Choosing Places to Invest -- with Software

Choosing Places to Invest -- with Software

Rental Property Investor · Dallas, TX · Member since 2016 · 15 posts · 13 votes

I am considering developing a web-based mapping platform that will allow single family home investors -- and their service providers/advisors -- to quickly determine suitable locations in the US to focus their investment efforts (down to the block group or subdivision).

I wanted to get some quick feedback on whether you would use such a tool or think that someone would.

My thinking is the target audience is people with no geographic restriction and are open to anything -- the ultimate out-of-state-investor -- who wants to find areas worth focusing on. Of course, there are ways to make money in any market, but I think we're talking about the passive buy-and-hold investor.

The system would take demographic, economic, and sales/rent data to allow you to start from the whole U.S. and then filter down -- to very specific small areas -- that meet the requirements for your investment objective and merit a closer look. It would be done through a weighted scoring system, with weightings and variables pre-configured. And brilliantly visually displayed on a mapping platform.

For example, you are a buy and hold investor and you want an (estimated) average net yield above a certain level, with the lowest possible crime, highest possible school rating, lowest possible average holding costs, reasonable liquidity (transaction volume), and in a metro that hasn't already doubled since the last market trough (i.e. not that hot). The result is a set of locations worth a closer look.

That is something really hard to identify by going and looking at listings with today's listing-specific tools. My goal is to make the process a lot faster.

Is this something that might be useful?

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  • Rental Property Investor · TX · Member since 2019 · 303 posts · 364 votes
    7y

    @Steven McCord

    I don't buy SFHs, so I wouldn't use it. 

    And even if I were to use it, once I found the "area" that I liked, I'd want to see the inventory of homes in those areas.

    Most investors that buy and sell SFH usually work in their own back yards. (i.e. they know their market better than your website will.)

    It's a good start, but it would be tough to turn that idea into a profitable business.

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