Choosing a target market

[Monica Ponton]

Hi all! My question is related to choosing a target market. The market I live in is quite high, although in very high demand and growing rapidly. I have been seeking to identify a market with lower rates outside of my area. What advice can anyone offer on choosing a market at a distance from my own as a beginner? The market I am looking into is 2 and half hours away from me, but much cheaper. Is this a good idea as far as targeting a market? Or do I need to be closer to home? 

[Drew Sygit]

An agent and a PMC should work together to find you great rental properties.

We don't recommend relying solely on an agent as they're out of the picture after the closing.

No one has more "skin in the game" than a PMC as they have to deal with the property every day until an owner sells or fires them.

Also recommend finding your own Inspector and not one referred by an agent. You want an unbiased Inspector.

Then:

• Do a SWOT analysis of your resources
• Write down your real estate goals
• Pick an asset type: SFH, 2-4 units, 5+ units, or something else like MHP.
• Pick an asset class: Class A, B, C & D properties, research pros & cons, pick one to focus on
• Pick a real estate market that matches your resources & goals
• Contact local agents & PMC’s to start sending you listings to analyze
• Analyze a few deals weekly, get comfortable with the market and refine what you're looking for