Investing Criteria Update - You minimum requirements

[Ryan Edwards]

Hi all,

A long time ago Brandon Turner (@BeardyBeandon) mentioned his minimum criteria for investing was: 

* $100/mo/door cash flow

* 10% CoC annual return

I’ve used that as a guide since I heard that… thank you Brand Turner! 

In a recent BP podcast David Green (@DavidGreen24) mentioned his minimum investing criteria has changed based on how our market has changed in 2023 & 2024. Makes complete sense!

Being a long term rental investor, I was curious what your minimum investment criteria are in mid-2024.  Would love to hear your thoughts! 

[Scott Mac]

My rule number one is- don't have losses. 

That means don't bite off more than I can chew, it also means get a good grip on the risk of owning it and avoid things with high risk- don't have losses.

If you buy three things and work the same hardness on all of them, two work out and one is a loss you've worked three times as hard to get one win.

Don't have losses. 

I know you were looking for mathematical formulas, but for me this Overrides any math.

But also realize what might be high risk for you, due to my knowledge and experience might not be high risk for me, allowing me to take a big payoff with it.... And to foresee that large payoff before hand where others may not.

Good Luck!