If you’re ready to make the jump into investing in real estate, you might be wondering where to find your first property. In my experience, there are certain qualities that make a great rental market.
On this episode, I’m sharing my list of characteristics that I look for when I’m buying a property. I’ll describe specifically what I have learned about rental markets during my time as an investor, and explain how you can find the right city to buy properties. Don’t miss episode 9 of Investing in Real Estate to learn more about assessing the market!
More About This Show
Making a profitable real estate investment isn’t as simple as buying a property anywhere you choose. In fact, if you want to make a smart investment, you’ll have to be informed about the city in which your property is located.
That’s why I’ve made a list of qualities that make a good rental market. I'm sharing the list that I use exclusively to find the right properties. Your list might vary; but this is a starting point from which you can adapt.
The first thing I look for in a rental market is a low vacancy rate. If you have to consistently switch tenants at your property, the cost can be enormous. Buying a house in a city where people aren’t renting is a waste of time and money.
Secondly, I like to purchase investment properties in states where taxes are low. This is a large reason why I will never purchase a rental property in my home state of New Jersey. The taxes are too high, and after all, every cost comes out of your bottom line.
My third qualification typically goes hand-in-hand with low taxes. I seek to buy in markets with American-based infrastructure. These are typically Midwestern cities. When the job market consists of hospitals, airports, and long-haul trucking companies, you can be sure that those jobs are stable.
On today’s show, I’ll explain many more qualifications from my idea of the perfect market. I’ll share personal anecdotes, and how to be sure you’re looking in the right places. I’m giving you ideas from geographical markers, to economic trends, and house-specific traits. Don’t miss this episode of Investing in Real Estate to hear my number one qualifier for finding the perfect market!
We’re ready to talk about your goals and want to help you learn more about earning legacy wealth for you and your family.
On this episode you'll learn:
- What vacancy rate should you aim for?
- How can you develop strong, long-term relationships with contractors?
- Why crime statistics can be inaccurate.
- Why boring appreciation is an advantage!
- The importance of hospitals in a rental market.
- And more!