In this week’s Fire Labs Podcast episode, I discuss how to select cities to invest in, especially if you are a first-time rental property investor. This is pertinent to anyone who is looking to invest outside of the city they live in. 

I cover the selection process and why you should start with your unique background, experiences, and knowledge. I walk you through a bottoms-up approach, and a top-down approach. The bottoms-up approach involves listing the cities and markets an investor knows well due to their life situation, background, and personal connections. 

The external research must then be used to narrow down the list. The top-down approach involves extensive research on the internet to determine the top-performing cities and markets.

Once the investor has shortlisted three to five markets, I recommend creating a spreadsheet with three key metrics: population growth, unemployment rate change, and employment diversification. 

After you select the city, I share with you key characteristics that you must look at to identify pockets in the city that will match your investment criteria. Grab your worksheet here . I have examples of a few cities sthat will get you off to a great start!