Investors — what’s your #1 deal killer?

Question

You find a property that looks good on paper, but what’s the one thing that makes you immediately walk away?

• Rehab being too high?
• ARV not strong enough?
• Neighborhood?
• Taxes/insurance?
• Price?
• Seller expectations?
• Something else?

Curious to hear what everyone looks for when they’re evaluating a deal. And if you’re actively buying right now, what type of property are you looking for?

Colin Spell · Answer

Location is always the first thing that can make or break a deal for me. Before I decide whether I truly like a property, I want to know more about the area surrounding it. I look at crime and safety ratings,the condition of neighboring properties, rental demand, population and job growth, and the overall potential for long-term appreciation. If a property is in a rough area or surrounded by homes that aren't being maintained, that can quickly make me walk away from a deal.

If the location checks out, the price is the next thing I analyze. I look at comparable properties in the immediate area and ask myself, "Am I buying this property at a good price or am I paying a premium that will hurt my returns?"

Days on market also plays a huge and critical role in my strategy. If I find a multifamily property in a strong location that's been sitting for a while, there may be an opportunity to negotiate below asking price or receive seller concessions. Like Caleb mentioned above, sellers can sometimes value their properties based on what they want to get rather than what the numbers actually support.

Right now, I'm primarily looking for multifamily buy and hold opportunities in A-/B+ areas throughout the Carolinas. My goal is to find properties where location, purchase price, rental demand, and long-term appreciation all make sense, not simply buy a property because it's technically a multifamily property.

Since you're also located in the Carolinas, I'd be more than happy to connect and see how we can help each other!

Arman Ahmed · Answer

For me, the biggest deal killer is when the numbers only work under perfect assumptions. If the rent is aggressive, rehab estimate is too thin, or there’s no room for an unexpected repair, I’m usually out. I’d rather pass on a deal than spend years trying to make a bad one work. That’s especially important with out-of-state investing, where having solid local comps, contractors, and property management can help uncover problems before you close.

Eric Gerakos · Answer

Poor tenant pool. Always my first concern.

Jaron Walling · Answer

My #1 fear is not hitting the ARV on a refinance. The houses that we typically target are located in working class, B-/C neighborhoods which appear to have come to grinding stop. Seller expectations may need more time to change before actual CF opportunities can be created via BRRRR. There's way more supply than demand in those areas right now. We experienced some of this last year when we sold our flip.

If we buy again this year I'm aiming for a BRRRR with rental+ grade materials and a reduced SOW. I'll trap as little $$$ as possible, create equity, and get it rented in the spring of 2027.

Caleb Brown · Answer

Area then price. #1 thing I look at is the zip code when analyzing. From there I will look at price and rough rehab. You can always lowball but some sellers are too high for that.

Investors — what’s your #1 deal killer?

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