Before you buy your first rental property, you’ll need to choose a real estate market. If you’re like many Americans, your own backyard may not offer what you want out of an investing area. So, where do you go to find cash flow or appreciation? Today, we’re walking you through choosing a real estate investing market, the metrics to look for, signs of growth and decline, and which markets offer investors the biggest benefits.
How hard is it to do market research? If you have access to the internet, you can research a market in a matter of minutes. But knowing WHAT to research is the most crucial part. Dave Meyer, VP of Market Intelligence at BiggerPockets and host of the On the Market podcast, shares his steps to market analysis and how he analyzes each market to ensure it’ll make him the most money in the long run.
We’ll touch on population and migration, supply and demand, vacancy rates, rent-to-price ratios, landlord vs. tenant-friendly states, and the telltale signs that a market will have high or low cash flow. So before you buy your first or next rental property, make sure you do THIS research!
In This Episode We Cover:
How to choose a real estate market in 2024 (market analysis 101)
The market “fundamentals” that show whether an area is worth investing in
Vacancy rates and signs that you’ll have a HARD time finding tenants
The 1% rule and whether or not we’d still use it in 2024
Cash flow vs. appreciation markets and who should NOT be chasing cash flow
Tenant vs. landlord-friendly states and how to quickly tell which is which
And So Much More!
Links from the Show
Find an Agent
Find a Lender
BiggerPockets Youtube Channel
BiggerPockets Forums
BiggerPockets Pro Membership
BiggerPockets Bookstore
BiggerPockets Bootcamps
BiggerPockets Podcast
BiggerPockets Merch
Listen to All Your Favorite BiggerPockets Podcasts in One Place
Learn About Real Estate, The Housing Market, and Money Management with The BiggerPockets Podcasts
Get More Deals Done with The BiggerPockets Investing Tools
Find a BiggerPockets Real Estate Meetup in Your Area
Expand Your Investing Knowledge With the BiggerPockets Books
Be a Guest on the BiggerPockets Podcast
Ask David Your Question
Dave's BiggerPockets Profile
Dave's Instagram
David's BiggerPockets Profile
David's Instagram
Henry's BiggerPockets Profile
Henry's Instagram
Grab the “Picking a Market Worksheet”
Catch Dave and Henry on the “On the Market” Podcast
Census Reporter
ChatGPT
FRED
Books Mentioned in the Show:
Long-Distance Real Estate Investing by David Greene
Start with Strategy by Dave Meyer
Click here to listen to the full episode: https://www.biggerpockets.com/blog/real-estate-886
Interested in learning more about today’s sponsors or becoming a BiggerPockets partner yourself? Email advertise@biggerpockets.com.
Learn more about your ad choices. Visit megaphone.fm/adchoices
