How do you set your criteria?

[Yazan Ayyash]

Hey everyone!

The first step to buying a property is setting a criteria. What type of house am I trying to buy? How old should it be? How many rooms should it have? These types of questions can help someone set their criteria. How do you investors set a criteria that works best for you?

Thanks

[Taylor L.]

What are your goals?

My goal is to earn a return for myself and my investors, without dealing with tenants, toilets, and termites. Therefore, I invest in large cash flowing multifamily properties with demonstrated value-add opportunity which we can expect to perform well during economic downturns. Therefore, I only invest in markets with growing populations, growing jobs, diverse industries, landlord-friendly laws, and a few other criteria.

We buy pitched-roof properties of 70s vintage (at the absolute oldest) in acceptable condition without major occupancy problems. We buy properties that are commanding less rent than they could, if the management or condition were improved. After we buy, we make those changes and raise the rents. We have far more criteria as it gets more detailed, but those are the broad strokes.

Criteria take time to build. You need to learn about the business, your goals, and the tools at your disposal.