Most important data in market analysis

[Eric Trompeter]

Hey guys,

Still pretty new to the real estate investing world in Austin, TX and I'm wanting to focus on a single zip code for now to learn the ropes a little.. My question is about researching the area for relevant data.

What's the most important things I should know about the market, assuming I'm looking to rehab or wholesale in that area?

From what I assume/read (J Scott):

1. sale $ /sq ft. (or just median sale price?)

2. avg days on market (as well as months of supply)

3. price ratios between distressed & retail sales, per J Scott (best way to find this???)

Any major things I'm missing? Obviously can get more detailed to accurately assess ARV/repairs... and include things like school districts, crime, levels of rehab needed (high end/low end), etc...

I want to be an expert in this area, show me the way!!

Thanks!

[Joe Villeneuve]

All of that, however, what is more important is that you realize how small (micro) markets are, and that you can't apply the same data from a market to all properties within that market.  

Example:  A 1100 sq ft 3/1 can cash flow at $400/month in one micro market, but a 1500 sq ft 3/1 can't be flipped in the same micro market because there is no interest in that micro market for it.  Now, 1 mile away, the exact opposite is true.

You have to know where the micro markets are and their "definitions" within all markets.

...and, in my opinion, your market and micro market analysis will be the most important analysis you will do.  The markets drive everything...including the rehab budget.