Rules of thumb

[Curt Beilke]

Hello,

This is my first forum post. I live in Hayward WI. I'm a newer REI. I have spent last few months education myself via REI books, videos and podcast's, most of which is via this great community of BiggerPockets. My goal is wealth building via buy and hold strategies with SFH and MFH. My forum question is relating to the funnel process of "rule of thumb". I have started my analyzing and find that most of the properties pass the rule of thumbs if I use a purchase price reduced far enough below asking price. My next step would be to make offers on these properties. My question is do you suggest making offers on all analyzed property that fits into the "rule of thumb" regardless of how much of a discount (how much of a low ball offer) you are asking for?

For clarity this is my version (so far) of the "rules of thumb".  Please feel free to help me make any needed corrections or changes to my analyzing values and checklist.

thank you,

Curt

My Analyzing Values and Checklist
Built	?
Cost per SqFt	? 50
2%/1% Rule	min 1% - prefer 2%
CAP Rate	min of 8%
Cash on Cash	min of 8%
Equity Appr%	5%
Monthly $flow	$100 MFH - $300 SFH
Y1 Ttl Return	?
Y5 Ttl Return	?
Debt Service Coverate Ratio	1.25% or higher
GRM	4% - 10%
NIM	?
amortization term	20 preferred up to 30
maintenance flat	10%
vacancy rate flat	6%
Capital exp - capex	8%
repairs	10%
50% rule	50% or less
70% rule	70%
exit strategies
estimated hold time
value adds

[John Thedford]

@Curt Beilke

Make offers on what you like and what you believe will pay the highest return. Always buy at discounts. You make instant money when you close. Don't forget a few more expenses in your analysis such as insurance. Your vacancy may be a little low for your market. Anyways, don't get too hung up. Find what you like. Make your offer based on that properties characteristic from a profit standpoint. Always plan on higher expenses, and if they run lower, your returns are better than projected. Don't get hung up trying to force a deal and it appears you are not making that mistake.