Help Picking a Market

[Priya Gohil]

I need help picking a market. Just watched Bigger Pockets podcast/video about picking a market here as well as read through this article about markets with both appreciation and cash flow here

First lesson - keep the end in mind. So, my end goal is to replace some of my current income. Ideally, want to replace all of my income, but I'll start small. Therefore, I think I'll be placing heavier emphasis on cash flow markets. That way I can also build more capital to invest elsewhere. However, I would still like to either maintain or get some appreciation on my investment. I want to invest around 50K, looking around for properties around $250k.

Second lesson - look at market data. I'm always trying to find good data. I really like the  appreciation vs. cash flow article here, but also not sure where to look for things like where businesses are moving to and types of jobs in the area written in the same way as that article. For example, when I google, I often find those types of "Top 10 cities" without knowing where the data is coming from, what the methodology is, and what parameters are they looking at. These types of articles vary a lot. Am I being too data centric now? idk.

• Correct me if I'm wrong, I keep hearing about biggerpockets.com/insights on multiple videos and podcasts - and I thought it was a database of information you can sift through, sort, etc. similar to the excel sheet in the appreciation  vs. cash flow, but now that I've searched through the site it's just BP PRO blog articles?

Third lesson - where is your unfair advantage. Other than California, which I can't afford right now, the places I've been looking at and can afford...well, I don't know anyone in that area. So don't think I have an unfair advantage anywhere else. So I will have to go about calling property managers and real estate agents to get a better idea.

Now, everytime I watch a video, listen to podcast, read an article, look at instagram, etc. different cities attract my attention, and I can't seem to decide where to focus on. After a couple of analysis in one area, I often jump to another area completely different area then start feeling like I can't find anything.

These are cities that caught my attention since digesting all these real estate investment content.

North Carolina: Raleigh-Durham, Charlotte, High Point

• 1. For the universities and schools in the area as well the research triangle area for Apple's first East Coast campus.
• 2. High point for it's accessible entry point
  3. Also, the gains I've seen here https://www.howmoneywalks.com/... 

Tennessee: Memphis, Knoxville

• 1. In a BP video, Memphis was noted for it's RTP of 1.04%, low tax rate, and "could generate 20% can on cash return" (though where they are getting these number, idk.)
• 2. However, a bit weary about Memphis because of how much $ is moving out of that city https://www.howmoneywalks.com/... same with the cities in Pennsylvania and Minnesota

Pennsylvania: Pittsburg, Philadelphia

• In the article I mentioned before early in my post, both cities seem to have a good balance of both appreciation and cashflow.

Minnesota: Minneapolis, St. Paul

• Because it also seems like an accessible entry point.
  

How long should I stick it out to find property in a specific area, before moving on to the next? I also understand looking at a city isn't just it, but that it's about neighborhoods, and sifting through the properties, talking to the real estate agents/property managers etc. I guess, how do I decide where to commit my research to before contacting all these people and sticking it out. I feel like my tendency to look at properties include the sun belt states (Tennessee, North Carolina, etc.) Is it because of all the research I'm doing or some bias? 

[Priya Gohil]

Reflection Post

**This is for anyone reading my post and who was in my position when I first wrote it.**

Which market should I invest in and how long should I stick it out to find property in a specific area, before moving on to the next? 

Before I answer this question, I think it is important to make sure you know what want and can afford.

For me, I wanted a property that was pretty much turn key and required minimal updates (painting or adding washer-dryer) as a buy and hold investment. I wanted something around 250k at the time of this post, but actually I wanted something around low 200s. My end goal was to have a mix of cash flow and appreciation as a buy and hold investment.

I had to reevaluate many times how much I was willing to spend. I think at times I caught myself willing to spend A LOT more than what I was truly comfortable with. I think I would make excuses or adjust the criterias just to make something work. 

 I really wanted to invest in certain parts of North Carolina. However, after about 3 months of crunching numbers, it just wasn't working out the way I wanted. I felt spread thin or had to look for other ways to finance the property. (Disclaimer: I was looking at a very specific part of NC. I am sure there are deals to still be found there or it would make a good investment for someone).

I didn't really think much of Ohio until I posted here on Bigger Pockets. Then I remembered I have coworkers out there! I picked the brain of my coworkers, and asked what areas they lived in and what they thought of certain neighborhoods. Ever since, I started to notice companies that were based in Ohio or had headquarters there. From the return address of the mail I received to the the address listing of apps I use at work, Ohio caught my eye. It wasn't much of an "unfair advantage" but I did start to notice Ohio a lot more in my day to day. This got me more comfortable with the idea of investing in that market. To top it off, the market was more within my price range, and I started to see numbers that I was excited about.

I started looking in Ohio in December. Started putting offers in around late January. Closed in mid-March.

TDLR; In my experience, the criterias you adjust for after a couple months of just looking and running numbers will help you determine which market might suit you the best. Lastly, I'm not sure if it makes sense to give a specific duration for how long you should search within a market (considering economic conditions and all), but if I had to I would look into a market for about 3+ months before moving on to the next.

Hope this helps someone & thanks to everyone who responded to my initial post!