Data becomes more valuable when used 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. However, you don’t have to be a real estate giant to be able to use the data they make available to the public. There are platforms like Trulia and Realtor that regularly create and share data like individual property histories, neighborhood trends, and a lot more. There are also tools like mortgage payment calculators that can help you be more efficient in number-crunching.
Foreclosure reports also provide valuable data for you to study. Aside from getting good information about property values in an area or individual houses, foreclosure reports also let you look at market patterns. When you look at a report that shows a sharp increase in foreclosures, you can anticipate economic trouble in that particular 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. 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.
Given that foreclosure reports have limitations, it is a must that you reference a variety of 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. Individually, these sources give you a piece of the picture, which you can put together to see the bigger image.
Now that you have all this data, you can use it to narrow your search to specific areas or property 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.
Data gathered from websites, reports, the MLS, and local sources are helpful for shortlisting potential properties for further analysis. When you use data as a tactical tool, you can advance your investing ventures similarly to how big investors do. Given all of that, you may find that leveraging data appropriately can help you achieve even more than what you initially planned.
To save you time, Real Property Management Eclipse offers a free market rent analysis to get you started on your investment journey. Contact us online or call us at 425-209-0252.