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Updated almost 12 years ago,
Factors/data in evaluating an income property. Share your approach!
Hey guys!
I think there is more to take into consideration when evaluating a potential income property than just cashflow, cash on cash return and cap rate. What factors/data you also take into consideration?
I pay attention to:
-employment growth in the area
-market trends
-population growth
-closeness to shopping mall/hospital/university/another big employer of the area
-average DOM (days on market before the property gets rented)
-unit mix in that area, demographics and psychographics
-appreciation of middle-class neighborhood
To do this analysis, I utilize real estate agent's knowledge of neighborhood, and the following websites:
-city-data.com
-neighborhoodscout.com
-realtor.com
-trulia.com
-mapquest.com
-US census bureau and bureau of labor statistics.
Please, share your parameters and websites you utilize... Or maybe you think the most important thing is cash flow, cash on cash return and cap rate?
Thank you!
Edita :)