Suggestions to help learn the market

[Troy Egar]

Hey everyone,

As someone new to Houston, it can sometimes be difficult to understand all of the different neighborhoods/areas. It's a big city as I'm sure you all know! I feel a little overwhelmed as I read through listings online and attempt to analyze some deals.

Does anyone have any advice on learning a new market, specifically for new investors in general (i.e. areas of high growth potential, areas to avoid due to crime, etc, and other tips)? I'm willing to do the research myself, of course, but any pointers or suggestions on where to look would be very appreciated. I hope to learn as much as possible before jumping in too fast. Thanks!

[Art Perkitny]

@Troy Egar

One way of beginning to gain an understanding of your market it by looking at the relevant data.

Data sources such as the American Community Survey, also known as the annual Census, can help you judge a location by considering key market indicators, which I list below.

Some of the metrics that I find valuable to understand are:

- Population Total

- Population Age

- Home Values

- Household Incomes

- Rental Vacancy Rate

- Homeowner Vacancy Rate

- Poverty Rate

- Educational Attainment Rate (High School/GED & Bachelors)

- Number of Housing Unit

- Rent to Income Ratio

- Rent to Price Ratio

- Population on SNAPS (supplemental nutrition assistance program) percentage

- Property Tax Rate

- Median Age of Buildings

- Number of Structures by Units (SFR, Duplex, Triplex, Quadplex, etc...)

- Median Rents by Number of Bedrooms

- Unemployment Rate

- Employment Sectors Percentages

- Number of Building Permits Issued

- Foreclosure Rate

- School Ratings

- Crime Statistics

Also take into consideration the direction in which each of these market indicators are trending. This will better help you get an understanding of not just where market is today, but also where it may be heading.

Let me know if you have any other questions, hope this helps!