All Forum Posts by: Art Perkitny

@John Humphries, below you will find three maps showing the risk scores for each neighborhood you have inquired about, Cobbs, Fairhill, and Elmwood in that order.

As @Jimmy O'Connor has already stated, Cobbs Hill is definitely looking like the top candidate. Location gets better the further east you go and north of Market street in roughest. 

Fairhill is going to be mainly F rank. This location will offer you the highest risk and appropriately highest reward if you can handle the headaches. 

With Elmwood, locations on the southern end will be slightly better than the northern areas. 

Hope this helps! 

@John Warren

I see what you mean. The current version of the scoring algorithm does not factor in crime due to the fact that the data is sparse and reporting quality varies from agency to agency. 

This may be why the score is coming back as D and not C since the indicators that are considered are not the most ideal for the area. 

I would like to point out that the scoring is on a A to F scale. Not sure if you were aware, but this may partially explain the ranking as well. 

Nonetheless I do appreciate the feedback! 

Thanks @Eric Clement

At this time crime is not a factor. Reason being is that crime data is not available for all cities within the USA. In addition, the reporting standards vary wildly between agencies.

I the future I plan on possibly creating a new scoring system that does factor crime, but only for large cities that have the data-sets available.

Hey@Matthew Olszak

I would love to hear more specifically why you think Cicero deserves a higher rank and maybe I can tune the algorithm to perform better in the future.  

What grade would you say Cicero is on average? 

I think services such as mine compliment forums like this one. The former can be used to get a higher level perspective on a and quickly scan a large number of locations, the latter for more disparate, granular details that are hard to come by in a data-set format.

@Eric Clement

This may help you in deciding on a specific location to invest into within Indy.

The map shows the risk score for areas within Indy on an A to F scale.

The score is calculated by looking at eight risk indicators. 

The lower the score the riskier the area is to investors. 

@Coleman Cox

First and foremost, I would define my investing goals. That is, what is my appetite for cash flow vs appreciation. Also, how risk averse/affine am I. These parameters will help decide what kind of yields you are searching for, which you can use to filter down your list of macro markets.

Then I would start by looking at the macro market's fundamentals, that is the population, job and income growth over time.

After that, I would look to see what the rents and home prices are and how those are trending as well.

I would do a similar analysis, but at the sub-market level for the metro area you are considering investing in.

Other metrics that I find valuable to understand are household income, poverty, unemployment, and educational attainment. Also, the trend for the aforementioned metrics is also very important.

Lastly, you could study permit data to get a better idea of how the relationship between supply and demand is trending in your target market.

Hope this helps!

@Martin Fields

First and foremost, I would define my investing goals. That is, what is my appetite for cash flow vs appreciation. Also, how risk averse/affine am I. These parameters will help decide what kind of yields you are searching for, which you can use to filter down your list of macro markets.

Then I would start by looking at the macro market's fundamentals, that is the population, job and income growth over time.

After that, I would look to see what the rents and home prices are and how those are trending as well.

I would do a similar analysis, but at the sub-market level for the metro area you are considering investing in (Baltimore and Philly in this case).

Other metrics that I find valuable to understand are household income, poverty, unemployment, and educational attainment. Also, the trend for the aforementioned metrics is also very important.

Lastly, you could study permit data to get a better idea of how the relationship between supply and demand is trending in your target market. 

Hope this helps!

@Lauren Soderstrom, when evaluating a new market I like to look at the fundamentals. Indicators such as income, population, rent, home values and job growth will all give you a decent idea of where an area is going, which is important especially if you are planning on buying and holding long term.  

Looking at some of the indicators mentioned for Champaign County, we see that the population has been steadily growing over the past decade. 

Median rents and home values have also been consistently going up!

All this looks rather promising and in my opinion warrants further investigation

Hope this helps! 

@James Peluso

As others have said, there is opportunity in Milwaukee. 

With that in mind, I suggest digging deeper by studying the neighborhoods within the city to identify the areas with the most opportunity!

To help with this I have include below a map containing risk scores for areas within Milwaukee.

The scale is A to F and is generated by comparing eight different market risk indicators.

@Nik Moushon

Based on the data, Cicero is looking like a D area on an A to F scale. 

Things do get better as you move west however (see map below)

The average rent according to the most recent american community survey is $875, which is lower than neighboring Chicago's average at $1,029.