How do you underwrite properties you are considering if you do not have any expertise in that market?
Hi all, 

If you invest outside of a market you know well—either a different neighborhood in your city or a different city altogether—how do you learn about that market? How do you reliably learn what the market rent for the property in question should be, among other data points? Other than rent, what data do you look for to validate your investment in a new market? Thank you for your insights!
[{"id": "gtheh90", "text": "Look at submarket data/listings to get an overview for the area using a data provider (CoStar, RCA, etc.)", "replies": [], "depth": 1}, {"id": "gti2co6", "text": "If I were going neighborhood or submarket specific, and not just chasing yield, I'd start by getting knowledgeable about the area. Plan to walk around, bike, eat, and talk to renters and building owners - online tools don't provide context. \n\nRent - who is renting, what is the \"real\" going rent and expected concessions. What are the must-haves in that area - parking? laundry? public transportation? Visit a few properties that you'll compete with, how are they marketed? Is there a specific timing for new leases in the area, for instance near a university. Besides asking rents you are trying to get a feel for vacancy (time and cost to lease up), what are the long-term renters in the area are paying?\n\nArea - ask people about recent crime, local government, municipal services, new developments. What is the availability and cost for trades to repair and maintain the property? I've had an impossible time getting reasonable plumbers into nice neighborhoods.\n\nExpenses - will your purchase trigger a re-assessment of property taxes (usually the case), and if so whats the estimate? Property insurance? area expectation on landscaping and general maintenance?", "replies": [], "depth": 1}, {"id": "gtiaz3q", "text": "Depending on the size of the asset try interviewing local 3rd party management companies. They will gladly walk you through the market.", "replies": [], "depth": 1}, {"id": "gtjn03x", "text": "You need to talk to local investors and local tenants to see what they're actually paying.", "replies": [], "depth": 1}, {"id": "gtkfja6", "text": "Many pro developers don\u2019t do deals outside of 100 miles from their home for this reason. There are so many factors it\u2019s easy to make mistakes or incorrect assumptions outside of your area. I like to look at median household income, population density and co-located tenants(ie Chipotle opens near Panera)", "replies": [{"id": "gtkfkbb", "text": "100 miles is 160.93 km", "replies": [], "depth": 2}], "depth": 1}, {"id": "gvc8m7m", "text": "Find an experienced RE salesperson that works the particular market.", "replies": [], "depth": 1}]