Every multifamily investor has a wish list of features they look for in a property. What’s at the top of the pros’ lists? Six expert investors share their must-haves.
‘Good bones’
“Good bones and good location. I like the more untouched properties that haven’t already been renovated [cheaply] and botched up. The more original, the better.”
— Ivana Bramson, designer, creative director and brand manager/ambassador at GLB Properties in Los Angeles
More than one path to success
“When I buy a property, I want to have two exit strategies, such as using a 1031 exchange or simply selling the property, and possibly two investing strategies, like long-term or medium-term rentals, where the numbers make sense. Being able to switch strategies is key in a changing economy and market.”
— Sarah Weaver, real estate investor, coach and founder of Arya Design Services, Arya Management and Invested Adventures
Location, location, location
“I need to feel good about the location. I also look at the cost of homes surrounding the location. If you can get a property for $400,000 to $500,000 per unit surrounded by million-dollar homes, it wouldn’t make sense financially for someone to buy one of the properties near you and build more units to compete against you.”
— Dan Blackwell, executive vice president and broker, CBRE, in Costa Mesa, California
Financial wiggle room
“You need to have enough reserves going in to cover anything that could go wrong. If you have $101,000 set aside, you don’t want a property where you need $100,000 to close.”
— Robert Leonard, investor in New Hampshire and host of the Real Estate 101 and Millennial Investing podcasts
Easy access
“For out-of-state investments, my partners and I take into consideration several factors, such as population growth and major employers. I also have personal criteria: The deal needs to be within an hour from an airport — max — with nonstop flights. I don’t want to fly and then drive three hours to the location. I stand for living life by design, and I encourage other investors to add criteria that work for them.”
— Andresa Guidelli, co-founder and CEO of The Real Estate InvestHER in Philadelphia, Pennsylvania
A good price — and an open mind
“Some people would say, ‘I need to have parking,’ or ‘Don’t buy any buildings with only studios; you need more of a unit mix.’ For the right price, who really cares? For the right price, anything could be a good fit.”
— Juan Huizar, Sage Real Estate president and broker in Long Beach, California
By Lauren Zumbach from Story by J.P. Morgan
Your time is valuable. Process rent payments faster and easier online with Story by J.P. Morgan.
