What does “Buying Right” mean to you today?

[Tony Scarangella]

I’m currently reading The Millionaire Real Estate Investor and obviously enjoying it a great deal. Highly recommend.

A common theme in the book is “buying right”. Of course, I believe in the mantra “you make your money going in” and want to emulate that, but with the market so hot and the idea of a discount so unlikely - I’m curious if your strategies or rules have changed (or stayed the same) in terms of buying right, and what that term even means to you in today’s market.

Thanks!

[Marshall Leipprandt]

@Tony Scarangella My idea of buying right is buying a property with a specific strategy in mind in an area that supports that strategy. Buying right also means buying a property where the fundamentals generally make sense now and will continue to get better in the future. I am okay if a property isn't a home run right now. I plan to hold for 20+ years so my analysis is long-term. A property in an area with historically strong appreciation, a diverse and growing economy and a quality tenant pool are key things I look for when I look for SFHs or small multifamily properties that I plan to use as LTRs.

When I analyze for STRs, I want a property in a historically tourist friendly area with consistent demand. For me, these are beach areas where people enjoy visiting for family trips, weekend vacations, wedding destinations, etc.

I would analyze each of these areas with entirely different parameters with my different strategies in mind, so for me this is my "buying right". I think I remember reading "The ABCs of Real Estate Investing" a few years back and the book had overall great info but more or less said: "here are the fundamentals of real estate...simply make an offer based on the actual performance of a property, get a good deal, and you'll be on your way towards great success". I just don't think the book applies the same in our current market.