Christian Osgood breaks down how to pick a rental market using Stephenville, Texas as an example. He looks for rising population and few new construction starts, the combination that pushes rents up. Find a town with growing demand and tight supply, and you've found where landlords win.
Chapters
Find the market that you want to invest in, like I did in Stephenville, Texas. Make sure population growth is going up over time. Check out the graph here for Stephenville, Texas's population. You see a market like this, your product is housing for humans. You want to provide excellent housing for excellent people. If more people are moving in, they will need more and more housing. Now, there's not a whole lot of new building starts in Stephenville, Texas right now, and it is expanding pretty rapidly. In basic economics, supply and demand— demand is going up, supply is relatively static. So if we can take out a lot of the housing here and do a really good job managing it, we're in a very good place.