4 Attributes of a Good Market

When investigating a new market to invest in, use the information below to assess if the city you’re looking at will be successful for you.

  1. Population over a million and good growth rate. This ensures that there are plenty of available houses (with a 3% foreclosure rate, there are about 3000 houses at auction each month), renters to choose from and that the city is growing rather than stagnate or losing population. Good markets didn’t drop during the 2008 crash…
  2. Cheap Houses. Make sure you get at least the 1% rule meaning $1000 of rent for each $100k of purchase. This should also ensure youre getting about 8% return on your money.
  3. Business Friendly and Credit worthy State. Look at how easy it is to set up an LLC, the costs of maintaining the business and the cost and timing of evicting a tenant. Also look for states and cities that have a good credit rating which ensures that they will be pouring money into revitalization which increases jobs, growth, appreciation and rents.
  4. Jobs. Look for cities where there is a good mix of manufacturing, warehousing and overall good job market with low unemployment. it also ensures that taxes won’t go up in the event that a city starts going bankrupt. (http://www.zerohedge.com/news/2017-10-05/these-two-charts-depict-which-cities-will-file-bankruptcy-next)

Once you’ve done your due diligence on the market, next you should look assess the company you’re going to work with…