Creating a REI plan (research)

[Hayden Reed]

Hi all,

I'm in the process of creating an investing plan/guideline that will help me visualize the property acquisition process and serve as a checklist to make sure I'm doing the right things in the right order. I'm currently working on the "research" section and wanted to ask for some suggestions. There are four sections: national trends, state trends, city/area trends, and neighborhood trends. I haven't included individual property research yet as it will be a much more comprehensive and detailed section. I've included some preliminary questions/topics, but I know I'm missing a lot of important information. Any suggestions as to what should be added would be much appreciated. Once again, I'm not getting into specific property characteristics or valuations just yet. Thanks!

National trends:

• At what point in the real estate cycle is the market currently? What are the economic outlooks and predictions for the next six months? Year? Five years?
• Should I be concerned about a bubble? Where was the bottom of the cycle? Where should I expect the top?
• Is there any legislation coming down the pipe that may affect the real estate market?

State trends:

• Does the state real estate cycle differ from the national market? If so, why? What is the economic outlook of the state?
• What state-level trends might have an effect on real estate prices? Is the state experiencing a change in immigration/emigration?
• Are there any legislation changes that may affect the real estate market? Might this require a change of strategy?
• How will property taxes affect my strategy?

City/area trends:

• How does the current zoning situation affect property prices? Are there planned changes to the zoning policy? Does this create an opportunity?
• How have the city’s population demographics changed over time? (race, ethnicity, median income, housing prices, rent levels) What changes are forecasted?
• Is there a sector of the market that is currently underserved? Can a need be filled? Where does the demand exceed the supply?
• What are other investors in the area doing? How can I tailor my strategy to pick up their slack? What are they doing wrong? What are they doing right?
• What areas of the city do I want to focus on? (property values, school districts, rent value, proximity to attractions)

Neighborhood trends:

• What is the demographic profile of the neighborhood? How is this profile likely to change in the near future? Distant future?
• Is the neighborhood moving up or down? Is a trend reversal likely to occur?
• Where is the neighborhood located in proximity to the necessities? (schools, work, stores, entertainment, etc.)
• What is the crime rate in the neighborhood? How has this changed over time? Would I feel secure living here?