July 2016 - Lessons Learned

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TH E M R EP O RT | 7 MDWELL Positive economic indicators typically include a strong U.S. dollar, job gains, lower oil prices, increased consumer spending, and general improvements in the housing and business sectors. Based on these indicators, Utah, Washington, and California have the best economies, ac- cording to WalletHub. In order to identify the best-performing state econo- mies, WalletHub's analysts compared the 50 states and the District of Columbia across three key areas: economic activ- ity, economic health, and innovation potential. In addition, the states were scored based on 23 metrics and given a value between 0 and 100 (wherein 100 represents the most favorable economic conditions for a state and 0 the least). For real estate investors, better economies could mean more opportunities in a flourishing housing market. With more than 15 years of experience in the SFR market, Tim Herriage, CEO, 2020 REI Investment told MReport that he focuses on economic fundamentals when it comes to deciding where to invest. "I have always focused on jobs and schools as the main driver for my investment decisions," he said. "Chasing high rents, without understanding the important underlying fun- damentals: leads to poor investment decisions." STATES WITH THE BEST ECONOMIES: UTAH The state with the best economy for investors is Utah, with a WalletHub score of 71.55. Here, economic activity and health are both ranked second out of all states, whole innovation potential is ranked fourth. WASHINGTON Though Washington took the second place spot overall, the state came in first place in terms of economic activity. In addition, the state is 10th in terms of eco- nomic health, and third in terms of innovation potential. Overall, Washington has a WalletHub score of 70.68. CALIFORNIA Third on the list for best econo- mies in the U.S. is California. This state received a score of 67.84 and is ranked second overall for innovation potential. Economic activity and health ranked fourth and 12th, respectively. MASSACHUSETTS WalletHub placed Massachusetts fourth on the list, and the state took the first place spot for inno- vation potential. Economic activity ranked eighth, while economic health came 15th place. COLORADO Wrapping up the top five is Colorado, with an overall score of 60.81. The state did best in the innovation category in fifth place, while taking the seventh and ninth spots in economic health and activity categories. Where Real Estate Investors Should Be Placing Their Bets STATES WITH THE WORST ECONOMIES: MISSISSIPPI The worst economy by far is located in the state of Mississippi. WalletHub gave it a score of 31.86 and it held the last place spot for economic activity. Economic health is ranked 48th and innovation potential took 44th place. ARKANSAS Arkansas came in second on the worst economies list, with a score of 33.94. In addition, economic activity is ranked 49th, economic health is ranked 36th, and innovation potential took the last place spot. WEST VIRGINIA Third on the list is the state of West Virginia. The WalletHub score in this state is 34.31 and innovation potential held the 50th spot of all the states. Economic activity and health are 43rd and 47th on the list. MAINE The state of Maine has the fourth-worst economy in the U.S. The score here is 34.34. The state came in 48th for economic activity, 45th for economic health, and 47th for innovation potential. NEW MEXICO New Mexico concluded the list for the bottom five economies with a WalletHub score of 34.52. The state is ranked last in terms of economic health, 47th in terms of economic activity, and 15th for innovation potential. Source: WalletHub's 2016's States with the Best & Worst Economies

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