How many markets to focus on at once?

Question

Austin Wolff · Answer

I specifically only focused on 2 markets (Indianapolis and Fayetteville, AR) before I found a deal using the BP "deal finder." I only did this because my criteria was so specific that it ruled out at least 95% of on-market properties in each city.

Travis Biziorek · Answer

Trying to “focus” on multiple markets at once is kinda an oxymoron—by definition, you’re not really focusing. The biggest gains come from going all-in on one market and really getting to know it inside and out. The deeper your market knowledge, the stronger your relationships with agents, contractors, and lenders, and the better your deals will get over time. Good luck trying to replicate that across multiple markets.

If a market is working for you and aligns with your goals, why change it up? There’s no real reason to jump into another market unless your goals shift and your current market doesn’t fit anymore—or if the market itself stops producing the results you need.

Mastering one market and squeezing every opportunity out of it is a much better play than spreading yourself too thin and getting half-baked results in multiple places.

Mya Toohey · Answer

I would focus on REALLY GOOD Realtor.  Having too many will cause for overlapping of properties and then it goes to procuring cause in which one gets paid.  Now, you can get some wholesalers but they usually don't know if the property will fit the requirements and regulations but you can learn that from the Realtor.  That way the properties don't overlap and it doesn't cause any problems.  (this has happened to me before here in Florida) Once you get more info from the agents you can hone in on which area you need to focus on.  Make sure you do your research as well.  Go to AirBNB app and research which areas have the most listings, that usually means that its a HOT area and if you run it right you can succeed.

Jonathan Small · Answer

@Nicholas Aiola Great question because it shows you are willing to research more than one market.  When starting out, I’d recommend focusing on one or two markets max. It’s better to get to know a market really well—understanding the neighborhoods, trends, and key players—than to spread yourself too thin. Once you’ve built some confidence and systems, you can start exploring additional markets.

I personally focus on 2 markets that are about 20 mile radius.

Make sure the market(s) you choose align with your investing goals, whether that’s cash flow, appreciation, or both. And don’t forget to build a solid local team—agents, property managers, etc.—to help you succeed.

Quality over quantity wins every time. Good luck!

Rajan S V · Answer

This is a 2 part question.

If you haven't started yet and looking find your market(s), I'd find 2-3 market that would fit my criteria, start learning everything about those markets and would start interviewing my team. Once you start seeing the deals, I'd start with one market to actually invest before I branch out.

If my deal didn't work out or didn't work out the way I expected, I'd do an analysis of what went wrong and switch only if the market doesn't suit my needs.

You start out, grow and scale in that order.

Jake Baker · Answer

@Nicholas A.

House Hacking a primary residence is the best way to generate wealth. After House Hacking, or if you can’t find a way to House Hack, you should invest where you feel you have a competitive advantage. I invested in Jacksonville, FL, because my old job would fly me there multiple times yearly. I learned about the city over time and began my out-of-state investing journey.

Whatever market you choose, be sure to nail down your buy box. This will allow your agents and wholesalers to better assist you.

Rene Hosman · Answer

@Austin Wolff recently went through this process of identifying markets to purchase in and he goes over his thought process in this episode on the Rookie podcast about how he used the MarketFinder here on BiggerPockets to find markets that met his criteria

Podcast: https://www.biggerpockets.com/blog/rookie-473

MarketFinder: https://www.biggerpockets.com/markets

Jaron Walling · Answer

@Nicholas A. Everyone does that a little when starting out but statically speaking spreading effort into multiple markets is not the best use of your time. Time is a valuable resource and "spending" it everywhere at once isn't worth the effort. You're better off focusing on specific markets, specific neighborhoods, analyzing numbers, and building an ideal buy [box]. Build connections with local professionals, talk to them in person, and value there time over yours. That's how you gain the information you need to AVOID MISTAKES.

Look for a proven market and make it your backyard.

For my family investing OOS is a big long term goal (most likely south with mountains), but it's never been the main plan.

Tim Delaney · Answer

Don’t pay attention to what other people do. I only invest in my home market. I have over 50 units. I find it easier to know my market and various sub markets really well. There is also ease of management in having a handful of tradespeople that can deal with all my properties. I can also allow a tenant to grow with me - just moved a family from a two bedroom to a three bedroom apartment.

Personally the only reasons I would choose to invest in multiple markets is a) because I wanted an excuse to go somewhere regularly or b) for economic/geographic diversity.

I had the advantage that my home market was good. If you can’t make it work in your market I would pick one and go deep into it. There are many nuances in any one market that take time and knowledge to really understand.

How many markets to focus on at once?

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