What are your 10 Metrics For Finding A Multifamily Market?

[Rick Martin]

Please add anything to this list! For instance, we could get more granular and say “Uhaul Traffic.” I often come across investors who are afraid to invest outside of their own backyard. Think for a moment how limiting this is. Most primary and even secondary and tertiary markets in the US don’t cash flow. I get it; it is the world of the unknown, and it will take a lot of homework, but we have the data and technology to make it happen. We can now frame our investment around critical parameters that will increase our chances of succeeding. Here is a checklist:

1) Job Growth - Job growth is a leading indicator of population growth.

2) Population Growth - Finding an area with long-term upward population growth trends (not a temporary bump) is vital.

3) Job Diversity – Make sure that the pie chart is evenly divided.

4) Landlord/Tenant Laws – Pretty much the “Red States.”

5) Taxes – We all know how this can affect the bottom line. Check-in with the assessor.

6) Geographical Features – Think Mountains and Oceans, but let’s include human-made features like train tracks, airports, and smelly factories.

7) Cost of Living – Needs to be affordable to make the numbers work, and if provides a buffer for future growth.

8) Local News – What is the economic buzz that will fuel the path of progress.

9) Local Government – Strong leadership from the local government is attractive to corporations, which means that job growth will continue.

10) Whether You Have an Unfair Advantage – Did you live there? Go to college there? Have a cousin there?