Many different ways to choose markets and properties for investment. After more than 15 years each investing outside of our primary real estate focus area in California here are the basic objectives we have found to be most profitable when investing.
- Stabilize the investment quickly – desire investment that are up, running and making money quickly.
- Long Term occupancy – want tenants who will stay for years. This lowers vacancy and turnover expenses, increasing returns.
- Reduce tenant created repairs – want tenants who care for the property, not just live in it.
- Reduce number and cost of repairs – better maintained properties require fewer repairs, and higher relative rents means repairs cost less of the monthly rent.
- Reduce owner involvement – when owners are far from the property having good property manager is crucial to overall success.
- Minimize complexity – the more complex a deal is, the more moving parts, the more places there are to lose money.
- Minimum out of pocket costs after escrow – this raises the overall cash on cash return.
- Provide higher ROI on money invested – choosing markets and properties that provide higher returns when compared with others of the same type.
Here are our criteria for choosing a metropolitan market area to invest in, and for choosing properties (SFR & 2+ Units).
