What are your "prerequisites" in finding the right investment property?

11 Replies

OK, this might be very broad, but I'm putting together my list of what I want to invest in so my broker can start looking.  I'm looking at two options: "very local" multi-families in the Lowell, MA area and property in Florida (where I used to live and have a buddy still there and his wife is a real estate broker and he used to flip/hold houses before the market crashed on him).

Both are for income purposes.  Not for vacation, etc...

What are the down and dirty GO/NO GO criteria to guide one to success in their buying strategies?

Hopefully there will be a ton of posts with all sorts of angles.  I can't wait to pick some brains :)

Thanks everyone,

Johnny

1. Location is first for me.  I want properties near hospitals, colleges, military bases, or transportation.  They have to be less than an hour from the main business district is. 

2. 6-10% ROI.

3. More 2 bedroom units than 1 bedroom.

4. parking

5. B & C neighborhoods.

Single Family: 3 Bedroom 2 Bath or 4 Bedroom 2 Bath

Best Neigbhorhood/worst house

Class A - B properties

Great School District

Appreciation above inflation

12-15% cash on cash investment

Value Add Need- Distressed, Short Sale or Work

SW Florida here:
I prefer to buy newer construction 1995 or newer if possible (insurance reasons)
CBS preferred over wood frame (huge price increase for wood frame on insurance)
Below market---this is HUGE for me.....if the market drops I may not be underwater
A or B neighborhoods
3/2/2 minimum in most cases...no 2 bedroom houses (they don't fit the demographics)
The deal has to make sense, have appeal to tenants, and pay me to own it.

No company avatar mediumJohn Thedford, John Thedford | 239‑200‑5600 | http://www.capehomebuyers.com | FL Agent # BK3098153

Thanks everyone!  I appreciate the info.  It helps to open my eyes to places like Lelith mentioned.  Does anyone have any advice on common things that arise to walk away from?  I guess signs that the house isn't what you think it is and to walk away?

Thanks,

Johnny

Anyone else have any pre-req's?

Single Family Pre-req's:

Multi-Family Pre-req's:

Johnny

Just food for thought!  I just read the book written by the owners of Zillow.  Probably the best book on market analysis and what makes neighborhoods appreciate more than others.  Honestly, couldn't put the book down.  One example is houses a mile or less from a Starbucks!  They back everything they write up with statistics.  They also write about gentrification and how neighborhoods gentrify...examples NY neighborhoods.  Just wanted to throw that out.  Thanks

@Michael Tulipano good to see someone local!  I'm looking for a new book to read, just finished The Millionaire Real Estate Investor and looking for something to give me an edge on the market.  I'll have to check it out.  Have you bought anything yet or been to any of the meetings?

Johnny

I read the Millionaire Real Estate Investor too....Great book!  Haven't bought anything yet...Hoping to go to a meeting soon.  You?

In my RE License course.  Haven't bought, still debating on exactly what to buy and how much to spend on 1st deal.  Reached out about a couple deals, but either realtors don't want to make money or they are making too much....because a few of them just never got back to me on listings....

There's a MassRealEstate Meeting tuesday in Peabody I'll be trying to get to.  I just downloaded the ABC of real estate investing.  It should be a quick read.  Trying to soak it all in so I don't eff up my first deal ;)

I am looking for side-by-side duplexes. To me, these are like buying 2 SFRs with 1 loan. They can be responsible for all yard work and snow removal.

Around 20k or lower price

Low taxes (~600 ish)

No stolen pipes or furnaces common in the area.

Little or no work needed

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