How To Do Rental Market Analysis on Your Investment Property – Video
Kathy Fettke: Even though it’s a great time to be a landlord, you can’t just go out and buy any piece of rental property and expect that it’s going to do well. It doesn’t work that way. You’ve got to time the markets right and you got to be in the right markets at the right time. Where are the best markets today? Well, it’s the markets that have job growth, first and foremost. You’ve got to follow the jobs. That’s what we do at RealWealth, find out where those jobs are growing. I’m going to tell you some really great places in a minute.
Population growth, we want to be in areas where those jobs are attracting people because we need people to rent our homes and they need to have jobs. Then, affordability. San Francisco has job growth and population growth, but they do not have affordability. Not a great place to be investing in real estate right now, unless you love negative cash flow.
We want to be in areas that have city revitalization, cities that are investing in themselves.We’re finding some of these cities have invested billions of dollars in their revitalization, that has a huge impact on real estate. We’re following that.
We really want to pay attention to residential permits, as I said before because, we’ve got to be careful about builders overbuilding and taking us from a seller’s market to a buyer’s market.
Finally, judicial states, another great opportunity for real estate investors today. As I said earlier, there’s still a plethora of foreclosures in those judicial states. You can feel as if you’re going back to 2009, 2010 and lock in these low home prices with low-interest rates and high cash flow and then enjoy that cash flow while you watch the value of your property increase every year. It’s a great thing.
Of course, you have got to pay attention to demographics. Where are the Millennials going to be living and where are they going to stay and raise their families. If we can figure that out, that will be the key to our wealth in our golden years. Speaking of golden years, we want to follow the baby boomers as well. Where are they retiring? These two huge generations are truly going to drive the future of housing and our economy. We’ve got to pay attention to where they’re living, where they’re renting, and where they will be buying.