How to Create Criteria for Buy and Hold

[Brandon Drayton]

Hey Team,

I am brand new to Real Estate Investing, and I've come to the conclusion I want to be in this for the long haul. I'm constantly listening to the Bigger Pockets podcast, and one of the things that I see that is often highlighted is making sure you have set purchasing criteria. I have read quite a few real estate books, and have about 21K saved up and am ready to purchase my first rental property using the BRRRR method. The market I'm looking to work in is Atlanta GA and surrounding areas as that's where I live. I'm trying to get some insight on what would be some solid criteria to give my agent to start getting properties sent my way. Does anyone have any insight on this?

[Art Perkitny]

@Brandon Drayton 

Since you are looking to generate cash flow, I suggest containing your search to neighborhoods that have higher rent to price ratios. The graphic below shows average rent to price ratios for neighborhoods in Atlanta

Once you have selected a few neighborhoods that meet your criteria, I would let your agent know and have them only send you listings that are located within those neighborhoods. This will help you filter your results and reduce time wasted looking a properties that don't meet you criteria. 

Hope this helps!