How many good deals are you finding?

[Connor Duff]

I'm a new investor looking to buy SFR in the greater Phoenix area. I've been looking at and analyzing roughly 5 deals every week using the rental property BP calculator. I have 2 questions:

First, how many properties do you recommend I should be looking at and analyzing every day/week? 

Secondly, on average, how many of the properties that you look at actually turn out to be "good deals"? I know everyone has their own criteria for a "good deal" and that is a very subjective term but I'm just looking for averages to see if I'm in the same ballpark. 

[Joe Hammel]

I probably put about 10-30 deals in the calculator a week for a couple months (mostly so many because was studying about 25 different cities/markets. Then it got to the point where I didn't have to run the numbers... I just could take a brief look at the house and neighborhood and know, needs about $15k, B- market, ARV $135, rent $1300, ROI 12-15% cash flow $300, after refi ROI "real good", etc... This is when I knew I was analyzing plenty of deals because I no longer had to put in the calculator and could "red light" or "green light" a deal as soon as I looked at it. Now I look at pics, location, price, and can immediately "red light" (not worth looking into) or "green light" hey this is most likely going to be a "good deal".

Like you mentioned "good deals" are subjective. 10% ROI in great location? 20% ROI in D location? Or somewhere in between...

In our market we have about half the inventory we should. This time last year had almost 30k houses for sale, now we have about 15k for sale.. makes things tough. Working largely with investors ...we have 16 "pending" right now with clients. ALL, "good deals". Hopefully this encourages you that you can at least find 1 to get you started.

Especially for the first, Go find a deal that is "good enough" just to get started as the investors that I see are the most successful (determined by ROI and cash flow) are the ones the buy, not sit and sit and sit looking for that one absolutely perfect deal.

Real Estate is an amazing investment, most likely as long as you buy and manage smart; the cash flow, equity pay down, appreciation, and tax benefits, will confirm that their was no better place for your money.