Help In Analyzing Markets

[Account Closed]

Hello everyone! I am just starting out in RE., and would appreciate your help. I currently live in Brooklyn, NY. and consider buying 4 unit multifamily property out of state. Probably something like New Jersey, Rhode Island, Massachusetts, Connecticut, Maryland. I would like to get your help on analyzing markets. What is the first thing you look at when research a market and where do you look it up? Do you pay attention at vacancy rates, job openings, crime data, school districts? Also, what is the best place to look at deals? Is it Loopnet, MLS, broker or something else? Thank you.

[Jotham Busfield]

Hi Bohdan,

There is a book by David Lindahl called "Emerging Real Estate Markets" which is great.  He mainly stresses paying attention to population and job growth but covers a lot of helpful topics.

I live in Massachusetts and own two investment properties here, but looking to explore other markets in other states.  In addition to population growth and job growth, I am looking at:

- Unemployment and poverty rates

- Job sector diversity and service industry growth 

- Foreclosure and vacancy rates 

- Local leadership and vision for future growth 

- Average age of residents, % of ages 18-65 in the workforce

- Rent to purchase price ratio (purchase price / average annual rent total)