Out of State Base Line Analysis

[Hank Walter]

I'm working on a broad analysis of 25 markets to ultimately select a top 3 to do a deep dive market analysis on. Below is an explanation of three things in the chart and two questions that I believe could improve my analysis and figure out a top 3 faster. I chose these markets because they have a lower barrier to entry and in my opinion more value add potential compared to my home market of Minneapolis, MN. I'm looking to purchase either a SFH or Duplex with some value add potential and to hold for 5-10 years. After I target a top 3, the plan is to read through each city's CAFR for details about their economic status currently and future projections, financials, and statistics. Once I feel comfortable with the cities, I plan to establish a working relationship with contractors, wholesalers, and property management in the area. Finally select roughly 10 properties (at least) to visit with a realtor and contractor then submit bids for the property.

- Top 5 for each category are highlighted green

- Worst 3 for each category are highlighted red

- % +/-Average is the percentage difference between the the city median income and the U.S. National average

Does anyone have any advice on additional analysis sections?

Has anyone had consistent and long term (5 - 10) benefits from a certain area or an area to completely avoid? 

DM if you would like the excel file. 

[Daniel Kurkowski]

Buy a property in Minneapolis. You don't have enough scale to make investing out of state worth your time and you will have a hard time building the proper relationships. Spend that same amount of time building relationships here to find a deal that is better than average.