How do you know when a deal is a good deal?

[Ashley Pittman]

Those that do buy and holds, how do you judge if a deal is a good deal? Do you compare the property with other properties in the area, or do you use a formula? Also, are there laws to be aware of in the state you live in when investing, such as buying and holding?

[Andy Collins]

Know your market, know what a house is worth in the area you are looking in, know the trends in both price and rent for the area.

I work primarily in 3 zip codes, I know those areas well (but know of parts of those I won't invest in),,you should know whats going on with the schools, any development planned in the area employment opportunities or potential layoffs,,knowing the area (and of course the knowledge you get from biggerpockets) will help keep you from making a mistake.

I look in other areas from time to time, but when I do I have to do a lot more due diligence