Deciding my criteria for investing

[Brian Clinkscale]

Hello Everyone,

Im currently deployed and will be returning home (Georgia, Greater Atlanta area) in a couple months and want to start investing in real estate. Before I deployed I got my real estate license so that I could be a full-time agent and learn all the aspects of real estate, with my main goal being to become a active real estate investor. Ive been reading all the books I can, listening to podcasts, viewing properties on the MLS, and just utilizing all avenues possible that I know of that will hopefully prepare me to make sound decisions upon my return. One of the main things I'm having a hard time with is trying to figure out my criteria for the type of property I want to invest in. For example a investor that only invests in "3 bed room single-familly homes with a specific price range made after 2010" My question is how do you come up with your criteria? Is this something that I will have to wait to figure out when I come home because I don't know my market yet and what areas specifically in Georgia I want to invest in? Or is there a way I can figure this out now so that when I return I can jump right into looking for properties?

[Mitch Messer]

Hi @Brian Clinkscale and welcome to BiggerPockets!

First, I thank you for your service!

I suspect most investors develop their criteria from practical experiences. I don't do condos because I've bought them in the past and they kicked my butt each and every time. I don't look at homes with fewer than 3 bedrooms because, in my experience, the kind of tenants I attract won't consider anything smaller. Older homes tend to have more repair and maintenance problems, so you can see why someone might set an age limit on the houses they buy.

I think the key is not to get too restrictive too early in your investing career. At very least, make sure you know the underlying reason for your criteria, rather than just adopting someone else's blindly.

Don't worry: You'll be making tons of painful mistakes before you know it, just like us Pros do!!