How do you determine your criteria for your next property? Buy & Hold investors

[David Huynh]

Hello BP,

How do you choose your next investment property from a buy & hold stand point? 

My first couple of properties I got "lucky" because the market was at it's bottom and it was easy to find a renter to slide right in and getting a 10% cap and it was relatively close to my personal residence (10-15 minutes away). 

I will be closing on a 4plex soon that will also have something north of a 10 cap but it is an hour away (which I'm completely fine with) but I feel sooner or later I'll just keep searching for more and better deals further and further away or do not meet criteria.

Do some of you have criteria put into place? In example..

1) 10% cap

2) within 90 minutes 

3) great schools

4) low crime, no sex offenders

5) Cash flow MF - $125/door? $150/door? etc...

6) Cash flow per SFH - $350/door

May some of you post some ideas that I am missing and you've completely used that has benefited you and your success? I do not want to get caught up and miss some pictures. What are your goals and plans for growing your buy and hold portfolio?

[Joe Villeneuve]

The next property criteria is the same for every property I buy, have bought, and will buy.

1 - I must get enough "cash" back at the time of my first REFI (within 1 month...usually less) to move onto the next deal.

2 - At the time of the 2nd REFI (the one I get to hold the property with), I must cash flow a minimum of 300/month after all expenses (including a PM) and the debt on the REFI.

3 - I must recover all the cash I put into the deal within the first year.  This can come from the REFI's and cash flow, but I must get it all back so I have snso cash at risk in my deal after the first year.  Usually though, I have it all back before the 2nd REFI through the 1st REFI and cash flow before the 2nd REFI