensive research" would take longer, or because it shouldn't take that many months to figure out the market?

Mike Dymski · Answer

Analyze 50 opportunities. Research that takes months is not extensive...that's what real estate investing is all about.

Ben Feder · Answer

@Aaron K.

Thank, I hope it will come to me while online shopping and going to open houses, etc. How do you get a feel for this just by internet shopping or even touring houses? When you drive around or shop online, either way you are only looking at specific houses, which may or may not be reflective of the neighborhood they are in. Also, you would need to know how these neighborhoods are layed out and which other neighborhoods are nearby, and what class of neighborhoods you are lookng at.

How do you get to know a market well?

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