Choosing where to invest out-of-state (OOS)

[Voltaire G.]

As a beginner investor looking to use BRRRR strategy , how do you search or choose where to invest/purchase out-of-state (OOS) properties?

[Brenden Mitchum]

Hey @Voltaire G., welcome to the BP community!

Regardless of strategy, there are several factors most investors look at when researching markets. Here are the 6 big ones that I see again and again: 

1. Population over 100k

2. .5% or more year-over-year (YOY) population growth

3. 1% or more YOY median household income

4. 2% or more YOY job growth

5. 2.5% or more YOY median home value

6. Decreasing crime index

Essentially, it does not really matter what your strategy is if the market is depressed or in a down cycle. They will all be fairly risky in these markets. So you want somewhere with strong growth and job diversity that will be able to handle the coming national downturn. This is especially true for BRRRR deals because they hinge on that refinance.

I actually recently moved from Honolulu to Atlanta to start investing here because I really like and believe in this market. I even recently heard somewhere that job growth actually outpaced population growth in 2019, which is pretty sweet.

Anyways, hope that helped a bit! If you have any other questions or just wanna chat, please feel free to message me anytime!