Define your Criteria! 

As many investors have already discovered, real estate can be a wonderful component to your investment portfolio. Just as in the stocks and mutual funds markets, people have different criteria to define what makes a good investment. Your criteria may differ from my criteria. Defining our criteria is a good first step to take as a real estate investor. You will define your criteria based on your income, current portfolio, time until retirement, level of involvement required in managing your investments, required return on your investment, decision to whether to leverage your investments and more. Your criteria could include what neighborhoods you are familiar with, what types of properties you want to hold, and several other parameters.

I am always willing to consult with newer investors to help them define the criteria they will use to invest. Alternatively, if you are already a seasoned investor who knows their investment requirements, give me a call and put me to work looking for your next investment.

What are my criteria? At the moment, I am looking for residential properties (condo in strong associations or single family or duplex), with 2-4 bedrooms, from Edwards to East Vail, within .5 miles of a bus stop, and in need of minor repair. Additionally, based on current rents the properties should provide a positive cash flow at no more than 25% down with a 30 year fixed mortgage. I am finding that two and three bedroom properties with a "lock-off" apartment are among the best options. If I find investments outside of these criteria, does it mean they are poor investments? No, it simply means they are not MY ideal investment. I have numerous friends invested in properties that don't meet my criteria who are quite happy with their investments. An example would be a rental property in Eagle. The only reason I would not consider this for myself is that I want to be within 10 minutes of my properties by car because I manage my own properties. If I were to use an outside manager, my criteria would change.