What criteria do you consider when qualifying notes?

[CJ Lee]

Hi everyone,

My goal for the next 90 days is to buy my first note!  

I'm transitioning from multifamily brokerage to note investing (hopefully full time in 2019). Though I've been in real estate for quite some time, I'm new to the world of notes. From what I'm hearing from local note investors, many of them focus on NPN acquired directly from hedge funds given the steady increase in foreclosures. I have spoken to a few seasoned note investors who will only buy seller financed performing notes even though those seem harder to come by. I'm open to both performing and non-performing notes for residential, MF and NNN and wanted to see how you narrow down which notes to seek.

I know everyone has their own preferences and strategies with qualifying notes so I'm hoping you'd be open to sharing whatever you're comfortable with.  For example, I recently spoke with a note investor with the following initial qualifiers: 

NPN / SFR / Current Market Value: $50K - $250K / 2 or 3 BD / min 880 SF / County Population: min 50,000 / Low Crime Rate

Any feedback or insight would be appreciated.  Thank you!