Figure out which neighborhoods you’re willing to invest in.
Calculate months of supply - Is this a sellers market or a buyers market? To calculate this, divide the number of homes on the market by the amount of homes sold per month. If the supply is lower than 6, it is a seller’s market, if it’s above 6 then you are in a buyer’s market.
Look for homes in up-and-coming markets with diverse economies. Key indicators of a good neighborhood include a quality school system, low crime rate, ample employment opportunities and easily accessible public transportation.
Follow the “Rule of 70” - this rule states that you should not be paying more than 70% of the total ARV (after repair value) for the purchase price, repairs, carrying costs, labor and other fees.