Personal Investment Priorities
For all of you investors and property owners here on BiggerPockets, I am seeking some feedback and would greatly appreciate your time and input. What is your most important priority to you when looking at new real estate property?
Location, location, location is the old adage we have all heard; however, I am curious what else you are looking for?
Cash flow first and appreciation value second. But the property must be the type of property I would like to manage and preferably within my target area (2 mile radius of my home). It doesn't matter to me if it has tenants in place or is empty. It doesn't matter to me if it is turn-key or needs to be rehabbed.
Numbers.
Like @Marcia Maynard mentioned, does it cash flow?
What's the ARV and what are you buying it for? How much does it cost to get it up to par?
You make money when you buy.
Location, location, value.
What I am really looking for are strong value ad opportunities. I want to force appreciation and make wealth out of thin air.
So location is huge but next depends on the property.
If it’s a rental, it’s gotta cash flow. I like value add properties so the sweet spot on a rental is something that cash flows now with a value add potential on top of that.
For flips I’m looking for value add. This applies to rentals and flips but is more important on flips while cash flow is more important on rentals.
Does the property have room for an addition? Is it beat up or already remodeled? Could I add a pool? Do a renovation, fix the landscaping, etc.
There are some properties that look good at first but are on too small a lot to do an extension or are already halfway through a remodel or somewhat updated and I always pass on them in those cases.
#2 General Landlording & Rental Properties Contributor
Cash flow followed by value add.
SFHs value is driven by home buyers so I avoid them entirely. I prefer to target multi unit purpose built rental properties that have been poorly managed and are under market rent. The challenge then is to get rid of the existing tenants to allow me to bring rents to market.