Let’s talk about analyzing a market. So, you’re interested in a specific market, and think you can find deals in that market, but you are not completely sure where to start. 

You need to do your research!

To maximize your productivity and ensure you can replicate what you do in this market in other markets, it’s smart to create a system. 

Lucky for you, I specialize in creating systems and scaling and I am going to teach you exactly how to do this. 

The ultimate goal of a market analysis is to gather information about a market in order to determine whether and where to invest within that market. Since not all markets are created equally, and many factors vary from market to market, you have to analyze each one individually. 

First, look into the population. 

Is the population growing? 

If so, that is a good indicator that this will make a good rental market. If the population is declining, you could run out of tenants down the road. 

How old is the population?

If it is predominantly old people, you may run out of tenants when they die. 

What is the average income in the market? You need to ensure your population can afford the rent and home values in your market. 

Next, look at the Industry.

Is there strong industry? 

Is the industry diverse? 

You don’t want to invest in a market that only has one factory because what happens if that factory goes out of business? You’re either going to have no tenants because they are all going to move away, or you’re going to have tenants who are not paying rent because they lost their jobs. 

Bottom line: You need to know that you’re going to have tenants for the long term. Even if you plan to flip a property, you need to have confidence that you’re going to be able to sell it after the renovations are done. Having a growing population with plenty of young people and strong and diverse industry should alleviate your concerns about renting or selling properties in your market.

https://www.youtube.com/watch?v=E-RYL24oU4w  

Next, look at the value of property in your market. 

What is the median sale price in that market? 

How long it takes to sell properties in your market?

What is the average appreciation rate in the market?

All of these factors play a significant role in your return of investment and you need to understand and consider them in order to make a wise purchase.

Lastly, look at the quality of life. 

How is the climate?
How is the cost of living? 

Is there any noise pollution? Think: airports, train tracks, large factories, etc. 

How is the walkability?

Is there dining and entertainment? 

Do people travel to this area? (this is critical if you are planning to use a short-term rental strategy). 

Is it a safe area?
How are the schools?

For help with this and creating other systems that will help you kickstart your career as an investor, check out my Real Estate Investor Course!