Real estate markets can vary street-by-street, county-by-county, and even state-by-state. While some real estate markets may have high cash flow, others will favor appreciation, and the rest may operate on a more hybrid model. But, with the housing market changing so quickly, it’s becoming more viable for in-state investors to stretch their investing areas to out-of-state opportunities.
Don’t worry if you’re a rookie when it comes to out-of-state investing, so is Dave Meyer, our VP of Data and Analytics. For the majority of his investing career, he’s invested in Colorado. Until he moved to Europe, he never thought about investing in other states. But now he’s got the itch to try out other markets that aren’t as low-cash-flow. This is doubly true for all investors as states like Arizona, Texas, and Florida explode in rent growth and home price appreciation.
Maybe you feel out-of-state investing is a little too risky for you. Or, maybe you just don’t know what to look for. That’s exactly why Dave has come up with the seven metrics that every investor should look at before investing in a new area. If you’re able to find all seven of these in one market, let us know in the comments! We promise we won’t try to outbid you…
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Check out Last Week’s Episode on Housing Affordability:
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Grab Dave’s Slide Deck on All Seven Metrics:
https://www.biggerpockets.com/files/user/kailynb1/file/the-7-signs-of-a-great-real-estate-market-2022?utm_source=youtube&utm_medium=description&utm_campaign=none
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Find an Investor-Friendly Agent in Your Area:
https://www.biggerpockets.com/agents?utm_source=youtube&utm_medium=description&utm_campaign=none
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Top 50 Housing Markets for Home Price Appreciation and Sales Growth:
Top 50 Housing Markets for Home Price Appreciation and Sales Growth in 2021
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Grab the Book “ Long-Distance Real Estate Investing”
Long-Distance Real Estate Investing
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Your Step-by-Step Guide to Buying Out-of-State Investment Properties:
Your Step-by-Step Guide to Buying Out-of-State Investment Properties
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Join BiggerPockets Pro for Up-to-Date Analytics and Articles:
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Connect with Dave on BiggerPockets:
https://www.biggerpockets.com/users/davem27?utm_source=youtube&utm_medium=description&utm_campaign=none
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Follow Dave on Instagram:
@thedatadeli or https://www.instagram.com/thedatadeli/
00:00 7 Factors of a Great Real Estate Market
02:47 Why Invest Out-of-State?
03:58 Developing Your Investing Strategy
04:42 Cash Flow vs. Appreciation
05:58 1. Rent Growth
06:49 2. Rent-to-Income Ratio
07:57 3. Income Growth
08:46 4. RTP Ratio
10:32 5. Appreciation
11:22 6. Population Growth
11:47 7. Tax Rates13:34 Ready to Invest Out-of-State?
Originally published at https://www.youtube.com/watch?v=hZY1GXtGy94
