Market Analysis (feeling a little overwhelmed)

[Alex Pepe]

I'm working through the process of selecting a few markets to focus on for my first property and I'm feeling a little overwhelmed by the process.  Been working all day compiling a list of about 20 cities, now trying to bring it down via proper analysis to no more than 3.  I'm looking at job and population growth, as well as median rent and home prices to make the market suits my beginners budget.  Just feel a little overwhelmed trying to sort through each city and the towns within.  Please share guidance if you have been through this.

[Henry Clark]

@Alex Pepe

Looked at your background and some of your other posts.  

A.  Your job.  How much travel, how much do you stay at home, etc. etc.  What is your territory area (driving distance) relative to Austin?

B.  What is your life style?  Single, married/kids? Living the life (apartment complex with everything) or watching your P/Q's?

C.  Do you own a place or are you renting?  What is your monthly P/I or rent?

D.  If you own a place how many years have you lived there?

Your about to make your "FIRST" investment. This is different than the majority of the investors on this forum, thus you have more REI angles than the rest of us.

Realize Austin is a hot market.

Depending on the answers to the above.

1.  Your first investment should be local, not out of state.  Learn close to home.  After you have learned and established a system then move to OSS if you want to.

2. You can House Hack, Rent Hack, Trailer Hack, BRRRR, MFG Hack, your Rent or P/I becomes part of the deal. Can't do this out of state.

3.  Are you looking for income or Appreciation? Or both?  This will help you narrow the field.  If your looking for Appreciation, where you live is great.  If your looking for return somewhere else will be better.

4. After you live somewhere as your prime residence 2 continuous years out of 5, the Capital Gain is "not taxed". This beats any other investment you can do. Check with your Tax accountant on how this applies to a MFH hack situation. You can start your next 2 years at another location during the same 5 years. You can't do that out of state. Run the numbers. Run the numbers. Ordinary income tax rate on say a 5% OSS income property annually. Versus 0% Capital gain rate on a 20% Capital gain appreciation REI after 3 or 4 years. Change the numbers to fit your situation. Don't have to do a 1031 to do tax avoidance.