Our out-of-state real estate investing course launched today! I’m so excited to present Remote Rental Riches – a course all about getting out-of-state rental properties to jumpstart your journey towards financial freedom.
✅ Check out our out-of-state real estate investing course Remote Rental Riches – https://courses.digitalnomadquest.com/p/remote-rental-richeswhich teaches you step-by-step how to acquire your first rental property!
This course includes:
– 60+ video modules ($999 value, price WILL increase over time)
– 14+ worksheets, quizzes, and homework assignments ($150 value), including:
– Our Exclusive Property Analysis Calculator
– Terms and Definitions Worksheets
– Scripts – Exactly what to say to find your dream team
– Checklists – To make sure you’ve tackled every single item in the process
– Exclusive case study footage of us doing the process with you! ($299 value)
– Watch us call and vet our dream teams, conduct property walkthroughs, and more.
– Our case studies reveal 2 of our target markets!
– Continuous updates to the course at no additional cost. ($199 value)
– We are committed to adding more BONUS course content and interviews with investors over time. (We love all things real estate and enjoy adding content!)
– Depending on interest, we may also open a private FB group in the future to bring investors together and personally answer questions. You will get free access to this at no additional cost.
You’ll learn key fundamentals on how the entire process works, including how to:
– Research and choose your target market
– Find and analyze rental property deals
– Build a boots on the ground team including your agent and property manager
– Finance your properties
And you’ll understand:
– The entire escrow and loan process
– Common key terms in the real estate industry
– Big-ticket repair items to look out for
– Future exit strategies
– As well as how to continuously repeat the process to achieve financial freedom!
I hope you enjoy the course, and please don’t hesitate to ask any questions you may have.
How to Research Out-of-State Markets to Invest In (Long Distance Real Estate Investing 101)
Transcription
Below is a transcription of the podcast. This transcription was taken from Otter.ai so it might not be completely accurate:
Sharon Tseung 0:00
Hey guys, it’s Sharon from digital nomad quest. And today we’re gonna talk about how to research an out of state real estate market. Now, if you guys are new to the channel, welcome, I’m all about teaching y’all how to build passive income, become financially free and design your best life. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. So when it comes to out of state real estate investing, it is very crucial to pick your market. And in order to pick your market, you’re going to need to look at a few different factors which I’m going to talk about today. A lot of people haven’t asked me this question. So I’m excited to cover this topic. So in this episode, I’m going to talk about these crucial factors. But I’m also going to show you essentially how to research these factors with different resources. So let’s just get right into it. First of all, you need to consider supply and demand. It’s basic economics that ideally you want supply to be low and demand to be high. So when I talk about supply, I’m talking about the matter of rental properties available. And when I’m talking about demand, I’m talking about the amount of renters that are going to be renting out these properties. So some questions you might want to ask are how many rental properties are available in the market, what’s the vacancy rate, as well as how long it takes to fill in these properties with renters. So normally, you can get information like this by talking to people in the market, for example, property managers, I’ve been able to speak with property managers about vacancy rates, and how long it’ll take for them to market the property and get some tenants in. And that really reveals a lot of information. Because if it only takes like two weeks or so to get renters, and you know that there are a lot of renters that are looking for properties. You can also look on sites like Craigslist, and Zillow to understand how many properties are on the market that are available for rent and how long they have been on the market. Because if they’ve been on market for a long time, that could possibly mean that demand is low. Number two, you want to look at population growth. So obviously you’re looking for a place with people and it’s a good sign if the population is growing. If you look at it from a supply and demand perspective, it just means that there’s probably more demand because there’s probably going to be more renters, people are going to be your customers. You don’t have to invest in a city that’s crazy popular, but you probably rather invest in a place that people know that the population is growing rather than a place that you know is out in the middle of nowhere that nobody knows nobody’s heard of. and not many people are there, you want to make sure that there is no trouble finding renters, it also means that appreciation potential is higher, because there’s probably more demand from a buying perspective. So even though I like to focus on cash flow appreciation is really important and can actually be most of your profits. So for example, my property in Antioch has doubled in value. And that has actually overpowered the amount of cash flow that gone from it, which is actually a lot like I’ve profited multiple, five figures from cash flow, but appreciation has actually been six figures. But if I sold this property because of appreciation, I would be profiting six figures, even though I could do that, I’m just gonna hold it because I like cash flow. So with population growth, you’re essentially looking for demand from a renters perspective. But also from a buyer’s perspective, if you are looking for appreciation potential. Number three is job growth. So job growth is crucial, because obviously, if there are more jobs to fill, there’s going to be more people coming in to fill jobs, which will drive residency number four increase in housing prices. So it’s good to look at historical data on housing prices, and how much they’ve increased. Because if there is a lot of appreciation on those home values, it could indicate good factors like job growth and population growth, etc. Number five, you want to make sure that crime rates aren’t too high. So I’ll show you how to check this in a minute. But you’ll want to make sure that there’s not too much crime in your target market. So first of all, high crime rates are going to affect your housing prices negatively. And secondly, even if it looks like there’s cash flow potential, you’ll make a lot of money. If you’re buying properties in high crime rate neighborhood, there’s chance that it’s going to be a lot of work, there’s going to be a lot of repairs, there might be property damage, you know, different crimes. And it could be even worse, there could be more violent crimes, like I’ve heard of things where people get killed in these properties. And there can be a lot of trouble, right. So you don’t want to invest in places that could be kind of unsafe. So I’m going to show you how to do this research right now. So city hyphen data.com, is actually a really great place to look up a lot of these stats. So for example, if you’re going to look up some place like Orlando, Florida, let’s go into here, you will be able to understand population growth and everything like that. So you can see population in 2017 versus 2000. And you can see there’s a plus 50%, which is really good. And you can also look at median household incomes and stuff like that, you can also look at median home values. So as you can see, in 2017, you can see the median house value at $232,600. And it was 97,400 in 2000. So a lot of this data is going to really help you understand in comparison with other markets how it’s performing. So you might want to use this tool to look into different neighborhoods and see what you think. You know, judging from the stats with Orlando, these numbers are actually pretty decent. The increase in median home value, the increase in population is really good as well. And there’s even more data below we can go also into the crime rates. So I typically like to look for crime. index that’s under 500. And it actually meets that criteria afterward. In 2017, it’s lower than 500. Now, so stuff like this is really helpful. So go ahead and look, check out city data.com. You can also look at Department of numbers.com slash employment slash metros to see the different areas and the job growth by metropolitan area. So with Orlando 6% is actually really good too. So you might want to consider this market and, you know, keep researching and looking at different markets and looking at these different levers to see if it’s a good idea for you. Alright, so I hope that screen share was helpful for you, it actually is very crucial when you are looking at different target markets. There’s many different sites that will help you in this journey. So make sure to go do that research around the different factors I talked about. So let’s keep going with those different factors. Number six, you want to look out for natural disasters, I really try not to invest in areas that are prone to natural disasters, obviously, everywhere in the United States, they are prone to natural disasters, but maybe some are more common than others. It really just puts you in a lot of risk, like you could get your home completely wiped out by disasters. So for example, if there are areas that are prone to hurricanes, tornadoes, things like that, you might not want to invest there because it really could put you at risk. So make sure to do that research on Google. Number seven, you want to look at other population drivers and future development. So when I say population drivers, I mean things like board stadiums, tourist attractions, universities, universities can be a big one, because those students are usually looking to rent airports and things like that. It’s good to look out for these things that will make people come to that city. It’s also a good sign if you know that city has some sort of persona or something that makes people want to visit it. And another thing I think about is in terms of exit strategies. So with buy and hold properties, yeah, you want to keep it for a long time. But if anything goes south, you want to make sure you can sell it or you know, Airbnb it out. So this is one thing that I’ve thought of a lot that like, you know, in the future, I’d want to invest in more areas that are maybe more touristy, because they could be good for Airbnb, and actually, Airbnb could cashflow you even more possibly than just getting a long term lease. But anyway, this video isn’t really about that. But it’s really good to look for different exit strategies to make sure you’re safe. And I discussed Airbnb because if you’re talking about population drivers, you know Airbnb is usually good for places that are more touristy and stuff like that. So if the city you are researching has that potential, it has more ways that you can actually make money from it. So I also say future development because for example, if Google were creating an office in your target market in the future, that’s going to open up more jobs, it’s going to have more demand, so it’s going to make housing prices go up as well as rental prices go up. So make sure to look out for population drivers and future developments for where you are investing. Number eight is cashflow ability. So the last factor I really want to mention is you obviously want to make sure that your property has potential to make money from it when it comes to renting it out to tenants. So I feel like this process of analyzing properties and making sure they can cash flow can happen simultaneously as you are looking for these different factors in your target market because this is part of the research when it comes to figuring out if that target market is good for you to invest in. And I really talk about this more in a previous video where I talk about how to analyze, buy and hold properties can I even have a spreadsheet linked in that video with this spreadsheet, you’re going to be able to input numbers for example, your purchase price, how much you’re going to get alone for all the different expenses including repairs, they can see property management fees, taxes, insurance, all that it’s all covered in this spreadsheet and it’s really useful so make sure to go check it out. Also link it below this part of the process is very crucial. As long as this video you want to make sure you’re setting both of these in order to understand the steps when it comes to investing in your first out of state real estate property. So I hope you guys enjoyed this episode. These are some of the main factors that I look at and you might probably think of more as you’re researching but I feel like if you research a lot of these things that I talked about, you’re going to be in pretty good shape when you invest in your first property. If you liked this video, make sure to smash the like button as well as comment below and let me know which tip actually helped you the most Make sure to subscribe hit the bell button to be notified on my latest videos and I’ll see you guys in the next one.Transcribed by https://otter.ai
Hey guys, it’s Sharon from digital nomad quest. And today we’re gonna talk about how to research an out of state real estate market. Now, if you guys are new to the channel, welcome, I’m all about teaching y’all how to build passive income, become financially free and design your best life. So if you guys are interested in that, make sure to subscribe and hit the bell button to be notified of my latest videos. So when it comes to out of state real estate investing, it is very crucial to pick your market. And in order to pick your market, you’re going to need to look at a few different factors which I’m going to talk about today. A lot of people haven’t asked me this question. So I’m excited to cover this topic. So in this episode, I’m going to talk about these crucial factors. But I’m also going to show you essentially how to research these factors with different resources. So let’s just get right into it. First of all, you need to consider supply and demand. It’s basic economics that ideally you want supply to be low and demand to be high. So when I talk about supply, I’m talking about the matter of rental properties available. And when I’m talking about demand, I’m talking about the amount of renters that are going to be renting out these properties. So some questions you might want to ask are how many rental properties are available in the market, what’s the vacancy rate, as well as how long it takes to fill in these properties with renters. So normally, you can get information like this by talking to people in the market, for example, property managers, I’ve been able to speak with property managers about vacancy rates, and how long it’ll take for them to market the property and get some tenants in. And that really reveals a lot of information. Because if it only takes like two weeks or so to get renters, and you know that there are a lot of renters that are looking for properties. You can also look on sites like Craigslist, and Zillow to understand how many properties are on the market that are available for rent and how long they have been on the market. Because if they’ve been on market for a long time, that could possibly mean that demand is low. Number two, you want to look at population growth. So obviously you’re looking for a place with people and it’s a good sign if the population is growing. If you look at it from a supply and demand perspective, it just means that there’s probably more demand because there’s probably going to be more renters, people are going to be your customers. You don’t have to invest in a city that’s crazy popular, but you probably rather invest in a place that people know that the population is growing rather than a place that you know is out in the middle of nowhere that nobody knows nobody’s heard of. and not many people are there, you want to make sure that there is no trouble finding renters, it also means that appreciation potential is higher, because there’s probably more demand from a buying perspective. So even though I like to focus on cash flow appreciation is really important and can actually be most of your profits. So for example, my property in Antioch has doubled in value. And that has actually overpowered the amount of cash flow that gone from it, which is actually a lot like I’ve profited multiple, five figures from cash flow, but appreciation has actually been six figures. But if I sold this property because of appreciation, I would be profiting six figures, even though I could do that, I’m just gonna hold it because I like cash flow. So with population growth, you’re essentially looking for demand from a renters perspective. But also from a buyer’s perspective, if you are looking for appreciation potential. Number three is job growth. So job growth is crucial, because obviously, if there are more jobs to fill, there’s going to be more people coming in to fill jobs, which will drive residency number four increase in housing prices. So it’s good to look at historical data on housing prices, and how much they’ve increased. Because if there is a lot of appreciation on those home values, it could indicate good factors like job growth and population growth, etc. Number five, you want to make sure that crime rates aren’t too high. So I’ll show you how to check this in a minute. But you’ll want to make sure that there’s not too much crime in your target market. So first of all, high crime rates are going to affect your housing prices negatively. And secondly, even if it looks like there’s cash flow potential, you’ll make a lot of money. If you’re buying properties in high crime rate neighborhood, there’s chance that it’s going to be a lot of work, there’s going to be a lot of repairs, there might be property damage, you know, different crimes. And it could be even worse, there could be more violent crimes, like I’ve heard of things where people get killed in these properties. And there can be a lot of trouble, right. So you don’t want to invest in places that could be kind of unsafe. So I’m going to show you how to do this research right now. So city hyphen data.com, is actually a really great place to look up a lot of these stats. So for example, if you’re going to look up some place like Orlando, Florida, let’s go into here, you will be able to understand population growth and everything like that. So you can see population in 2017 versus 2000. And you can see there’s a plus 50%, which is really good. And you can also look at median household incomes and stuff like that, you can also look at median home values. So as you can see, in 2017, you can see the median house value at $232,600. And it was 97,400 in 2000. So a lot of this data is going to really help you understand in comparison with other markets how it’s performing. So you might want to use this tool to look into different neighborhoods and see what you think. You know, judging from the stats with Orlando, these numbers are actually pretty decent. The increase in median home value, the increase in population is really good as well. And there’s even more data below we can go also into the crime rates. So I typically like to look for crime. index that’s under 500. And it actually meets that criteria afterward. In 2017, it’s lower than 500. Now, so stuff like this is really helpful. So go ahead and look, check out city data.com. You can also look at Department of numbers.com slash employment slash metros to see the different areas and the job growth by metropolitan area. So with Orlando 6% is actually really good too. So you might want to consider this market and, you know, keep researching and looking at different markets and looking at these different levers to see if it’s a good idea for you. Alright, so I hope that screen share was helpful for you, it actually is very crucial when you are looking at different target markets. There’s many different sites that will help you in this journey. So make sure to go do that research around the different factors I talked about. So let’s keep going with those different factors. Number six, you want to look out for natural disasters, I really try not to invest in areas that are prone to natural disasters, obviously, everywhere in the United States, they are prone to natural disasters, but maybe some are more common than others. It really just puts you in a lot of risk, like you could get your home completely wiped out by disasters. So for example, if there are areas that are prone to hurricanes, tornadoes, things like that, you might not want to invest there because it really could put you at risk. So make sure to do that research on Google. Number seven, you want to look at other population drivers and future development. So when I say population drivers, I mean things like board stadiums, tourist attractions, universities, universities can be a big one, because those students are usually looking to rent airports and things like that. It’s good to look out for these things that will make people come to that city. It’s also a good sign if you know that city has some sort of persona or something that makes people want to visit it. And another thing I think about is in terms of exit strategies. So with buy and hold properties, yeah, you want to keep it for a long time. But if anything goes south, you want to make sure you can sell it or you know, Airbnb it out. So this is one thing that I’ve thought of a lot that like, you know, in the future, I’d want to invest in more areas that are maybe more touristy, because they could be good for Airbnb, and actually, Airbnb could cashflow you even more possibly than just getting a long term lease. But anyway, this video isn’t really about that. But it’s really good to look for different exit strategies to make sure you’re safe. And I discussed Airbnb because if you’re talking about population drivers, you know Airbnb is usually good for places that are more touristy and stuff like that. So if the city you are researching has that potential, it has more ways that you can actually make money from it. So I also say future development because for example, if Google were creating an office in your target market in the future, that’s going to open up more jobs, it’s going to have more demand, so it’s going to make housing prices go up as well as rental prices go up. So make sure to look out for population drivers and future developments for where you are investing. Number eight is cashflow ability. So the last factor I really want to mention is you obviously want to make sure that your property has potential to make money from it when it comes to renting it out to tenants. So I feel like this process of analyzing properties and making sure they can cash flow can happen simultaneously as you are looking for these different factors in your target market because this is part of the research when it comes to figuring out if that target market is good for you to invest in. And I really talk about this more in a previous video where I talk about how to analyze, buy and hold properties can I even have a spreadsheet linked in that video with this spreadsheet, you’re going to be able to input numbers for example, your purchase price, how much you’re going to get alone for all the different expenses including repairs, they can see property management fees, taxes, insurance, all that it’s all covered in this spreadsheet and it’s really useful so make sure to go check it out. Also link it below this part of the process is very crucial. As long as this video you want to make sure you’re setting both of these in order to understand the steps when it comes to investing in your first out of state real estate property. So I hope you guys enjoyed this episode. These are some of the main factors that I look at and you might probably think of more as you’re researching but I feel like if you research a lot of these things that I talked about, you’re going to be in pretty good shape when you invest in your first property. If you liked this video, make sure to smash the like button as well as comment below and let me know which tip actually helped you the most Make sure to subscribe hit the bell button to be notified on my latest videos and I’ll see you guys in the next one.Transcribed by https://otter.ai
