Determining Market demand

[Brian C.]

What is the best way to determine if there's demand for MF in a specific market? Should I be focusing on vacancy rates, net migration, job growth..? Are there rules of thumb or ratios people look for? Is there anyway to calculate the total market demand (potential renters) vs current supply (total units)? I'm looking to purchase a small MF near Denver CO, but need help determining if there's demand in the secondary market. Thanks!

[Matt Rauer]

@Brian C. Brian, I heard from someone about posting a craiglist add for rentals of the units in the building (before you put an offer down), and see how much traffic you get.  My friend did that and received over 60 responses in under 5 days. A cheap/easy way to see real demand.

Needless to say, he put an offer and has been very happy with his investment.