#98 Christina Suter: Education- Investing in Stabilized Markets & What Works

"When you're investing in Knoxville, TN, your capital improvements will wipe you out faster than when you get a higher rent base like you would in a Southern California market." -Christina Suter 

I am continuing with my 4 part series on investing in appreciating and depreciating markets and what that means. Today I am talking about stabilized markets and some of the ways investors can invest in these types of markets and what that means. A stabilized market can be found in places like Knoxville and Indianapolis because although appreciation is not high, it is stabilized because I can expect for them not to dip too low during recessions and other major economic disruptions. Rentals in these markets are consistent with of course their own negative drawbacks like what happens when you increase rents or vacancies, but overall investing in stabilized markets is positive. Using FRED and studying housing charts for your desired location is the first way to really dig into whether a market is stabilized or not. 

 

Topics Covered in this episode:

Fred Housing chart  What is a stabilized market  What is the level of demand in these markets  Why rentals stay consistent in stabilized markets  Cash flow vs appreciation  Why turnover is extremely important in these markets  Can tenant loyalty affect your investment  Why you should avoid B- through D properties  How to manage damage  Do flips work in price sensitive markets  What are lower margin markets What effects do price changes cause in stabilized vs appreciation markets 

 

Listen now and find out why Christina thinks education is the key to financial leadership on Spotify, iTunes and Youtube. 

The Real Estate Breakthrough Show with Christina Suter is where we talk about the reality of real estate, the mindset you need and the tips and tricks to get you moving forward in investing. Join us every week and learn everything you need to know to invest in real estate education and create real wealth for a lifetime.

 

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