A successful Wake Forest rental real estate investor is one who knows how to collect and use relevant data. While you can use data in a lot of different ways, most investors use it to compare real estate markets & properties. The right data can help you figure out the hot real estate markets and profitable rental houses. Using effective data analysis, your investing strategy will help you achieve your goals. It is very important that you know how you can leverage data to increase profits.
Data is more effective when used systematically. Many successful rental real estate investors use the Automated Valuation Method to estimate current home values. Zillow can create algorithms that give you a calculation of the “suggested price” of different properties. However, you do not need to be a real estate giant to leverage the data they offer to the public. With platforms like Trulia and Realtor, you can get data about individual property histories as well as neighborhood trends and more. There are even tools like mortgage payment calculators to allow more accurate number-crunching.
Another good way to gather and use existing data is to study foreclosure reports. Not only will you be able to get useful information about property values in a specific area or for an individual house, but you can also look at foreclosure reports for market patterns. Sudden increases in the number of foreclosures often indicate economic trouble in an area.
Foreclosure reports are also helpful in identifying growing markets just as they are beginning to emerge, which could lead to accelerated appreciation as the market strengthens. It is important to keep in mind, though, that foreclosure reports typically give you a picture of past market conditions.Even with its valuable information, it won’t always be your best source of up-to-date market data.
With these limitations of foreclosure reports, it will be to your advantage to look at a variety of sources during your data collection process. Along with government sources like the U.S. Census Bureau and U.S. Department of Labor, you should also keep a close eye on local newspapers, county registers, and similar data sources. When you consider all the data from these different sources, you can have a better picture of your market.
When you have all that data, you can now use it to streamline your property search to a specific area or type. Otherwise, you would just waste time looking for properties you might not profit from or are in markets that are in decline.
When you use data collected from websites, reports, the MLS, and local sources, you can be more efficient in identifying potential properties to look into closely. This strategy lets you use data as a tactical tool to move your investing ventures the way big investors do. With all this, you may realize that you can indeed achieve more by leveraging data the right way.
These activities can take up a lot of your time. However, Real Property Management Raleigh offers a free market rent analysis to get you started on your investment journey. Contact us online or call us at 919-481-0008.
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