Your quick-reference guide to defining and refining your investment criteria.
Use this checklist before every deal to stay disciplined, efficient, and profitable.
🏠 1. LOCATION
Goal: Stay close enough to control your projects.
✅ Buy within 1–2 hours of your home base
✅ Confirm at least 3 comparable recent sales (comps)
✅ Favor urban areas over rural for data reliability
✅ If your area is dry, move or expand your search radius
Quick Tip:
“Urban = Predictable. Rural = Guesswork.”
🏘️ 2. PROPERTY TYPE
Goal: Balance profitability with control.
✅ Start with single-family or 2–4 unit multifamily
✅ Avoid land, condos, and large commercial early on
✅ Focus on owning the land, not just the structure
Remember:
McDonald’s uses burgers to buy land. You’re doing the same with rentals.
💰 3. PROPERTY CLASS
Goal: Match your property class to your risk tolerance.
| Class | Description | Ideal For |
|---|---|---|
| A | Upper-middle / luxury | Later diversification |
| B | Middle class / “Walmart” crowd | ✅ Best for beginners |
| C | Working class / Section 8 | Steady cashflow |
| D | Neglected / slumlord properties | Avoid early on |
✅ Prioritize B-Class neighborhoods
✅ Use C-Class for cashflow stability (Section 8)
📏 4. SIZE (SQUARE FOOTAGE)
Goal: Minimize cost while maximizing rentability.
✅ Ideal range: 1,000–1,600 sq. ft.
✅ 3 beds / 1–2 baths = sweet spot
✅ Rent is set by bedrooms, not square footage
✅ Smaller homes = lower maintenance, higher ROI
Flip Tip:
Bigger houses may profit more per project, but they’re riskier to hold.
🧱 5. AGE OF PROPERTY
Goal: Know what era you’re dealing with.
| Era | Years | Notes |
|---|---|---|
| Historic | Pre-1950s | Cool, but unpredictable construction |
| Modern | 1950s–2000s | Reliable systems and codes |
| New Builds | 2000s–Present | Rarely a deal unless distressed |
✅ Buy modern for balance
✅ Avoid historic unless you deeply understand construction
🔧 6. WORK LEVEL
Goal: Match project size to your experience.
| Level | Description | Notes |
|---|---|---|
| 1 | Wholetail | Clean & list — minimal work |
| 2 | Cosmetic | Paint, floors, fixtures |
| 3 | Gut Renovation | Full systems (MEP) replaced |
| 4 | New Build / Add-On | For experts only |
✅ Start with cosmetic flips
✅ Move up to gut jobs once you have contractor relationships
🎨 7. STYLE
Goal: Don’t get distracted by design.
✅ Ignore architecture preferences
✅ Base all decisions on data, comps, and margins
“Style is for HGTV. Data is for investors.”
💵 8. PRICE POINT
Goal: Buy below the median home price in your market.
✅ Median = your anchor point
✅ Buy below median for safety and liquidity
✅ Avoid high-end flips until experienced
Formula:
70% of ARV – Repairs = Max Offer
Safety = Longevity. Stay in the game long enough to win.
🎓 9. SCHOOL DISTRICT
Goal: Use it only to check your comps.
✅ Make sure your comps match the same school district
✅ Don’t overvalue it—it’s already baked into the price
📈 WHY THIS MATTERS
Once your buy box is clear:
- You stop overanalyzing bad deals
- You build instinct and speed
- Agents and wholesalers take you seriously
- You market smarter (“I buy 3/2s under 1,500 sq. ft. in East Ridge.”)
🧭 ACTION STEPS
- Research your market on Zillow and MLS.
- Pick 3 neighborhoods to specialize in.
- Memorize price per square foot and average rehab costs.
- Build your ARV radar using the 70% rule.
- Create your direct marketing flywheel.
- Mail to specific streets.
- Reference past flips.
- Build reputation by repetition.
⚡ Quick Reference Summary
| Factor | Ideal Choice |
|---|---|
| Location | Urban, within 1–2 hours |
| Property Type | Single-family or 2–4 unit multifamily |
| Class | B-Class (plus a few C-Class for cashflow) |
| Size | 1,000–1,600 sq. ft., 3 bed / 1–2 bath |
| Age | Modern (1950s–2000s) |
| Work Level | Cosmetic to moderate renovation |
| Style | Irrelevant — follow the comps |
| Price Point | Below median in market |
| School District | Verify, but don’t overweigh |
✅ Print this out. Tape it to your desk. Memorize it.
This is your Buy Box Compass — it keeps you from wandering into bad deals and reminds you exactly what a great one looks like.