Start with the outcome you want.
The property is the vehicle. Your strategy determines what “good” actually means.
Long-term buy & hold
Prioritize stable demand, tenant appeal, manageable ownership costs, conservative rent assumptions, and a broad resale pool.
- Single-family homes
- Townhomes and condos where rental rules work
- Low-friction maintenance
- Year-round demand
Short-term rental
Revenue potential can be attractive, but gross income is only the first line of the analysis.
- Verify legal use and HOA rules
- Model seasonality and vacancy
- Include management and furnishing
- Price insurance and replacement reserves
Second home + rental
Useful when personal enjoyment matters, but owner-use dates can collide with peak rental periods. Underwrite the tradeoff.
- Define personal-use priorities
- Check financing classification
- Verify rental limitations
- Separate lifestyle value from investment return
Value-add / reposition
The best opportunities usually have understandable problems with measurable solutions.
- Cosmetic condition
- Poor presentation
- Operational inefficiency
- Deferred but quantifiable maintenance
Do not let projected rent rescue a bad purchase price.
If the deal only works with aggressive rent, perfect occupancy, low maintenance, cheap insurance, and strong appreciation, the deal does not work. Build a base case, a downside case, and an upside case. Make sure the downside case is survivable.
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