How to Determine a Good Real Estate Market From a Bad One
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The video discusses how to determine if a market is good for owning rental properties. The speaker suggests four main criteria to consider: positive cash flow, investing in safe areas, appreciation, and local government and municipality laws. They emphasize the importance of investing locally if possible, but if not, to look nationally or in other states or cities. The speaker stresses the importance of having a fair relationship with tenants and treating them fairly in return.
The speaker also discusses the stability of the market, the standard of living, and local government and municipality laws. They recommend St. Louis as a great rental market that fits all four categories. The speaker then discusses the importance of reasonable expenses when owning rental properties, as high expenses can negatively impact cash flow. They suggest using a basic formula to determine potential cash flow and recommend aiming for a net cash flow of $200 to $400 per month.
The speaker emphasizes the differences in local government and municipality laws between St. Louis County and St. Charles County. They own properties in both counties and benefit from the different laws in each. The speaker then discusses the growth of the St. Louis market, which is steady and sustainable, with house values increasing by about 12% in the last year.
The speaker emphasizes the importance of stability and affordability when investing in rental properties. They suggest that St. Louis is a great market for these reasons, as it is affordable and has a steady growth rate. The speaker also discusses the importance of cash flow and suggests using the one percent rule to determine potential cash flow. They recommend looking at markets in the midwest, south, or southeast that meet the criteria discussed in the video. The speaker concludes by encouraging viewers to hit the like button and subscribe to their channel for more free quality content.
The video discusses how to determine if a market is good for owning rental properties. The speaker s