What criteria exist for real estate investors to find the right market?
Most investors already know whatever location and real estate market they invest in must match to their goals whether they aim for fast cash or cash flow. In analyzing any real estate market and potential investments many metrics apply and today we’ll look 3 important criteria to start the process.
Note that these three criteria interrelate and even influence one another. Let’s get started.
Places and real estate markets with a diversified economy hold much more promise than those whose economy depends on one or two industries. In case major changes affect one industry, a diversified economy helps to offset them.
Real estate markets with diversified economic engines bring along the second criteria, job growth which also implies population growth. Markets with both job and population growth promise excellent income to real estate investors.
However, the third criteria is an absolute necessity for real estate investors, even for those who are real estate developers. I am talking about a real estate market’s rentals landscape. It is often different in different states and cities. Rental demand, the type of rentals, rents, local and state landlord/tenant laws make a world of difference in profitable real estate investing. Make sure you know them for your market.