While algorithms can analyze data at scale, real estate isn’t just about numbers—it’s about nuances and the most important component of real estate is understanding its value, and that to me (maybe I am old school) but can only be done by physically visiting and walking the property.So for me, factors like local market conditions, property inspections, and borrower credibility can’t be fully captured in a formula.

85LTV ask on a LTR rental is a tough ask, when adding an STR factor, nearly every lender will reduce max leverage by 5%. 

@James Boreno You’ll likely owe taxes, but don’t forget to account for your adjusted cost basis, which factors in the original purchase price, depreciation over 10 years, and any capital improvements.

Focus on cities with favorable price-to-rent ratios, population growth, and employment trends, such as Des Moines, Oklahoma City, and Charlotte, while considering factors like landlord-friendliness and property taxes.

@Vincent WeselakIt’s a good idea to get an estimate for your insurance costs upfront since this can vary based on the property type and location, and it’s a key factor in evaluating your cash flow. 

I guess there has also been talk of moving some government entities out of Washington, like the FBI.How does all that factor into your analysis?   

The factors you mentioned are very important to keep in mind for any investment, but I like investing in areas I know. 

Ignore the $1,250 per month because that's your cost of housing, if you didn't pay that on the home you'd have paid that in rent so that's a non factor. 

This comprehensive approach captures emerging trends and significant shifts in the US economy, offering a detailed benchmark for metro performance.Our report and interactive online tool break down the components of the BPC index, delivering actionable insights into the factors driving short- and medium-term economic performance in US metropolitan areas.

* What are some factors to consider when identifying these hot spots?