How to Choose a Real Estate Investing Market

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!
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Find an Investor-Friendly Agent in Your Area:
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Grab the “Picking a Market Worksheet”:
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Catch Dave and Henry on the “On the Market” Podcast:
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Books Mentioned in Today’s Show:
Long-Distance Real Estate Investing: store.biggerpockets.com/produ...
Start with Strategy: store.biggerpockets.com/produ...
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Connect with Other Investors in the BiggerPockets Forums:
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Tools Mentioned in Today’s Show:
Census Reporter: censusreporter.org/
ChatGPT: chat.openai.com/
FRED: fred.stlouisfed.org/
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Connect with Dave, David, and Henry on BiggerPockets:
Dave: www.biggerpockets.com/users/d...
David: www.biggerpockets.com/users/d...
Henry: www.biggerpockets.com/users/h...
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Follow Dave, David, and BiggerPockets on Instagram:
Dave Meyer: @thedatadeli or / thedatadeli
David Greene: @davidgreene24 or / davidgreene24
Henry: @thehenrywashington or / thehenrywashington
BiggerPockets: @biggerpockets or / biggerpockets
Show notes at: link.chtbl.com/BPRE
00:00 Intro
04:14 How to Find Housing Market Data
08:53 Population, Supply, and Demand
13:36 Vacancy Rates and Inventory
16:54 Calculating Rent-to-Price (RTP)
22:27 Where to Find Cash Flow vs. Appreciation
32:27 How to Start Researching NOW
33:34 Tenant vs. Landlord-Friendly States

[@spidaman8888]

My three favorite channels: Biggerpockets, Stock Brotha, & How Money Works. Great to watch! 🔥 🔥 🔥

[@estherkelly3265]

What a great video! Exactly what I needed right now!

[@marceliarakoski6394]

Amazing video thank you hard working 😊😊😊

[@AfricanApples]

Very interested in this topic. Thxs

[@marylouisone]

Cool episode ! Thank you bunch for such valuable info
Would it be possible to create an episode that goes in details on how to implement AI in REI ? Greatly appreciated

[@mattbadger4305]

So maybe if someone is focused on cash flow they might also want to focus on adding value to the property. That may lead to building equity and higher rents?

[@alvinsingh9750]

Cash flow first, than money from cash flow, buy property with appreciate

[@marylouisone]

That’s what my thought process as well Glad some one else thinks the same

[@chrissprague4025]

what are other examples of companies that I can piggyback off their demographics research. Thanks for any advice

[@XavierWConzet]

Second!

[@chrispizzola8664]

Whys the guy with the air pods looking at the ceiling when hes talking

[@HJMRealty]

Texas seems to violate the theory that if there's land to build on you won't have much appreciation. I'm in Austin, and although we're surrounded by empty land, we've seen crazy appreciation/inflation in real estate the last five years.

[@finicum11]

Not totally true. Available land with less than a 45 minute commute to most jobs isn't readily available in Texas.

[@HJMRealty]

@@finicum11 I respectfully disagree. 😎

[@finicum11]

@@HJMRealty if there was more land available in Austin, it wouldn't be as expensive. Businesses have been moving into Austin like crazy over the past decade, driving up demand on land, which also is driving up prices. There's always land to build on, but prices go up as the more desirable plots becomes more scarce.