Cold market versus hot market
We will go over the characteristics of each of the markets, such as: shelf time (DAYS on market), number of bids on each property (multiple offers), is a low bid more likely to be accepted in a hot market or a cold market ?, price increases.
The decision to work in a hot or cold market will ultimately determine how many bids on different properties we will make until our bid is accepted, how long it will take us to find the right deal for us, whether we will have time or ability to inspect the same property etc.
When it comes to choosing a city to invest in the United States - There are some parameters we need to know: population size, city migration, unemployment level, tenant laws in the same state (are the laws in favor of the tenant or landlord and why is it important?), Does our purchase budget fit the same city (for example - if the investment budget is 100 Dollars, it is not advisable to work in a city where there are a total of 5-10 properties in the range of 100 for sale).
Another thing to consider - the level of property taxes (which the landlord pays in the US), there are states with very high property taxes, and there are states with relatively low property taxes.
In addition, the choice of city should also be in accordance with our investment strategy - it may be that for new construction and for income-producing real estate investments, we will have to choose different markets (but certainly can also be in the same market).