Knowing how to collect and use relevant data is one requirement to be a successful Palm Harbor rental real estate investor. While you can use data in a lot of different ways, most investors use it to compare real estate markets & properties. If you have the right data, you can easily identify the hot real estate markets as well as your next profitable rental house. Using effective data analysis, your investing strategy will help you achieve your goals. It is important that you learn how to leverage data into 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’s algorithms can give you an estimate or “suggested price” of the properties around the country. 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. Tools like mortgage payment calculators are also helpful in speeding up number-crunching.
You can also use data to study foreclosure reports. In addition to information about property values of an area or an individual house, foreclosure reports also reveal market patterns over a period of time. If a recent report shows a sudden increase in foreclosures, it could signal 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. However, you must consider that foreclosure reports usually reflect past market conditions. While this type of information is valuable, it might not be the best source of current market data.
Knowing that foreclosure reports have limitations, it is best to have varied sources in 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. These various sources give you part of the complete picture that you can then piece together.
Now that you have all this data, you can use it to narrow your search to specific areas or property type. Otherwise, you would just waste time looking for properties you might not profit from or are in markets that are in decline.
Information from websites, reports, the MLS, and local sources can help you shortlist properties for further evaluation. This strategic use of data as a tactical tool could advance your investing ventures the way bigger investors do it. 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 TradeWinds offers a free market rent analysis to get you started on your investment journey. Contact us online or call us at 727-400-4722.
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