Market Research Fundamentals

[Account Closed]

Hello BP!

What are some key indicators that you look for when deciding on a city to invest in?
These metrics can be things such as positive population growth, low crime rate, education/school proximity, etc.
I appreciate any input that you may provide.

Thanks!

[Brian Pownall]

@Account Closed some of my thoughts below 👇

- Population: like to see population over 200,000 or over 1000,000 within ~20 miles. Should support enough tenants and deal flow.

- Population growth: look for over 1% a year, easy to use Census data to compare to other MSAs

- Median household income: 3x average rents, growing trend over time. Generally try to look at areas over $40k.

- Jobs: diversified jobs (not just military for example) and growing job growth over last 3-5 years

- Crime: lower crime rate than average city, or a downward trend

- landlord and business friendly: avoiding onerous rent control laws

- Positive supply/demand trends: positive absorption of apartments, review pending permits vs. existing supply, average single family home price vs. average multi rents

- Quality school districts - Niche.com or GreatSchools