All Forum Posts by: Christopher D billik

 You are correct.  We look all over the map in the markets where we do business.   But we do not do it manually.  We use software to pull data on all properties  & provide us with results on the properties that have the highest probability of meeting our criteria.  The goal is to go from the insignificant many to the significant few, then we roll up our sleeves on those few.  I imagine you do the same thing with stocks.

I think the location and the condition of the home are the most important. 

You can change most things regarding a property but you can never change the location.
The condition of the home is important because it shows what you are willing to handle or update on a property.

When I first started out, I just wanted to handle 'lipstick' type updates. Now, I handle most types of properties as long as it does not have water, fire or foundation issues.

Best of luck!

We have a hurdle rate objective (ROI/cash of Cash) for our purchases. We adjust the rate every 6 months. The rate drives our strategy, which is to purchase distressed, renovate, and then pull as much cash as we can out of the property after the updates are completed through financing or refinancing. What we have found is that the hurdle rate drives all of the other criteria (location, class, price.

@Christopher D billik you may want to use this BuyBox outline to help yourselves:

• Motivation for Investing: _____________

• Risk Tolerance:
  High
  Medium
  Low

• Type of Investing:
  Wholesaling
  - How are you going to find motivated sellers willing to sell for LESS than market value?
  
  Flipping
  - How are you going to find reliable contractors?
  - How will you estimate & budget so profitable?
  - How will you monitor quality of work?
  
  Rentals
  - LTR: 12+ months
  - MTR: 30+ days
  - STR: < 30 days

• Rental Property Plans:
  BRRRR: Buy, Renovate, Rent, Refinance, Repeat
  House Hack: live in property while repairing

• Property Class:
  A: Tenants with 680+ FICO scores
  B: Tenants with 620-680 FICO scores
  C: Tenants with 560-620 FICO scores
  D: Tenants with < 560 FICO scores
  Other: ____________

• Property Type:
  SFR
  Small MFR (2-4 units)
  Medium MFR (5-20 units)
  MFR 20+ units

• Finances:
  Cash: $_____
  Mortgage Pre-Approved Amount?
  Conventional Mortgage
  DSCR Mortgage
  DSCR Renovation Mortgage
  Other: $_____

• Purchase Budget: $_____

• Repair Budget: $_____

• Property Condition You are Willing to Work With:
  Turnkey < $3,000
  BRRRRR > $3,000
  BRRRR > $15,000
  
  
• Target Rent-to-Price Ratio: _____

• Target CAP Rate or ROI: _____

• Target Cash-on-Cash: _____

• Deed/Title:
  Your Name: required for FNMA, FHA & VA mortgages
  LLC: required for most DSCR mortgages
  Trust
  Partnership
  Other

@Christopher D billik from your posting I am assuming your strategy is LTR focusing on SF?

If that that is overall strategy, before you even setup your criteria, I would suggest be a bit more specific on your goals:

1) Property location: where are you planning on investing? This would drastically vary and will affect all other goals/criteria.

2) How much are you willing to afford: what is your price point that you are willing to borrow?

3) What kind of returns are you expecting: do you have realistic expectation knowing a LTR has ongoing expenses: property management, maintenance/repairs, property tax, property insurance, vacancy factor, turnover cost etc.

Once you have answers to above, you can then go into specifics of criteria. Hope that helps..