Topic: Owner occupied ratio to tenant occupied

I tend to over-analyze even the simplest information to the point I get paralyzed. When I am seeking a prospect multi-unit property for investment, like most of us I do a lot of research. Part of that research involves trying to figure out the amount of rental property inventory around the subject property. Supply and demand is what I'm trying to figure out. I definitely do not want to buy property in an area where there is too much supply - competition. What should I be looking at in order to decipher the a good ratio?

Thank you!

You need to map the properties in the immediate market area you are looking to purchase in and do a market survey. Contact each property by phone, fax or e-mail and ask for their current occupancy percentage, prices,etc. Take the ones that are in the same price range and look at their current occupancy rate.

If occupancies in your market area are below 92%, there is a surplus. Also take into consideration the unemployment rate in the area compared to the national average and if it is a college town. If you check occupancies in a college town from May-August, they could be typically lower than in the other months.

I would buy in a market where occupancy percentage in the months of May - September are above 92%.

Sandy, Thank you for the timely response. Though unfortunately during market surveys I have experienced many uncooperative properties willing to provide me their occupancy number. Its like pulling teeth. I may get one or two out of ten.
I'm referring to the type C property comparables (It's what I'm in the market for investing) in suburban markets with many of the property management are either non "main-stream" or its the
hands-on owner operators that are unwilling to provide me this information. Are there companies I can subscribe to that go out and do this uncomfortable task that I can pay for this service? Thanks!