By Tim Watson
The author has permitted the reprinting and redistribution of this article.
Too many of the investors we talk with start by choosing a market. Unfortunately, this market is typically the market they live in. Sure on the surface this makes sense, investing in the market you live in gives you a sense of control however, for many of you that may not hold true. First, Real Estate Investing should be about the financial statement, not the property. Many people who invest in their Back Yard, justify poor returns because they know the area.
Let’s take a look at two different markets across the country; Tulsa, Oklahoma and where I live, Denver, CO.
Population 382,000 567,000
Median Home Price $83,600 $165,800
Section 8 Rent 3 bed $849 $1,291
Inventory under $100K 651 182
While I live in Denver, I would much rather invest in Tulsa for the following reasons.
1. Inventory, with 651 properties under $100k I can be more selective on the area of town and condition of the property.
2. Median House Price, With a median under $100K I can find more properties that cash flow well.
3. Rents, The ratio between the rent and property prices is significantly better in Tulsa.
4. In Tulsa there are 44 properties under $20k…I can do alot of fix and flips with those prices.
5. According to the Office of Federal Housing and Economic Oversight, Tulsa has continued to appreciate over the last year.
So when you are looking at investing in Real Estate and you are looking at the numbers, make sure the markets you invest in make financial sense. By doing a little homework up front the chances are that you will find dozens of markets across the country that perform better than your hometown.
Tim Watson Click here to get our Free report on how to find wholesale properties for pennies on the dollar httpwww.pmwholesaledeals.com Visit our Blog today for more great content and cash flow properties for sale httppropertymaverick.wordpress.com
If you would like to take advantage of the market and learn how to invest in real estate and you are local to the Dallas Fort Worth area, I know a really great teacher and mentor here in Arlington Texas. Please take a look at his web site: DennisJHenson.com, Dennis has a great Mentoring and training program, I know because I am one of his former students. I learned a lot from his one on one teaching technique. – Michael Harman 817-457-7572 firstname.lastname@example.org>