How to evalate different markets

[Richard Michael]

Hi, my name is Richard and I'm new to BiggerPockets.

I'm looking for advice on how to evaluate and analyze different real estate markets. If anyone has a process they use, please share.

I am looking for strong cash flow markets that are well priced and will experience mild appreciate over the years. The primary goal is strong cash flow, appreciation is just the icing on the cake as far as I'm concerned. Currently I study a market buy simply reading as many as news articles relating to the specific real estate market. I then look at home prices and work the numbers. My next step (which I have yet to do) would be to call a few local realtors and a property manger in hopes of gaining from their prospective.

I know most advise starting in your local market since you are likely to understand and know the area more thoroughly, however I think the Phoenix market is to hot right now and does not offer the type of cash flow I'm looking for (seeking out multifamily units and the 2% rule). I have grandiose plans as I'm sure we all do, but I would like to find a favorable market where I can continue to do deals over the years and form a network. San Antonio is at the top of my list as of now.

Thanks,

Richard