Before you buy your first rental property, you’ll need to choose a real estate market. If you’re like many Americans, your own backyard may not offer what you want out of an investing area. So, where do you go to find cash flow or appreciation? Today, we’re walking you through choosing a real estate investing market, the metrics to look for, signs of growth and decline, and which markets offer investors the biggest benefits.
How hard is it to do market research? If you have access to the internet, you can research a market in a matter of minutes. But knowing WHAT to research is the most crucial part. Dave Meyer, VP of Market Intelligence at BiggerPockets and host of the “On the Market” podcast, shares his steps to market analysis and how he analyzes each market to ensure it’ll make him the most money in the long run.
We’ll touch on population and migration, supply and demand, vacancy rates, rent-to-price ratios, landlord vs. tenant-friendly states, and the telltale signs that a market will have high or low cash flow. So before you buy your first or next rental property, make sure you do THIS research!
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Grab the “Picking a Market Worksheet”:
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Catch Dave and Henry on the “On the Market” Podcast:
https://link.chtbl.com/OTM
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Books Mentioned in Today’s Show:
Long-Distance Real Estate Investing: https://store.biggerpockets.com/products/long-distance-real-estate-investing?utm_source=owned_media
Start with Strategy: https://store.biggerpockets.com/products/start-with-strategy?utm_source=youtube&utm_medium=description&utm_campaign=none
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Connect with Other Investors in the BiggerPockets Forums:
https://www.biggerpockets.com/forums?utm_source=owned_media
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Tools Mentioned in Today’s Show:
Census Reporter: https://censusreporter.org/
ChatGPT: https://chat.openai.com/
FRED: https://fred.stlouisfed.org/
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Connect with Dave, David, and Henry on BiggerPockets:
Dave: https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none
David: https://www.biggerpockets.com/users/davidgreene24?utm_source=youtube&utm_medium=description&utm_campaign=none
Henry: https://www.biggerpockets.com/users/henryw22?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow Dave, David, and BiggerPockets on Instagram:
Dave Meyer: @thedatadeli or https://www.instagram.com/thedatadeli/
David Greene: @davidgreene24 or https://www.instagram.com/davidgreene24/
Henry: @thehenrywashington or https://www.instagram.com/thehenrywashington/
BiggerPockets: @biggerpockets or https://www.instagram.com/biggerpockets/
Show notes at: https://link.chtbl.com/BPRE
00:00 Intro
04:14 How to Find Housing Market Data
08:53 Population, Supply, and Demand
13:36 Vacancy Rates and Inventory
16:54 Calculating Rent-to-Price (RTP)
22:27 Where to Find Cash Flow vs. Appreciation
32:27 How to Start Researching NOW
33:34 Tenant vs. Landlord-Friendly States
