Starting out - Selecting a Market

[Justin Delahoyde]

Hello,

I have had my membership for a while but this is my first post. So down to business. I live in WA in the shadow of Seattle and Vancouver B.C. Prices here are extremely high. I am trying to select an Out-of-state market to focus in. I am leaning towards the Midwest and the southeast. I am hoping to finance this through a 50k HELOC that i already have (or other creative ways). I am looking for a property that cashflows ( appreciation i am factoring at 0). I believe that a BRRRR would be best to try and reclaim some or all of the heloc $. My wife and I have great credit and am not worried about getting a loan. I am trying to find a way to select a market or ways to narrow down my choices. Selecting a Team in that remote location will be part of my process as well and i look forward to working with). Property type would most likely be SFR or small-Multifamily. If there is anything that might be prudent and i have omitted it please let me know.

Thanks - Justin

[Chris Coleman]

@Justin Delahoyde

When choosing real estate investing markets, it’s better to go with major metro cities, or secondary markets that have the following characteristics:

1. Growing population

2. Growing employment

3. Diversity of industries and multiple major employers

4. Low rental vacancies

5. Steadily rising rental rates

6. Landlord friendly

In simple terms, you want to invest in cities where people want to live, have good jobs, good job options, and are renting.

Check out reports like Marcus & Millichap and Yardi Matrix. These provide updated lists of the best performing markets for various types of real estate, with good info. Some of the more recent growing markets include Charlotte, NC, Phoenix, AZ, and Houston, TX.