When we evaluate a property for acquisition, we examine the following criteria:
- ARV – What’s it worth after all repairs are made?
- Repair Costs – What will it cost to bring it up to snuff?
- Carrying Costs – How much will it cost to carry the property until it’s sold?
- Taxes & Other Liens – Are there any outstanding liens, judgments or other encumbrances against it?
- Local Comps – What are other properties similar to it selling for, these days?
- Sales in the Area – How brisk are sales in the area? Once the property is prepared for sale, can we expect it to sell?
- Past Use History – Does the property have a history of active use? Before a burned-out or otherwise distressed property sat vacant, was it used regularly?
- Development Potential – Is the property situated in an up-and-coming area? How up-and-coming is it?
- Opportunity Zone Placement – Is the property in an Opportunity Zone, making it more attractive to investors seeking capital gains tax relief?