➢ Price-to-Rent Ratio -For rental buy and hold investments in particular, the primary factor the price-to-rent ratio.
➢ Price - However, as an investor you may be limited by the amount of capital you have available, so price is a deciding factor.
➢ Cash Flow - This is one of the most critical market factors. If there is no potential to generate cash flow, there is no point in investing.
➢ Appreciation Potential - A top challenge of real estate investors everywhere is mitigating the risk and uncertainty in both known and unknown neighborhoods and markets.
➢ Age of Property - The older the property, the higher the maintenance costs.
➢ Industry - If you buy real estate in a market that has only one major industry, your investment is at much higher risk.