How do you know if you have a good deal for a buy and hold

[Jordan L.]

How do you know if you have a good deal for a buy and hold? What should I be looking for? I have Brandon formula and others, but when I jot the figures, how do I know if it is a deal or not? What should I be aiming for?

[Martin Zawarski]

All my homes that I have bought over the last 14 months (8 homes) I always ask one question first. Is this a home and neighborhood I could see myself living in? If its YES then I look at the details. There are many good deals out there. I am looking for lets call it a B+ home and neighborhood. I manage and do most of the work on my investments and typically spend on average $25,000 on each home. I make $300 to $500 per home. I have managed apartments like forever so it is no big deal for me to handle this. All the homes are 15 minutes from my home. I don't get caught up in all the formulas, the 1% rule the 50% rule, this rule that rule.

I look for solid investments that are undervalued, I add value to them and plan to keep for my retirement. Even after I do all the rehab the house costs me less than what market value is (according to my MLS CMA and I use Zillow a bit)

Life is indeed good! I will never sell, well maybe, but I tell my wife, you will outlive me and when you need money, sell off a unit and take the profit. Lets hope that is at least 20 years down the road.