Criteria that makes a Deal Good

[Demarcus Crump]

Hey BP family, new investor here super excited and seeking knowledge to help others as well. What are some things you all consider that makes a deal good enough to consider??

[JD Martin]

For me, as far as a "good deal" and not just "a deal" - 

1. All in @ 70% ARV. This is my purchase+rehab+closing+holding. This is getting extremely difficult at this point in the market. My last property is about 90% all in. So I'm close to the sidelines for now.

2. Cash flow of $400 or more, net. 

3. The right kind of property. I look for properties that are built a specific way (SFH). Your costs are not only what it costs you to rehab but what it costs you to own it long term. Metal roofs and brick construction cost you less over time than asphalt and vinyl. Just as an example.

4. Property has a good exit strategy. If I have trouble renting it, want to get something else, or just get sick of owning it, I can offload it with minimal aggravation. That usually precludes houses that are near undesirable uses. Just because something is cheap doesn't mean it's worth buying.