Part 2: The Final 5 Factors That Make a Market Strong

In Part 1, I covered five key factors for evaluating a market. Here are five more that matter just as much:

1. Crime Rate: Keep it under 500 on the national index, generally declining, and low or no violent crimes. Safety matters for tenant demand and property values.
2. Regulatory Environment: Favor business- and landlord-friendly states for investor-friendly policies.
3. Rent-to-Income Ratio: Ideally 25% or less. Affordability = room for sustainable rent growth and high collection rate/low economic vacancy.
4. Rent-to-Own Ratio: 50%+ renters suggests strong demand for multifamily housing.
5. Supply & Demand: Look for low vacancy and high absorption rates. Too much supply = rent stagnation/decline and low occupancy rates.

Get these 10 factors right, and your deals will perform better from day one.

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