What makes a great deal great?
Howdy to all,
the Biggerpockets community continues to be a resource and destination for improving and honing my real estate and personal finance education.
Today I've brought a few potential acquisitions that have been evaluated conservatively with an eye to solve for cash flow, equity increase, and possibility to refinance within 2-3 years once that equity has built up.
Please tell me where I can improve these. Thank you in advance!
In a good/high cashflow location (based on the spreadsheet shared by Kailyn Bennett and formulated by Dave Meyer bp cash flow xls) https://biggerpockets.com/files/user/kailynb1/file/2022-cashflow-markets
- Rentable even at 85% vacancy
- Location expected to grow in upcoming year(s)
- Ability to handle deferred maintenance ($25K - $100K)
- Affordability of professional property management
- Refinancing 18-24 months out makes sense (BRRRR-type model)
Also important are the relationships surrounding the deal. These properties are sourced from a local property manager who also actively invests nearby.
One of the properties which really stood out also showed up in a separate comp search and worked out to a very good comparison. So, they know the market and what types of deals to expect.
Ok, thank you. Look forward to hearing experienced professional weigh-in and evaluate. Always learning. Cheers.