What are some of your pre-screening requirements for deals?

[Michael Via]

Hi! I'm curious what some of the various pre-screening requirements investors have when looking for rehabs or flips. Thanks!

[Justin R.]

Neighborhood, Neighborhood, Neighborhood.........And then 1. Does it have potential 2. Does it have a value add component 3. Are most issues cosmetic vs structural 4.No more than 75 percent of ARV

[Michael Via]

@Justin R. Sounds like good ones! Thanks for the insight.

[Shera Gregory]

Newer than 1950. Our market has tons of homes in the 1910 to 1925 age range. For me, these have too many high-cost unknowns -- rewire all the knob and tube? deal with plaster repairs? re-do outdated HVAC? .. the list goes on.

[Shawn Ward]

@Michael Via :

1. must have designated parking

2. must be 1k sqft+

3. must have at least 3 strong DIRECT comps

4. purchase price = .72-.75% of ARV

5. ARV confirmed by a trusted agent

All the best!

sjw

[Michael Via]

@Shera Gregory That makes sense. Definitely sounds like a headache to deal with those old houses. :)

[Michael Via]

@Shawn Ward Thank you! Those are good points for sure. Confirming your ARV is a great idea.

[Eric Johnson]

Check your biggest pool of buyers. Make sure your ARV lands in the biggest pool of buyers so you have the highest chance of exiting your project, efficiently and effectively. Don't buy a property and when it's done 90% of the people in the area can't afford it.

[Michael Via]

@Eric Johnson, thank you! Great advice.