“Follow the Hipsters” and Other Early Market Indicators
Hi everyone,
A few weeks ago I attended a local investors meet up and one of the presenters said something interesting when asked about areas of the city that he thinks will produce strong rental property investments. He said to “follow the hipsters” because the areas they gravitate to tend to become strong markets.
I’ve thought about it more the last few days and it seems to be a fairly good indicator from what I can tell. At least in the Minneapolis area. Though I’m sure there are many exceptions. But it got me thinking:
What are some other good indicators/trends/things that you look for when analyzing an area for investment properties?
I suppose I’m more wondering about neighborhoods that could soon be transitioning from a C or D to an A or B area. Basically, early indications that an area will be profitable in the near future.
Cheers!
Andrew
Most Popular Reply
Andrew:
That is a stock market mentality. You need to think about real estate differently.
Find good cash-flowing properties at a discount. Profit is built-in, regardless of how the community performs. Buy one. If you like the direction the community is headed, hold long term. Otherwise, sell at a profit. You will outpace your friends that try to guess what is the next hot spot.
Don't speculate.