How to pick a market to invest in

Question

Hi. I'm just getting started in real estate investing and I can't figure out how to pick a market where I can start looking for deals. How do you research a market and decide you want to invest there? Thanks in advance for your help.

Albert Bui · Answer

buying as investment or second home to "invest," requires 10-25% down payment so often times people start in their own market because owner occupied 1-4 unit programs are 0-5% down payment which is more feasible for most people unless you've been saving for a really long time and have capital to stack to go on a war rampage, in terms of investing.

Best of luck.

@Matthew Kwan@Carlos Valencia

Matthew Kwan · Answer

I would recommend house hacking while you live there and offset some of your mortgage expenses. However, the tradeoff the sacrifice of your personal lifestyle since you are living with roommates. Also, it depends what are you looking for. Do you value more on cash flow or higher appreciation? Also the job opportunities and population growth for potential states. The one good thing about both states that there are no income taxes so that's a plus. I would personally look towards TX as they have higher growth population than FL and more corporate hubs are slowing moving to TX meaning more job opportunities which will or has already created a high housing demand. If you decide to invest either TX or FL,
@Albert Bui @Carlos Valencia

Joseph Crunkilton · Answer

There's a million factors and you can spend months analyzing every detail. Personally I don't like to spend so much time over details. I found a few markets other investors were buying in and decided to set up shop there.

What are you looking for in an investment? I can recommend some markets.

Sam McCormack · Answer

@Simon Carroll

Hi Simon, you may be interested in the midwest! Not too sure of what you are looking for, but it could be a good place to start!

I am in Cincinnati if you are interested! Market mixed of cash flow and appreciation. Really depends on the area! Let me know Simon!

Eliott Elias · Answer

Draw a 30 min radium from where you are right now and pick a place. Don't invest where you can't easily be, especially as a newbie.

Jared Hottle · Answer

Depends on your goals. I think househacking in your local market will always be the best. Beyond that if you live in an expensive area, BRRRing or turn-key rentals in the Midwest will be a good option for cash flow. If you have interest in the midwest shoot me a message I am in Northeast Iowa and still helping buy cashflowing deals.

Sam McCormack · Answer

@Simon Carroll

Completely understandable for doing a 30 minutes radius, but if you are goin beyond that to invest, like a "60 minute radius", it doesn't matter. I would say anything after 30 minute circle may as well be OOS, don't confine yourself

Richard Loniewski · Answer

Always start in a market you know well, at least until you get a few properties under your belt

Simon Carroll · Answer

I'm looking primarily for cash flow. Obviously we'd all like a property that cash flows a lot and appreciates like crazy, but I'd rather have a property that cash flows a lot and appreciates a little vs. one that cash flows a little and appreciates a lot.

How to pick a market to invest in

How to pick a market to invest in

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