How To Know You Have A Good Deal

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A Good Deal means different things to different people.

After many years of investing, A Good Deal to me is one that is:

1. Bought "off market" so I can buy below market price. I like this one because I have "instant equity" that protects me in the event of declining values

2. It needs to cash flow at $200 a month - I don't like negative cash flow for the sake of "appreciation". 

3. I don't buy for "future appreciation". It takes time and money to see if a property will appreciate. Between risk, tenant hassles, vacancies, mortgage payments, property taxes, insurance payments, replacing a roof, water heater and so, it takes a lot of appreciation to actually get ahead on that. Sometimes it pays off, sometimes not. So I don't gamble on it. 

I've been around a while so I understand that when prices drop, they can drop quickly and takes years to rebuild in inflated dollars. 

4. I buy in decent neighborhoods where you can walk at night. Dicey neighborhoods are harder to keep rented with good tenants Decent neighborhoods are a lot less hassle.

5. These are readily available, so I don't worry about finding "good deals".