If you are looking at SFR's, financial metrics like CAP rate are important, but they are not a determinant of value.

Hi all...When virtual wholesalers (like me) seek data to determine the viability of new markets, I often hear them refer to the inventory "days' supply" there, and/or the "average days to sale" metrics, or available number of listings currently vs. sold properties over a period of time. 

In order to pick market you can either go with what excites you or go with top performance metrics (see my bias here). 

I think it is all automated based on some metric they use.

@Michael Kim there was not a guarantee made by @Joe Fairless, fast forward to 1:01:52 of the show 227 youtube here is the question:Brandon Turner:Last question I got before maybe we move onto the fire round is like what do you look for in terms of these deals for metrics, like are you, if anything just you know makes you a certain amount per month or a certain overall return for your investors, an Internal Rate of Return (IRR), or how do you look at that?

Take some time to learn the key metrics and terminology such as cap rate, cash-on-cash return, and potential for appreciation.

Staying focused on all the metrics will help you identify ways to improve improve your processes as you grow.Down the road when you're better qualified for financing you might find deals like this problematic because if you choose to refi or want to sell the property in the middle of the loan term your effective rate on the capital will skyrocket because the interest was built into the purchase price.

Love the deal funnel idea and have been practicing analyzing properties to learn the various metrics and inputs so we understand them.

Until there's a market correction AND more homes come to market (ie more housing starts), these classic metrics are less and less useful. 

All the 5 people that you hang around with should be better than you in ever metric regarding real estate.