Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Real Estate Deal Analysis & Advice
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated almost 4 years ago on . Most recent reply

User Stats

31
Posts
24
Votes
Davide Formica
  • Real Estate Agent
  • Columbus, OH
24
Votes |
31
Posts

Market Analysis for a Real Estate Multifamily Investment

Davide Formica
  • Real Estate Agent
  • Columbus, OH
Posted

Before getting into the details of a property, the first step is to analyze the market demographics and economy to ensure that it supports healthy rental growth and demonstrates demand with a growing population.

Below is an overview of the more critical factors that we analyze as they will directly impact housing demand and the performance of an investment property:

  • Poverty Rate – The poverty rate in the asset’s local area must be at or below the MSA where you’re investing.
  • Median Household Income – We like to see the household income at $35K or higher depending on the asset class and new resident qualification standards.
  • Unemployment Rate: The Unemployment rate in the asset’s local area must at a similar level or better than the MSA where we’re investing.
  • Population growth and jobs: Where there are jobs, there’s population growth. We look for deals in MSAs with an existing trend in population growth and economic developments that will fuel continued expansion, such as corporations moving into the city, developing transport and communication, etc.
  • Schools – Depending on the asset class, we like to see the assigned school’s rating at an above-average level.

Investing in a sound submarket with a growing population is the basis of any real estate investment. It’ll provide the tailwinds necessary to propel the performance of the investment.

Helpful Resources:

  • United States Census Bureau – QuickFacts – The most up-to-date and accurate data directly from the source.
  • City-Data.com – You can search by city and zoom in to the local area level to see Median household income, unemployment, residents below the poverty level, and more.
  • TownCharts.com – Powerfully illustrated and interactive data on Demographics, Housing, Economy, Education, Healthcare
  • GreatSchools.org – Check the assigned schools and the rating based on an address.

What factors do you evaluate?
What tools do you use?

Loading replies...