How to Choose a Real Estate Investing Market

How to Choose a Real Estate Investing Market

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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Show notes at:

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

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