What to look for when acquiring new property in this market?

[Alexander L Gulledge]

Hi All,

So I've learned a lot in my REI journey and met some great folks here on BP. I've got capital and I'm actively looking for a new property to ultimately hold as a long-term rental. I'm a big fan of buy and hold strategy. So, I'd like to get some thoughts on approach...

Initially, I was hoping to find a property I could BRRRR but have found very few properties where the numbers make since. The ones I found; I was outbid on. I'm newer to this so I don't have as much confidence to squeeze the numbers as tight as some other more experienced investors might be able to...

Then I started thinking, perhaps I could acquire a turnkey 2b1b and do an addition to force appreciation and refi on the backend with a larger 3b2b and still effectively BRRRR and have a new rental in my portfolio. This still might work as a strategy, but I haven't found a good candidate property yet (layout and neighborhood have to be right for this to work).

Then I started looking into turnkey properties in desired neighborhoods that I know would make good rentals and support good rental income and have long-term appreciation. The issue here is that with investment rates as they are, I'd have to put more down (25% vs 20%) and then I'd be left with a long road to rebuild or repay that downpayment before I could repeat. 

I know I can do this, and I have the means. I'm just curious how other investors are approaching these types of challenges in the current market and want to get some feedback on what I should be looking for when acquiring new properties. I've been told it's like looking for a needle in a haystack and I'm beginning to see that for myself. I'm just very determined and passionate to make this happen. I want to consistently build my portfolio over the next 10yrs. 

I've been trying to focus on SFH as long-term rentals. I've flirted with the idea of a townhome / condo but don't feel they have the same long-term potential...

Any and all advise welcome! 

Thanks in Advance!