A successful Logan Circle 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. When you have the right data, it becomes easier for you to find profitable rental houses in the popular real estate markets in the country. 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 can be used effectively by using it systematically. Many successful rental real estate investors use the Automated Valuation Method to estimate current home values. Algorithms created by Zillow calculates the “suggested price” of properties in an area. But you do not have to be a real estate giant for you to be able to leverage the data they offer to the public. Trulia and Realtor are platforms that create and share data such as individual property histories and neighborhood trends. There are even tools like mortgage payment calculators to allow more accurate number-crunching.
Another way to use existing data in real estate investing is by studying foreclosure reports. You not only get information about property values or even individual houses, but you can also see market patterns from foreclosure reports. If recent reports show a sudden increase in foreclosures, that could mean brewing economic trouble in that area.
Foreclosure reports also help investors identify growing markets just as they are starting out, which can lead to accelerated appreciation as the market strengthens. You must still remember, though, that foreclosure reports are more reflective of past market conditions instead of current ones. Even if it gives valuable information, it may not always be the best option for up-to-date market data.
Knowing this limitation of foreclosure reports, it is important that your data collection process gathers information from varied sources. 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. Individually, these sources give you a piece of the picture, which you can put together to see the bigger image.
When you have all that data, you can now use it to streamline your property search to a specific area or type. Unless you do that, you could end up looking for properties that will not give you the profits you desire or are in declining markets.
Information from websites, reports, the MLS, and local sources can help you shortlist properties for further evaluation. When you use data as a tactical tool, you can advance your investing ventures similarly to how big investors do. After all of this, you would see how leveraging data can help you achieve even more.
These activities can take up a lot of your time. However, Real Property Management DC Metro offers a free market rent analysis to get you started on your investment journey. Contact us online or call us at 202-269-0303.
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