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Leveraging Data in Kyle Real Estate

The key to being a successful Kyle rental real estate investor Kyle Real Estate Investor Reviewing Data on a Laptopis understanding how to collect and use the right data. Investors use data in multiple ways, but most are focused on comparing real estate markets and potential properties. With the right data, you can identify the hottest real estate markets in the country and make finding your next profitable rental house much easier. Through effective data analysis, you can make sure that your investing strategy moves you closer to your financial and business goals. It’s important to learn about a few ways that you can leverage data into greater profits.

An important part of using data effectively is using it systematically. Many successful rental real estate investors use the Automated Valuation Method to estimate current home values. Zillow creates algorithms that calculate the estimated or “suggested price” of properties around the country. But you don’t need to be a real estate titan to leverage the data they collect and offer to the general public. Platforms like Trulia and Realtor regularly create and share data from individual property histories to neighborhood trends and more. You can even find tools like mortgage payment calculators to help your number-crunching go faster and be more accurate.

Another way to access and use existing data in your real estate investing is to review foreclosure reports. Not only can you get valuable information about property values in an area or even for an individual house, but you can also look at foreclosure reports over time for market patterns. If the most recent report shows a sudden spike in foreclosures, that may be indicative of economic trouble in that area.

You can also use foreclosure reports to help you zero in on growing markets at the beginning of their growth phase, leading to accelerated appreciation as the market strengthens and matures. Still, it’s important to remember that foreclosure reports are pictures of the past and not necessarily current market conditions. While the information may be valuable, it isn’t always the best place to find up-to-date market data.

Given the limitations of foreclosure reports, it’s vital to reference a wide range 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 provide a part of the complete picture, which is then up to you to piece together.

With all that data in hand, your next step is to use it to narrow your property search to a specific area or property type. If you don’t, you risk wasting a good deal of time searching for properties that will not add up to solid profits or looking at markets that are in decline.

Using the information gathered from websites, reports, the MLS, and local sources, you can more efficiently identify potential properties for further in-depth investigation. This strategy uses data as a tactical tool to advance your investing ventures the same way the big investors do it. In the end, you may find that leveraging data the right way will help you achieve more than you ever thought possible.

 

If that all sounds too time-consuming, Real Property Management Lonestar offers a free market rent analysis to get you started on your investment journey. Contact us online or call us at 512-520-9060.

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