All Forum Posts by: Art Perkitny

@Darryl Jennings

Here are some of the metrics that I find valuable to understand:

- Population

- Home Values

- Household Incomes

- Rental Vacancy Rate

- Homeowner Vacancy Rate

- Poverty Rate

- Educational Attainment Rate (High School/GED & Bachelors)

- Number of Housing Unit

- Rent to Income Ratio

- Rent to Price Ratio

- Population on SNAPS (supplemental nutrition assistance program) percentage

- Property Tax Rate

- Median Age of Buildings

- Number of Structures by Units (SFR, Duplex, Triplex, Quadplex, etc...)

- Median Rents by Number of Bedrooms

- Unemployment Rate

- Employment Sectors Percentages

These are just some of the indicators that will help you understand the quality of an area as well as the kinds of returns one is to except.

By taking into consideration the direction in which each of these metrics are trending, you will better understand where the market a whole may be heading.

It's also important to also analyze the various sub-markets that make up major markets. These will often vary to a high degree from the averages a general market analysis will yield and possible help you uncover hidden opportunity. 

Hope this helps! 

@Renee Ren@Renee RenThe list you have made is a great first start! @Renee Ren

I suggest you further refine your search by taking a look at the data, such as demographic data from the Census. This info will give you a decent idea of what to expect and help filter down your search to a few cities.

Some of the metrics that I find valuable to understand are:

- Population

- Home Values

- Household Incomes

- Rental Vacancy Rate

- Homeowner Vacancy Rate

- Poverty Rate

- Educational Attainment Rate (High School/GED & Bachelors)

- Number of Housing Unit

- Rent to Income Ratio

- Rent to Price Ratio

- Population on SNAPS (supplemental nutrition assistance program) percentage

- Property Tax Rate

- Median Age of Buildings

- Number of Structures by Units (SFR, Duplex, Triplex, Quadplex, etc...)

- Median Rents by Number of Bedrooms

- Unemployment Rate

- Employment Sectors Percentages

These are just some of the indicators that will help you understand the quality of an area as well as the kinds of returns one is to except.

Also take into consideration the direction in which each of these market indicators are trending. This will better help you get an understanding of not just where market is today, but also where it may be heading.

Once you have selected a couple cities that meet your criteria, it's then time to dive deeper into researching the sub-markets that comprise each of them.

The sub-market selection will have more of an impact on price as well as investment performance than the city itself.

If this is your first investment, I don't suggest trying to find the highest cash flowing property however. The reason being that this will likely be in a D/F neighborhood, which will expose you to more risk than needed when starting out.

Also, I have attached a link to a spreadsheet that may help you with your search. 

It lists median home values and rent for all cities over 100k in pop and I have added in the 5 year CAGR for population. 

One this of note is that an overwhelming majority of cities with median values under 100k have experienced population losses over the past half decade. 

Targeting only properties in this price point will surly limit you ability to find markets with strong growth. 

Link to Cities Comparison Spreadsheet  

Hope this helps

@Sippy Hira

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.

I then suggest beginning your search by looking at the data, such as demographic data from the Census. This info will give you a decent idea of what to expect and help filter down your search to a few cities.

Some of the metrics that I find valuable to understand are:

- Population 

- Home Values

- Household Incomes

- Rental Vacancy Rate

- Homeowner Vacancy Rate

- Poverty Rate

- Educational Attainment Rate (High School/GED & Bachelors)

- Number of Housing Unit

- Rent to Income Ratio

- Rent to Price Ratio

- Population on SNAPS (supplemental nutrition assistance program) percentage

- Property Tax Rate

- Median Age of Buildings

- Number of Structures by Units (SFR, Duplex, Triplex, Quadplex, etc...)

- Median Rents by Number of Bedrooms

- Unemployment Rate

- Employment Sectors Percentages 

These are just some of the indicators that will help you understand the quality of an area as well as the kinds of returns one is to except.

Also take into consideration the direction in which each of these market indicators are trending. This will better help you get an understanding of not just where market is today, but also where it may be heading. 

Once you have selected a few cities that meet your criteria, it's then time to dive deeper into researching the sub-markets that comprise each of them.

The sub-market selection will have more of an impact on price as well as investment performance than the city itself.

If this is your first investment, I don't suggest trying to find the highest cash flowing property however. The reason being that this will likely be in a D/F neighborhood, which will expose you to more risk than needed when starting out. 

Hope this helps

@Don Thornton

The Annual Census, known as the American Community Survey, is a good resource to consider using. 

Rents are broken down by value cohort and even by number of bedrooms

Here is an example for Cleveland, OH

@Robert Navarrette

Here is a map showing the rent to price ratios of all Chicago neighborhoods

Below are the top ROI neighborhoods from the above analysis

West Englewood, Chicago, Illinois 0.71
Riverdale, Chicago, Illinois 0.68
West Pullman, Chicago, Illinois 0.64
Roseland, Chicago, Illinois 0.61
Englewood, Chicago, Illinois 0.59

I would like to add that investing solely based on high returns will usual not yield a desirable result. 

The locations with high ROI are the roughest neighborhoods in the city and will bring with them loads of issues.

If this is your first investment and/or you are out of state and/or you want passive cash flow, I would advise you to look at the more moderate returning neighborhoods

Hope this helps! 

@Neetu Nagi 

Take a look at the sheet again, I have added in median rent for each city 

Link to Updated Spreadsheet

@Account Closed

The Annual Census, known as the American Community Survey, is a good resource as well. 

Rents are broken down by value cohort and even by number of bedrooms 

Here is an example for Cleveland, OH

@Yerik Akhmetov

As others have stated, the fundamentals are solid 

Data backs these claims up

Incomes have gone up over the past few years

The median year built for housing units has gone up due to new construction

As for the rental market, renters make up 43.7% of households

Hope this helps   

Hey @Anthony Henriquez

It just so happens that the Hillcrest Neighborhood in Patterson is delimitated exactly as Census Tract 1801 in Passaic County, New Jersey, meaning it is rather easy to data for exactly this area. 

Hope this help! 

@Robert Perez

This resource I put together may help: Link to Home Values by City Spreadsheet

You will want to investigate the cities showing median home values at 100k or less. 

Essentially this will yield the cities that have the largest inventory of homes around this price point. 

The properties at 100k will also likely be located in C (on an A to F scale) neighborhoods since D/F properties will be in the mid to low five figures in these areas with median values at 100k.