How to Evaluate A Real Estate Market For Multifamily Investing (Part 2 of 2)

In the previous article we discussed the demographics and macro-economic considerations you should review when qualifying a market for real estate investment. In this article we will dive deeper into the Regulatory Environment, The Local Real Estate Market and Sub-market.

See part one of this article here.

Regulatory Environment

Landlord and tenant laws

As with all business, the regulatory environment is important to understand as this may help or hinder your business. In the case of owning rental property, it is preferable to be in a market where regulations are not overly favorable to tenants. For example, if you need to evict a non-paying tenant but because of the law you can not remove them for a year that will significantly impact your revenue.