Once you decide to invest outside your local area, the possibilities are limitless, which can be both exhilarating and overwhelming. Rather than diving down endless research rabbit holes, start by assessing your personal investing goals. Here are 10 key factors to help narrow down your market choices:
- Job Growth: Indicates a healthy economy, attracting businesses and residents, driving demand for housing.
- Population Growth: Long-term upward trends supported by job growth are essential.
- Job Diversity: A variety of industries support economic stability, making an area less vulnerable to industry-specific downturns.
- Landlord/Tenant Laws: Favorable laws are crucial for profitability; insight from local property managers is valuable.
- Taxes: State income and property taxes impact your operating budget and overall returns.
- Geographical Features: Physical barriers can limit development, driving up property values.
- Cost of Living: Areas with a lower cost of living relative to median income are likely to grow.
- Local News: Track news for insights on new companies, local developments, and economic health.
- Local Government: Strong leadership supports economic initiatives and attracts businesses.
- Unfair Advantage: Local connections or personal history with an area can provide valuable insights.
Leveraging These Factors with BlueDoor Equity
As a passive investor with BlueDoor Equity, you’ll benefit from our expertise in selecting strong sponsors and markets. We use these 10 factors, along with your personal criteria and goals, to conduct thorough research and bring you the best investment opportunities.