331: REI "Not All Real Estate is Created Equal".
b'
Stress test for buying real estate:
1. Does it provide cash flow with at least 4-8% a year (if it provides more than 8% you need to look with some magnifying glass cause there is probably something wrong!)
2. Time/money - is this going to be worth your time?
3. Do you love it?
4. Can you exit? Can sell the deal at any time?
If a deal makes 28% but that\\u2019s only $100 that\\u2019s not a good deal.
How many doors/units/tenants you have is the most important number in real estate.
Classes of properties:
A - (could be triple A) new or 1-3 years old
B - 3-20 years old caters to mix of white and blue collar, overall nice mix of cashflow and appreciation, returns of 5-7% before appreciation
C - 20 + years old
D - Inner city, tough markets