All Forum Posts by: Cheng Zhou

Hey folks, I want to share my experience using Chat GPT to help you do efficient market research. Some tips to keep in mind when using Chat GPT:

1. ask specific questions, with guidance on what data points do you expect.  This article has more tips

2. Be sure to verify data points Chat GPT provides. It draws data from the Internet which can contain inaccurate data.

In this example, I was trying to evaluate Atlanta as a real estate market compared to some other popular cities in the US. I think if I were to find & summarize these data myself, it will probably take hours. With Chat GPT it's just a matter of forming a prompt.

Here is my prompt and answer from Chat GPT:

From me:

I am doing some research on Atlanta, Georgia as a rental property market. Can you compare Atlanta to Tampa, Phoenix, Austin based on the following criteria:

1. Population growth

2. Job market

3. Weather

4. Property tax

5. Average house price

From Chat GPT:

Sure, I'd be happy to help you compare Atlanta to Tampa, Phoenix, and Austin based on the criteria you listed.

1. Population growth:

Atlanta has experienced steady population growth over the past decade, with an estimated population of 498,715 in 2019, up from 420,003 in 2010, according to the U.S. Census Bureau. Tampa has also seen population growth over the past decade, with an estimated population of 399,700 in 2019, up from 335,709 in 2010. Phoenix has experienced even more substantial population growth over the past decade, with an estimated population of 1.7 million in 2019, up from 1.45 million in 2010. Austin has seen the most significant population growth among the four cities, with an estimated population of 985,000 in 2019, up from 790,400 in 2010.

1. Job market:

Atlanta has a diverse economy, with strengths in several sectors, including technology, logistics, and media. The city is home to several Fortune 500 companies, including Coca-Cola, Delta Air Lines, and UPS. Tampa's economy is also diverse, with strengths in healthcare, finance, and tourism. Tampa is home to several major employers, including Raymond James Financial, Moffitt Cancer Center, and Publix Super Markets. Phoenix's economy is driven by several sectors, including healthcare, technology, and manufacturing. The city is home to several major employers, including Banner Health, Wells Fargo, and Honeywell Aerospace. Austin's economy is heavily focused on technology, with major employers including Dell, IBM, and Apple.

1. Weather:

Atlanta has a humid subtropical climate, with hot summers and mild winters. Tampa also has a humid subtropical climate, with hot summers and mild winters, but with more rainfall than Atlanta. Phoenix has a hot desert climate, with extremely hot summers and mild winters. Austin has a humid subtropical climate, with hot summers and mild winters, but with less rainfall than Atlanta.

1. Property tax:

Property taxes vary by county and city in Georgia, but the statewide average effective property tax rate is 0.89%, according to data from Tax-Rates.org. In Hillsborough County, where Tampa is located, the average effective property tax rate is 1.09%. In Maricopa County, where Phoenix is located, the average effective property tax rate is 0.72%. In Travis County, where Austin is located, the average effective property tax rate is 1.74%.

1. Average house price:

According to data from Zillow, the median home value in Atlanta is $315,220 as of March 2023. The median home value in Tampa is $293,000, in Phoenix is $397,260, and in Austin is $580,000 as of March 2023.

Overall, each of these cities has its strengths and weaknesses when it comes to population growth, job market, weather, property tax, and average house price. Atlanta and Tampa have similar population growth rates and job markets, but Tampa has higher property taxes. Phoenix has the highest population growth rate and a strong job market, but the weather can be very hot. Austin has the highest population growth rate and a strong job market, but the average house price is significantly higher than the other three cities.

Thought this is worth sharing for anyone who is doing market research. I am interested in the Atlanta market, if you are an investor/agent in the Atlanta market, would love to connect and learn from you, thanks

Thanks for all your replies! Great to know there are so many investors out there.

I did some more research by looking at some data from Redfin and Zillow. What I found is that there isn't a huge difference in terms of the avg appreciation and rent-to-price ratio from both areas in the past 5 - 10 years. The houses in the Sacramento area (e.g. Elk Grove, Rocklin) tend to be newer (one point for Sacramento).

I guess it's hard/impossible to determine which area is strictly better, though reading all the replies & doing some research is a good step forward. Thanks again!

Hi Chris, thanks for the reply! Yeah good point, I think the reason I wanted to start locally is that I am more familiar with the area and it provides the convenience of checking things out in person. Also, it's a bit overwhelming to look at out-of-state properties since there are so many choices and it's hard to narrow down to a specific market.

Compared to Florida, California would be more appreciation-friendly while Florida is more cash-flow-friendly. I do prefer cash flow to be honest. Do you have any recommendations on what long-distance markets to look at? e.g. Which city in Florida or any other state?

Hi BiggerPockets members,

I am new to BiggerPockets, so I want to start out by saying hello! I am located in the Bay Area and thinking of buying my first investment rental property. I have a budget around 600k, and with this number, I found that Oakland and Sacramento are two possible candidates where I can acquire a property that is in decent condition.

So my question is:

What do folks think of both areas in terms of appreciation, cash flow, and safety? Based on these 3 criteria, would you recommend one area over the other?

I guess the answer will vary based on zip codes or a specific deal. Regardless, appreciate it if someone can share some insights, thanks!

Note:

1. I definitely don't want to invest in dangerous areas, which Oakland is notorious for. But I think there are still some safe areas there based on my initial research

2. Sacramento is a pretty big area, to give some concrete area examples: Elk Grove, Folsom, Roseville are some areas that I have looked at