After zeroing in on a particular neighborhood, part of the extensive process of smart apartment investing is doing what’s called a comparative market analysis (CMA).
What’s a CMA? It’s a process that your apartment investment advisor can help you with that involves obtaining real estate comps in the area. Comps are properties that are similar to the one you want that have recently been sold or are currently on the market.
Good research will include comps that look at sales, or potential sales, from the past six months. By looking at these numbers, a real estate buyer can get a ballpark idea of the right price for similar investment opportunities.
When looking at comps be sure to compare square footage, construction age and any amenities or upgrades. It’s important to remember that if a property has delayed maintenance needs that should be factored in to the CMA.
Once you determine comps in a neighborhood, the numbers could tell you two things: 1. This is an area that I can afford and should proceed with due diligence of the property. 2. The comps in this part of town are more expensive than expected and might not be within the budget.
Comparing markets in San Diego
We’re also experienced at doing all aspects of CMAs—above and beyond just collecting recent sale prices. Let us help you compare all the numbers and let you maximize income with a personalized apartment investment property strategy.