How do YOU analyse a property to determine if its a good deal to invest????

[Jordan B.]

Curious to see what the criteria is for other buy and hold investors when it comes to whether or not you will invest in a property. 

In short, I personally want to ensure I have the best chance at recoupiong every dollar i put into a property back in 8 years or less. Happy to dive a little deeper but curious what other seasoned investors criteria are. 

[Scott E.]

Quote from @Jordan B.:

Quote from @Eliott Elias:

It takes me 30 seconds to analyze a deal. ARV*.7 - Repairs.

This is the type of response I was looking for. Thanks!

I just tried this calculation against my last couple investment purchases and these numbers would have had me passing on all but 1. COmpletely understand all markets are different. I am going to work with the numbers and see which #'s would work for me using yoru caluclation. 

Do not use that formula. It is an antiquated and flat out irresponsible way to evaluate a deal.

Instead, just fully underwrite each opportunity. Once you review enough of them, this will get easier.

I know my initial response was short and didn't give you what you're looking for. But those factors still stand. Picking the right location is the most important piece of criteria to achieve your goal (have the best chance at recouping every dollar you put into a property back in 8 years of less).

If you pick a property in a strong location, with strong demographics, with population growth, with job opportunities, etc - Then you will very likely do great on your investment in 8 years.