Securing the right property is the foundation of any successful fix and flip project. To help you identify the ideal opportunity, we follow a straightforward 5-point guide designed to pinpoint the best deals for maximizing your profit while protecting your investment.

Our focus is on funding projects that offer the greatest potential for success. As such, our criteria are based on these five key points:

1. Property Type: Non-owner occupied residential properties that have a minimum of 1 unit and maximum of 4 units. This is vital because properties within these parameters attract a broader segment of the market, including Federal Housing Administration (FHA) buyers. This broadens your appeal across various demographics.

2. Sales Price: The total loan amount does not exceed the FHA loan maximum for your investment property’s market. FHA loans make home ownership more attainable for first-time buyers who may face challenges with conventional lenders. This not only accelerates the sale of your property but also expands your reach to a wider pool of potential buyers.

3. Size of the House: Properties under 2,800 square feet are more appealing investments because they typically incur lower repair and maintenance costs compared to larger properties. Smaller properties are also generally simpler and more cost-effective to renovate and resale for profit.

4. Property Features: A property with up to 5 bedrooms and 3 bathrooms is an excellent investment opportunity because it appeals to two key market segments anticipated to drive the real estate market in the next five years: millennials, who are seeking smaller homes as they begin their homeownership journey, and boomers, who are looking to downsize.

5. Size of the Property: Properties of 1/2 of an acre or less offer outstanding investment potential, as they appeal to key market segments—millennials and baby boomers—who seek homes with minimal maintenance. Conversely, properties exceeding half an acre require more upkeep and incur higher maintenance costs.