Defining the Deal - Investment Criteria

[Shane Burlingame]

What makes a good deal?

I intend on investing BRRRR style in MA. I've run a few analyses on the BP calculators and have learned that high cash flow and the 70% rule are hard numbers to get to. I know these are guidelines, not hard rules. I am wondering though, in the beginning, how did you define an acceptable deal? What are good ways to learn the average returns in my target market?

 To actually find a deal, I am going to need to be flexible with those numbers, but do not want to go so loose that I risk losing on an investment. 

What do you all think?

[Jon Kelly]

@Shane Burlingame My qualifications were 12%+ COC return and $200/month per door. This doesn't even take into consideration the tax benefits, appreciation, etc. It's different for everyone, but I tried to keep it simple.

The best way to learn the average return in your market is to analyze deals! Analyze deals over and over again. You can share your results with local agents, investors, or on BP to get feedback.