How to Choose the Best Real Estate Market for Your Investing?

Not sure where to start investing? Well, we all face this question in our real estate journey. And there are a number of ways that you can go about it. There is the calculated method, the point and shoot method, and the method where you listen to everyone and their brother about where the most profitable market is. Or you can choose your investment properties using a combination of all three. You’ll never make a perfect investment, but you can make a really great one pretty easily.


You should begin your journey of investing with a little dreaming and exploration. What are you interest in? What markets entice you? Who do you know that you identify with and think you would like to emulate as you move forward into investing? Are you interested in luxury apartments? B and C class apartments? Fixer uppers? What do you want your tenants to say about your properties? These thoughts will likely lead you into a “branding” phase of your investing, and answering these questions, as well as hundreds of others will help you narrow down where you want to start investing and what your end goal should be.


In the definition phase of planning, you should identify what you want your real estate to do for you. What are your long and short term investing goals, and how can you fit investing into your current lifestyle or the lifestyle you plan to transition to? Is investing your new day job or is it your retirement plan? Understand your goals and timelines and this will help you better choose a city, a community, and a property that will serve you.


Research, research, research. Do your homework. The key to real estate is anticipating the future needs of a community. And you will only know this through thorough research. You want to choose cities that are rapidly expanding, and that are in need of the kind of housing that you are looking to offer. Anticipate the needs and the future trajectory of a city and you will likely have yourself a winning piece of real estate. Also know that you will probably make a hundred (or maybe two hundred) offers before you find the right one. But if you have researched a specific place enough to know without a doubt that you want to invest there, then you won’t be as discouraged when the deal falls through. And as you continue to research and explore your options, you will only build on your knowledge and know-how of a city.

If you’re looking to get into multi-family real estate investing, head to our contact page and leave your information. We are a syndicated, multi-family real estate company who deals with B & C Class properties and we are always looking for other investors who are looking to diversify their portfolio. Here are Magnolia Capital Properties, we work with one investors client, one property at a time!

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