Screening metrics for newbies

6 Replies

Hi all, I just graduated college last year and have been reading and researching about real estate investing since then. To speed up the due diligence process, what Top 5 metrics do you use to initially screen a property to see if it's worth looking into more? Your top 5 quick metrics you look at before moving on to a different property or performing some more complicated calculations...

Not sure if this will help but I am located in Northern California, 23 years old, $90k salary, looking into SFH or small multi-family (duplex/triplex) to start out.

Thanks in advance, my goal is to get my first deal this year!

@Account Closed  

Hope you don't mind some advice without answering your question. Consider the idea of "house hacking". This is where you purchase a home and rent out rooms (ie to friends, etc.), or preferably purchase a 2-4 unit property and live in one unit while renting out the other units. This will enable you to put a much lower down payment (5% vs 20%-25%) and you might find a deal that greatly lowers your cost of living each month since you are collecting rent to cover most of your expenses. If you go this route then buy something you want to live in. If you want to live there, chances are you will be able to rent out the bedrooms or other units without a problem. California is expensive which makes a house hack a great potential first step. Search "house hacking" and you will have plenty of content to read and consider.