Eyeball tests when buying property

[Alex Cabej]

We've probably heard of the 1% and 2% rules.  What general eyes tests do others use.

I live in northern NJ.  I have 2 initial tests.

1. I ideally value a property at 8 x annual rent.  I don't factor in rent increases or inflation really.  My Max is 12 x annual rent (if location is outstanding).

Reason: decreases chances that the property becomes a money pit.  And I can continue buying without being forced to sell. So it's really a play off the 10x cliche, I just discount 20% for the mortgage (sometimes higher than I want) and T&I increases.

2. I Wikipedia the median income of the incorporated town/borough/area.  If it is <6 digits, I (sometimes begrudgingly) move on.

Reason: it's a good basic barometer of area stability.

Again, these are just my 2 main eyeball tests that I perform.  What about you?