What do you consider when choosing a rental property?

5 Replies

Promotion
BAM Capital
Multifamily Syndicator
Targeted 10% Monthly Returns | Passive Income
Backed by institutional-grade apartments, strong sponsor track record, $700M AUM, over 5,000 units
Learn More

Assuming you have already chosen an area to focus your search on (which is a whole separate evaluation process)...

1. Is there a way for me to add a value to the property? Add a bedroom, upgrade finishes, etc

2. Try to stay 3 bed room or higher (tends to have less turn over)

3. Minimize my cash left in deal (can I purchase and rehab for 75% of ARV)

4. Is the house on a good street / in a good neighborhood. I define good as the ability to get reliable tenants (I.e., not a D class neighborhood or part of town)

5. Am I comfortable with my ability to execute the rehab and can I minimize surprises post purchase when I walk through the home