All Forum Posts by: Nicholas A.

I see people online who invest on a large scale into residential and single family real estate and I am wondering what criteria they choose to analyse deals.

What methods do they use? 

I’ve noticed that some real estate investors treat the entire U.S. as their market, rather than limiting themselves to a single city or region—often even bypassing their own local market altogether and resulting in buying properties across the country more quickly and in multiple different markets. 

From what I gather, they don't tie themselves emotionally or logistically to one location, which can significantly broaden their deal flow. Instead, they focus on key metrics that make a deal work—cash flow, GRM, cap rate, local landlord laws, etc. Once a market meets their investment criteria, they assemble the right team quickly and move forward when the numbers justify the deal.

This approach seems to dramatically increase the number of potential opportunities compared to being confined to a single market or two and will results in buying properties more rapidly in different markets across the country.

Curious to hear others’ thoughts:

Does anyone here invest this way? How has it worked for you?

I’m trying to gain a clearer understanding of a couple of key aspects related to property valuation and market rents.

While there are plenty of online resources and formulas that outline how to determine market rates in a given area or estimate a property's post-rehab appraisal (such as in a BRRR strategy), I don't believe the process is as straightforward as these guides suggest.

1. Accurately Assessing Market Rents
   1. How can I determine the true market rent for a property, particularly when the available rental data in the area is either outdated, incomplete, or not representative of my specific property?

   For example: If I search within a 0.5-mile radius, but the rental listings or recently leased properties differ significantly from mine in terms of condition, amenities, or layout, how can I still derive an accurate rental estimate?

2. Estimating Post-Rehab Rental and Sale Value
   2. How can I accurately predict what a property will rent or sell for after renovations, especially when comparable properties in the area do not closely match in terms of upgrades, size, or features?

   For example: If I look at recent sales or rental comps within a 0.5-mile radius, but the available properties differ significantly from mine in terms of condition, amenities, or layout, how can I still derive an accurate rental estimate? What methods can I use to refine my valuation?
   

I assume there’s a structured approach to answering these questions—one that goes beyond generic formulas and takes into account the nuances of a specific market. I’d love to hear insights on how to navigate these challenges effectively.

Quote from @Marcus Auerbach:

I suspect you have unrealistic expectations. It's 2025 and not 2010. Real estate is expensive, no matter where you look. You can trade more time or more risk for a slightly better price, but I would not recommend that, especially for a beginner. Actually the opposite, buy the best quality with the lowest risk you can afford.

Instead of finding better deals (unicorns) focus your energy on generating cash. The times we live in offer so many opportunities. That's the up side of 2025. And then buy real estate.

Seems like the deals that are worth it are hard to come by. What are some parameters that you would consider a good deal? I am not worried about the up front price, more so worried about the other numbers: cash on cash return, profit margin after taking into account other expenses like potential vacancy, maintnenace, mgmt.

How hard is it to find a property that meets good metrics? Where is the cutoff line of just throwing the money in an index fund instead? I want to be an investor, not a part time lowly paid property manager and handyman. 

Quote from @Michael Dumler:

@Nicholas A., it's challenging to answer your question without knowing your current experience in real estate investing. Do you already have a couple of deals under your belt, or are you a complete beginner looking for your first property to tackle? If it's the latter, I would advise reducing your target markets to only one specific location. You are spreading your time and energy too thin by trying to take on three separate markets. Moving forward, pick one area to focus on and hone your strategy to source deals from there. If you have REI experience and a few deals operating, how did you go about sourcing and acquiring those properties in the past?

Hey Michael,

Yes I have 2 deals under my belt so far. Chicagoland area, DuPage county. I have been a landlord since mid 2021. For those deals I used a realtor whos well known in the area and brought me some options, one was off market and one wasnt. He is now coming up dry. Which is why I am considering other markets.

Quote from @Jared Smith:

@Nicholas A. what do you consider a "Quality Deal"? This will help us point you in a direction.

something where i can make 300-500 a month after taking potential vacancy, management, and maintenance into account. something where I have a high enough cash on cash return that its justified to put into real estate rather than into an index fund in the stock market. looking for 7-8 gross rent multiplier essentially. I want to be in a county and state where i have decent landlord laws and dont have to worry about losing my property because of 1 tenant not paying rent.

I am trying to expand my list of strategies to find deals.

I did some research and narrowed down my search, spoke to a few quality realtors and nothing came to fruition. Even after trying to pick the better ones.

Now I know I can search online, I can use a realtor, I can send out a mail campaign, I can cold call, I can go to auctions.

Are there any other strategies you would recommend to find deals?

Also I am going to be looking in northwest Indiana, Chicagoland illinois, and Racine area Wisconsin.

So I recently posted about how many realtors to contact and work with. Thank you for everybody thats helped me so far.

I have spoke with about 4 of them.

They all say they will be on the lookout for me, and they are experienced realtors.

I did however get one from here, bigger pockets, and this realtor hasn't worked with investors before, but

is asking me to sign a contract so I am working with them exclusively.

The reason I am asking what to do, is because this realtor with the contract is very new, but I heard that most

realtors will ask you to sign one if theyre serious. Should I keep looking, or try to work with the more experienced ones, or sign with the

newer realtor?

I am trying to figure out how many markets I should focus on at once. From what I see, there are people who invest in different real estate markets all over the country. I also don't want to focus on one market, and not be able to score the right property for who knows how long, and then end up missing out on other locations, as being a long distance land lord is very popular as well.

What if I was to focus on properties in somewhere between 2-5 markets? It seems like if I contacted somewhere between 1-3 realtors in each market, I could end up finding something good for sure.

I have bought 2 rental properties and seen other realtors, and I have never once been presented with an exclusive buyers agreement. Maybe its me. I appreciate all the info though. I just don't want to start working with a realtor and waste time and end up with no real solid prospects for buying.