All Forum Posts by: Mahde Atmna

Hi @Mahde Atmna - When I am researching my new market (outside of my state), I usually look for below 2 key indictors -

1. Check for population growth - A growing population usually supports good appreciation. This may impact the 1% rule but if you do the numbers right, you should be able to find the right cities to target.

2. Check for crime rate - Neighborhood scout website usually provides crime rate chart. I usually look for cities where overall crime rate score is below 500 and have been declining over the past few years. 

Apart from these 2 indictors - median income, industries in the area, etc. gives you a good overall picture of the market. 

Once I shortlist my market, I pick up a few properties that I would be interested in and try to underwrite the deal with as many details I can find, that gives a good idea of what expenses you should account for. E.g. in a college town, sometimes there is a school tax which may impact your bottomline and in some growing city, the property tax would be higher than other cities. So, understanding these intricacies  will help come to further conclusion. Patience and time is the key. :)

Others - please feel free to comment on my approach. any feedback is appreciated.

@Mahde Atmna I am a local Invesment expert in the Pittsburgh PA market, but I would surmise that its the same for most areas. I would focus on something local so you can drive the neighborhoods and you can check on the project and the rental on a regular basis. if you have to buy out of state it will make it just more challenging. Focus on a D plus or B minus area. Focus on quality verses ROI. Dont just look at the numbers. Deferred maintenance, layout of the rooms, parking, houses nearby condition, etc..etc.. I am just touching the Tip of the Tip of the iceberg. You will need to spend hundreds of hours getting to know this process and the area you focus on. Hard work, patience and time.