Your rental property criteria

[Shaun R.]

Obviously you guys can't tell me exactly what criteria I should be looking for in a rental property in my area, but as I'm looking for my first investment property I'd love to hear what your criteria are when you're looking for one.

What are your guidelines to determine whether a rental property is a good deal for you?

[Andrew Johnson]

Shaun R. This is far from universal, but I want to make sure my property is nice enough (and rents for enough) so that I don't get left with "leftover" tenants. That helps to skew me away from C/D areas, old beat-up properties, etc. However, it does lower my costs to turn a unit, limits eviction issues, reduces challenges with non-payment (still get my share of late payments), etc. It limits my upside but I'd much rather pay for paint touchup over a full repaint!

I'm sure others will embrace a value-add property, will happily put in sweat-equity, will do the interior repaint with their free weekends, that just isn't me. Bottom line, you have to match you (the investor) with the deal.