How to Know which Local Market is Best

[Tim C.]

Hi BP,

I am in the first stage of investing which is choosing a location to invest in. I am looking at cities within an hour drive of my home in Oxford, OH.I'll be looking for lower priced single family homes that need some TLC.

A lot of the beginner books talk about local markets but they're not very specific on actionable steps in the research department. I'd like to know what methods you use to determine whether or not an area is worth investing in.

As always thank you for your insight!

Tim

[Paul Timmins]

@Tim C. 

To find out about a local market go to IREM.org search for ARM certified property managers. Call 5 ask them what parts of the city they like/dislike and why. Ask them what they see expenses running per category per unit. What do they see them selling for per unit, what is the market occupancy rate. What are the market rents? Ask them if they know anything coming up for sale. Great way to pick up some good info and possibly a deal.

Good luck

Paul