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Best Region To Buy Homes for Investment

CKM Real Estate LLC

Claire Bentzen

Jiaqi He

Sultan Mahmud Rahat

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The Problem

  • What regions provide the best opportunities for real-estate investments?
    • Real-estate investments provide long-term passive income generation

  • Key factors: mortgage rates, price-to-rent ratios, and location

  • Composite Score: minimizes mortgage and price-to-rent ratios
    • The lower, the better the investment

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Findings

The right-skewed distribution shows the average new composite score falls between 0.2 and 0.3

Highest Composite Scores

  1. Cupertino
  2. Los Altos
  3. Palo Alto
  4. Los Gatos
  5. Mountain View

Counties with the Most Properties

  1. Los Angeles
  2. Orange
  3. Cook
  4. Montgomery
  5. Jefferson

Lowest Composite Scores

  1. Hampton Bays
  2. Eastport
  3. East Quogue
  4. West Hampton
  5. Southold

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Cluster Findings

Cluster 0

  • Chicago
  • Columbus

Balanced investment opportunities

Cluster 1

  • New York
  • LA

Luxury investments

Cluster 2

  • Rochester
  • Syracuse

High-growth stock

Cluster 3

  • Flint
  • Lansing

Consistent and moderate growth

Cluster 4

  • Detroit
  • Cleveland

Short-term high return

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Suggestions

  • Mix and match properties from each cluster

Flexible options

  • Quick wins: Cluster 2 and 4

Rochester, Syracuse, Detroit, Cleveland

  • Long-term value: Cluster 1

Luxury Apartments in Los Angeles or New York

  • For future property lists, predict the composite score

The properties with the lowest score are the best investments

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Thank you!

Team Member 1 Claire

Team Member 2 Jiaqi

Team Member 3 Sultan

List of contributions

  1. Business Brief
  2. Data preprocessing
  3. Model building
  4. Prepare powerpoint
  5. README file
  6. Video

List of contributions

  1. Business Brief
  2. EDA
  3. Prepare powerpoint
  4. Video
  5. Combine Presentation Videos

List of contributions

  1. Business Brief
  2. Aggregated initial dataset
  3. Clustering and deep learning model
  4. README file
  5. Video