Data becomes more valuable when used systematically. Many successful rental real estate investors use the Automated Valuation Method to estimate current home values. Zillow calculates the “suggested price” of properties by creating algorithms. But you don’t necessarily have to be a real estate giant to take advantage of the data they collect. You can use platforms like Trulia and Realtor to gather data like individual property histories and neighborhood trends. You can also use tools like mortgage payment calculators to speed up number-crunching.
You can also use data 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. If a recent report shows a sudden increase in foreclosures, it could signal economic trouble in that area.
Foreclosure reports can also show you where the growing markets are so you can maximize the potential accelerated appreciation in these areas as the market strengthens. However, you must bear in mind that foreclosure reports often show what happened in the past and not always the current market conditions. While this type of information is valuable, it might not be the best source of current market data.
With the limitations of foreclosure reports, it is important that you have a wide range of sources in your data collection process to refer to. 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. As a whole, data from these sources can give you a more complete picture of the market situation.
When you have all those data, you can then narrow down your search to specific parameters of your choice. Otherwise, you could end up wasting time searching for properties that will not give solid profits or are in declining markets.
With the information you can gather from websites, reports, the MLS, and local sources, identifying properties for further analysis can become more efficient. This strategy uses data as a tactical tool so you can propel your investing ventures forward the way big investors do. You will soon realize that leveraging data will help you achieve even more things.
If all that would seem to take too much of your time, Real Property Management Seacoast New Hampshire offers a free market rent analysis to get you started on your investment journey. Contact us online or call us at 603-343-2202.