Analyzing data for rental property investment

[Mendy Fried]

Hi,

I've been scouting a market to invest OOS, I have some experience with investing closer to my local market where I had a team in place PM, contractor ect. I'm interested in a market where there's a mixture of cash flow and a sizeable amount of appreciation over time (not 1, 2 pr 3% over 20 years etc).

I've been doing my research on population growth, home prices (im interestingin home prices around 150k for SFH), rental pricing, employment and employers in areas etc. I've come across an area in the midwest (avg home price 80-90k) where there's a slight population decrease, strong job market with relative good rental to purchase price ratio.

The question I have is, that there is a sizable amount of homes for sale but not many rentals available. Does that mean that people living In that specific town are more renters than home buyers and therefore would explain the situation or is it that there are to many homes avail versus the area is not as popular as I think it is?

Might be a stupid question but would love to get ur opinion.

Thank you!

Mendy