10 Factors to Consider When Determining What Market to Invest In

[Justin Goodin]

Once you decide to invest outside your local area, the possibilities are limitless. This can be exhilarating and overwhelming at the same time.

A tidal wave of thoughts may come flooding in immediately. Should you consider a bustling city or a metro area? You may reminisce about a vacation you enjoyed and the gorgeous buildings you saw there.

You could dive down every possible rabbit hole, cross-referencing “best real estate market” lists, trying to make sense of current population trends, and even looking up news local to areas you’d be interested in. Honestly, this won’t really help you draw any conclusions, plus you’ll waste a ton of time and energy.

Instead, begin by assessing your personal investing goals. This has helped me in my own experience. Maybe you want to invest in a growing market that also provides decent cash flow. Using that basic framework, this research checklist will help narrow things down:

1. Job Growth
2. Population Growth
3. Job Diversity
4. Landlord/Tenant Laws
5. Taxes
6. Geographical Features
7. Cost of Living
8. Local News
9. Local Government
10. Whether You Have an Unfair Advantage

You’ll focus on finding a strong sponsor first. Once they let you know about potential deals, you can use these 10 factors, in combination with your personal criteria and goals, to conduct your own thorough research while avoiding overwhelm.