What to look for in SFR Portfolios

[Joshua Kasali]

Hi Everyone, to be transparent, I'm an investor AND a multifamily broker here in Houston, and I'm working on taking out an SFR Portfolio deal. I have a good deal of expertise valuing and selling Multifamily deals, but I'm less confident in my ability to work this portfolio of Single Family Rentals. Reason being that I don't know what serious investors in Single Family Homes look for (metrics, targets and objectives).

From my time as an investor, I understand that *typically* Single Family tends to appreciate even more than Multifamily (in general absent intentional vale-add) and I also know that here in Texas, Single Family Rentals are not ideal for Cash Flow relative to other places with difference Insurance and Property Tax environments, but what I don't know is how investors weigh those realities together and look to grow a portfolio. Do they simply seek a minimal return for cash flow but hedge on appreciation? 

I know that most investors will only get in at heavily discounted rates, but I'm seeking crowd wisdom on what the less common investors who are market buyers look for. Thanks in advance!