Building an Investing Criteria/Checklist

[Jason Appel]

Hi all,

I am curious to hear how to go about preparing their criteria/checklist that I should look in a potential investment (for Buy and Hold rentals), and what indicators I can look at in order to maximize my investments. Of course, I know there are no set criteria and no rules of what makes something "good" or "bad", but I would like to hear any guidance anybody may have.

Thank you very much

[Erik W.]

@Jason Appel, yes, you can always re-assess later, but for now let's focus on the numbers as they are.

You should always account for property management, even if you DIY.  It's a normal and customary expense for operating a rental property.  Anyone else looking at the property will include it as an expense, unless they plan to work for free.  Pay yourself, even if the money is simply returned to your next rental purchasing fund or you use it for extra principle pay down.  

I self-manage and pay myself 10% of gross rent, 50% of a month's rent for each turnover, and also an owner's draw (cash flow after all expenses).