All Forum Posts by: Kyle Baer

@Kyle Baer welcome to BP

I think your question may have confused some people - Maybe me. If you are asking how to pick a market to invest in, I recomend your own market. Investing out of your area increases both risk and cost.

I think what you are asking is how to evaluate the market you are in and how to diferentiate exactly what neghborhoods or sub arkets to invest in and how to evalualte them. The A B C thing is a crude generalization. My B may be different then your B, especially if we are talking different cities. 

To learn the market you are investing in follow the 100 house rule. 

                       "Until you have looked at 100 houses you really don't really konw your Market"

So how do you do that? Look at all kinds of deals; wholesalerdeals, open houses, listed properties, FSBO, onsite auctions,etc. It is especilly good if you can get another investor to let you see their properties. Ask them what they are going to do with the property and what the numbers are.

 No tools, just network and see where the highest returns are coming from. No you do not need a realtor. I have done 100s and 100s and 100s and never use a realtor, they do not for the most part have the deals. If you are cash buyer all you need to do is connect with those doing deals. I have been seeing 10% +++ net caps being purchased weekly for many years. I just picked up yesterday a 7 unit, with about 20% net cap no realtor involved. BTW this ABC thing people use is useless. For the most part you are not going to make money in A areas, for rentals, sure maybe a flip. Just go to your local RE meeting, you will learn more in a day then you will in a month sitting on the internet. 

@Kyle Baer "ask-hole" is a new one, haha, but that's hilarious. Any reason why you're not buying your first deal in your own area?

I'd absolutely look in my own backyard first to buy as an owner-occupant bc you'll need less capital vs. buying investments at a distance, which is what I assume you're referencing here? Not only that, you'll likely know your area better and can learn easier with how to run your property than you can vs. long distance. If you can house hack a small multifamily with a residential loan, that would be my advice, and how I, and many other investors get their start.

If, let's say, your home market(s) are too costly then that's when you can take your focus into outside markets.

Here is a good article on neighborhood classifications:

https://realwealth.com/learn/c...