<aside> 💡 When buying your property, it is best to look for markets with favorable buying conditions but generally within favorable markets tend to be seller’s markets. Real estate is local and location is the principal determinant of value. We can group them into two categories, the overall real estate market analysis and the neighborhood where you are buying or investing.

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Real Estate Market Analysis

Which Metro do I pick?

<aside> 💡 When starting out, it is recommended not to pick more than 2 markets to really focus on. Spreading your focus dilutes your ability to find deals.

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In order of easiness and operations:

1. A city within a 1.5 hour drive
2. A city where you know someone local that can check in on a property for you (usually the Subtle Asian Real Estate community can help you here)
3. Everywhere else in the country

Important Metrics for MSA

Demographics

• What is the Population?

  You’re going to want a city with more than 100k people. It will make it easier for you to get loans and have a strong economy + tenant base.

• Is it a primary market or secondary/tertiary market?

  NY/SF/LA have been underperforming smaller metros like Phoenix and Austin for a while. There are bigger returns to be had by leaving the coasts, the South & South East sunbelt is currently dominating returns as of the last few years

  

• Is the Population Growing?

  This tells you if people want to move to your city, ideally positive

• What is the racial distribution?

  The more diverse, the more tenants you can market to and the more “hip” a metro tends to be.

Income