How to Select the Right Sub-Markets

ROI Wealth Watch

In the previous episode of the ROI Wealth Watch podcast, Jared and Tom explained how you can identify some of the best, broad real estate markets across the country. On today’s episode, the guys are breaking things down even further and explaining how to identify and select the right sub-markets for your investment and ROI goals.

They explain how to properly evaluate key metrics such as crime rate by zip code and how these zip code demographics can sometimes skew the crime rate statistics. They also explain the differences between an A-grade, B-grade, and C-grade property and neighborhood and why it’s important to always verify these grades before deciding to invest.

Rent is a barometer of what you can expect from your tenants.” - Jared Garfield

In This Episode of ROI Wealth Watch:

• Key metrics you should review when investing in a real estate sub-market
• Understanding investment property price, median rental price, and median incomes and how they affect a neighborhood’s grade
• Understanding ownership vacancy, public schools and colleges, and crime rates and how they affect a neighborhood’s grade
• When to realistically expect the 1% rule to apply
• The correlation between high income and high owner occupancy rates
• Comparing the rental markets with the home ownership markets
• Why high vacancy rates aren’t necessarily a market red flag
• How sub-market education rates can affect your investment

Wealth Watch Words of Wisdom:

1. Property price is the biggest indicator of area grade.
2. Cash is King: Rental prices $800 or more will generally help attract better tenants.
3. Commercial areas can help you identify the true nature of the area’s grade.
4. Owner occupancy strongly correlates to pride of ownership.
5. Trust, but verify. Take the time to learn and properly compare areas and neighborhoods to verify area grades.

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Help Others Buy Real Estate in the Right Markets at the Right Times!

Thanks for tuning into today’s episode of the ROI Wealth Watch podcast with Jared Garfield - your resource for learning to buy real estate in the right markets at the right times. If you enjoyed this episode, head over to iTunes to leave us a rating and review. Subscribe to the show so you never miss an episode, and visit our website to grab your free gifts!

And, if you’re looking for the best turnkey rental properties to invest and renovate to maximize your real estate portfolio, visit the Rich Life Real Estate website to view turnkey rental opportunities or speak with an investment advisor for more information.