Tips & Tricks To Researching An Unknown Market Online

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Tips & Tricks To Researching An Unknown Market Online

Lucas Bernard
New to Real Estate · Boston, MA · Member since 2020 · 30 posts · 20 votes

Hey BP community! I've been trying to learn more about a specific market (Tampa), and feel like at times I am going in circles. Taking notes on each neighborhood + suburb gets tedious. I still don't have as pointed questions to ask agents as I would like. What are some efficient tips or tricks (or websites other than BP, MLS, & Propstream) you know of that helps an investor familiarize themselves with an area? Thank you!

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Joshua JanusBusiness Member
Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
4y
Quote from @Lucas Bernard:

Hey BP community! I've been trying to learn more about a specific market (Tampa), and feel like at times I am going in circles. Taking notes on each neighborhood + suburb gets tedious. I still don't have as pointed questions to ask agents as I would like. What are some efficient tips or tricks (or websites other than BP, MLS, & Propstream) you know of that helps an investor familiarize themselves with an area? Thank you!

When researching a market, it is important to pay attention to the factors you highlighted above as well as what brings people to the city and what will continue to do so. If the price is relatively low/sqft and the city has a growing population and job market, the demand for homes will increase which leads to home appreciation. Also see how the specific market handles STR as that brings in a large section of rei investors and can drive prices up. Here is a quick analysis of my market. Paying attention to recent and upcoming capital investments by the city can also give you a good idea of where the money is flowing in the city and you can see if it is recovering or growing. Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs. https://www.dispatch.com/story... 


Here are a few more recent investments

https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

https://columbusunderground.com/kaufman-development-purchasing-franklintons-idea-foundry-sp1/

https://highlandcountypress.com/Content/In-The-News/Headlines/Article/Development-projects-will-support-1-4-billion-in-investments-in-Ohio-communities/2/73/77342

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  • Michael Zane
    Real Estate Consultant · Summit, NJ · Member since 2019 · 43 posts · 31 votes
    4y

    Hi @Lucas Bernard, I wouldn't worry too much about working up a list of questions beyond the basics, and I wouldn't spend tons of time on the websites you mentioned.  The trick with out of state investing is two-fold.  

    First you have to learn the market.  This is hard enough when it's your hometown, and even more difficult when you can't readily visit properties to see what your money buys you in different neighborhoods.  The best way to tackle this is to connect with an investor-friendly agent in the market you are interested in.  Talk to them, explain your goals, criteria, etc., and ask them to send a few listings. When you see one that looks viable, ask them to do a virtual walkthrough.  Investor-friendly agents are used to working this way.  They'll also be able to get you data on properties that have sold in the area recently so you can comp out any properties that interest you.  They'll be able to help you understand rents in different neighborhoods and where to look for the property types you're targeting.  Eventually you might even take a trip to meet your agent and tour several properties over the course of a few days.

    Second, you'll need to build out the rest of your team, preferably before you even make an offer.  David Greene wrote a book on long-distance investing which speaks to this in detail.  Basically, he recommends putting in the legwork upfront to build relationships with the supporting players you will need in order to be successful - local attorney, lender, contractor, property manager, etc.

    Long-distance investing isn't easy, but if you're committed to it, the best thing to do is to start talking to people in the market you are targeting.

    3Reply
  • Joshua JanusBusiness Member
    Realtor · Cleveland, OH · Member since 2021 · 1k+ posts · 1k+ votes
    4y
    Quote from @Lucas Bernard:

    Hey BP community! I've been trying to learn more about a specific market (Tampa), and feel like at times I am going in circles. Taking notes on each neighborhood + suburb gets tedious. I still don't have as pointed questions to ask agents as I would like. What are some efficient tips or tricks (or websites other than BP, MLS, & Propstream) you know of that helps an investor familiarize themselves with an area? Thank you!

    When researching a market, it is important to pay attention to the factors you highlighted above as well as what brings people to the city and what will continue to do so. If the price is relatively low/sqft and the city has a growing population and job market, the demand for homes will increase which leads to home appreciation. Also see how the specific market handles STR as that brings in a large section of rei investors and can drive prices up. Here is a quick analysis of my market. Paying attention to recent and upcoming capital investments by the city can also give you a good idea of where the money is flowing in the city and you can see if it is recovering or growing. Columbus, Ohio is a great market to invest in. The population has been growing here year over year over the last decade, it is home to The Ohio State University which has over 50,000 students that live here along with those that visit, and it also holds a diverse range of young professionals and traveling nurses to fill the demand of the multiple business corporations and hospitals stationed here. Tech companies are continuously moving here and establishing a footprint in Columbus as well. Intel is a great example, who is building the largest chip manufacturing plant in the US right here, and it will be a $20 billion dollar investment that brings a few new thousand jobs. https://www.dispatch.com/story... 


    Here are a few more recent investments

    https://www.10tv.com/article/money/business/hydrogen-power-company-hyperion-bringing-700-jobs-to-columbus/530-25907aab-5517-4661-a9f3-d2ed2d5be6b0

    https://columbusunderground.com/kaufman-development-purchasing-franklintons-idea-foundry-sp1/

    https://highlandcountypress.com/Content/In-The-News/Headlines/Article/Development-projects-will-support-1-4-billion-in-investments-in-Ohio-communities/2/73/77342

    [email protected]614-502-5316Podcast Guest on Show #1
    4Reply
  • Nathan GesnerBusiness Member
    Moderator
    Real Estate Broker · Cody, WY · Member since 2010 · 28k+ posts · 41k+ votes
    4y

    You should be looking for an 80% solution, not the perfect solution.

    Look at the quality of the schools and general demographics. What's the median income? Is population growing, stable, or declining? Is the government fair to investors? How well is the City maintained? What are the crime stats over the last 5-10 years and are they improving or getting worse?

    I would study a location for a couple hours. It shouldn't take long to get a feel for the health of the city.

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  • Remington LymanBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
    4y
    Quote from @Lucas Bernard:

    Hey BP community! I've been trying to learn more about a specific market (Tampa), and feel like at times I am going in circles. Taking notes on each neighborhood + suburb gets tedious. I still don't have as pointed questions to ask agents as I would like. What are some efficient tips or tricks (or websites other than BP, MLS, & Propstream) you know of that helps an investor familiarize themselves with an area? Thank you!


     I think the best thing to do is to jump into it. It is easy to get stuck in analysis paralysis.

    I bought my first property in Columbus, Ohio before I read any books or listened to any podcasts. It was a house hack so it was a little more forgiving.

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    4y

    @Lucas Bernard
    Find a market and jump in. I would say 2 key indicators to look for as out-of-state investors are job opportunities and population growth. 

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  • Steven Foster Wilson
    Rental Property Investor · Columbus, OH · Member since 2017 · 3k+ posts · 3k+ votes
    4y

    Columbus OH, Dallas TX, Charlotte NC. Pick a solid secondary market that offers both appreciation and cashflow.

    2Reply
  • Linda LabbePro Member
    Investor · North Bay, Ontario · Member since 2015 · 709 posts · 262 votes
    4y

    No matter how good or bad a market is if you are working remotely its all about the team you have on the ground  they can sink a great market or make a marginal one highly successful  find the right people to work with   and you are set. I live in Canada and invest in the states  more then willing to share what I have learnt with anyone who wants to chat

    2Reply
  • Nicholas L.Pro Member
    Flipper/Rehabber · Pittsburgh · Member since 2018 · 6k+ posts · 5k+ votes
    4y

    @Lucas Bernard can you fly there and spend a weekend looking at properties with an agent?

    0Reply
  • Lucas Bernard
    OP
    New to Real Estate · Boston, MA · Member since 2020 · 30 posts · 20 votes
    4y
    Quote from @Nicholas L.:

    @Lucas Bernard can you fly there and spend a weekend looking at properties with an agent?


     That's the plan! Just trying to time it right with my departure from California at the end of the year. Unfortunately with this market I don't think I have the luxury of working things around my schedule.

    0Reply
  • Lucas Bernard
    OP
    New to Real Estate · Boston, MA · Member since 2020 · 30 posts · 20 votes
    4y
    Quote from @Michael Zane:

    Hi @Lucas Bernard, I wouldn't worry too much about working up a list of questions beyond the basics, and I wouldn't spend tons of time on the websites you mentioned.  The trick with out of state investing is two-fold.  

    First you have to learn the market.  This is hard enough when it's your hometown, and even more difficult when you can't readily visit properties to see what your money buys you in different neighborhoods.  The best way to tackle this is to connect with an investor-friendly agent in the market you are interested in.  Talk to them, explain your goals, criteria, etc., and ask them to send a few listings. When you see one that looks viable, ask them to do a virtual walkthrough.  Investor-friendly agents are used to working this way.  They'll also be able to get you data on properties that have sold in the area recently so you can comp out any properties that interest you.  They'll be able to help you understand rents in different neighborhoods and where to look for the property types you're targeting.  Eventually you might even take a trip to meet your agent and tour several properties over the course of a few days.

    Second, you'll need to build out the rest of your team, preferably before you even make an offer.  David Greene wrote a book on long-distance investing which speaks to this in detail.  Basically, he recommends putting in the legwork upfront to build relationships with the supporting players you will need in order to be successful - local attorney, lender, contractor, property manager, etc.

    Long-distance investing isn't easy, but if you're committed to it, the best thing to do is to start talking to people in the market you are targeting.


     Appreciate the info Michael! Think I may be getting too caught up in analysis vs taking action.

    0Reply
  • Lucas Bernard
    OP
    New to Real Estate · Boston, MA · Member since 2020 · 30 posts · 20 votes
    4y
    Quote from @Remington Lyman:
    Quote from @Lucas Bernard:

    Hey BP community! I've been trying to learn more about a specific market (Tampa), and feel like at times I am going in circles. Taking notes on each neighborhood + suburb gets tedious. I still don't have as pointed questions to ask agents as I would like. What are some efficient tips or tricks (or websites other than BP, MLS, & Propstream) you know of that helps an investor familiarize themselves with an area? Thank you!


     I think the best thing to do is to jump into it. It is easy to get stuck in analysis paralysis.

    I bought my first property in Columbus, Ohio before I read any books or listened to any podcasts. It was a house hack so it was a little more forgiving.


     Love the energy Remington! With prices continuing to rise, I feel more compelled to do so with every day that passes...

    1Reply
  • Ali Boone
    Real Estate Coach · Venice Beach, CA · Member since 2012 · 6k+ posts · 3k+ votes
    4y
    My absolute go-to to get started researching an area is to talk to local agents and property managers. You don't necessarily need to know specific questions past telling them "I'm interested in investing in Tampa and I'm spinning in circles trying to figure out where. What are your recommendations?" Property managers will be able to answer pretty easily since they deal with rentals all day long (if you're interested in rentals), and with agents you can get general market trend information but you'll be better off finding an investor-friendly language who can dive deeper into the investing side.

    After I talk to folks on the ground, THEN I dive more into the websites and statistics and data and such... more as a way to back up what they say than as a way of telling me what I'm trying to find out. The problem with the websites is they mostly give you data. Data is great, but you need context to be able to interpret the data. Most of us don't have that, so the data doesn't end up helping a ton. For example, people love to focus on crime stats. Well I live in Venice Beach in Los Angeles and if you focus on the crime stats here, I shouldn't be alive (possibly due to decapitation). But I walk around late at night, no problems, and there are certain dynamics around here that data would never be able to tell anyone. The data says one thing, but the reality is another...even tho all those crimes actually happen.

    So, find some locals! Let them paint the picture for you, point you in certain directions to get you started, and then you can narrow down your research from there.
    0Reply
  • Eliott Elias
    Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
    4y

    Call agents in that area and have light hearted conversations with them. Genuinely express interest in them and have them explain the market to you. 

    0Reply
  • Anthony L Amos Jr
    Real Estate Agent · Columbus | Toledo · Member since 2019 · 607 posts · 768 votes
    4y

    I would call local property management companies, agents, and the local planning and development department to get an answer to some of your questions. Also a great website to get a lot of info about an area is

    https://www.neighborhoodscout....

     
    0Reply
  • Drew SygitBusiness Member
    Property Manager · Royal Oak, MI · Member since 2012 · 12k+ posts · 9k+ votes
    4y

    @Lucas Bernard

    You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider. You can use the outline and info sources for just about any city/neighborhood:)

    https://www.biggerpockets.com/...

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