New to investing, what criteria makes a good deal?

4 Replies

I just started getting into investing and haven’t closed my first deal. I have found a property that I think may be worthwhile, but I don’t know for sure. What questions do you ask yourself about a property that you would potentially like to rent to know whether it is worth buying?

You should run a full analysis on it Shaun. Have you used the BP calculators? That's a good way to analyze a property to determine if it's worth buying for you. 

@Shaun Morgan

Shaun,

Some generals numbers for you; 2% rule (search the millions of hits on any search engine), Return on Investment (ROI), Cash on Cash return

Come up with a standard for these any other other number you can calculate.  Once you do that you can figure out quickly if a property is a good investment.  

Not the only metric but a big one :

How much will be in my pocket each month after all expenses are paid up ? 

If that number is less than 250  bucks a unit then it’s not a deal and not worth pursuing