Investor Buy Box Criteria
This outline details the two primary acquisition strategies and associated investment criteria, presented in a checklist format for easy screening.
1. Takedown Method (Move-In Ready Acquisitions)
Strategy Focus: 🏡 Low-risk, fast turnover of immediately habitable/marketable properties.
Required Criteria:
- 🛏️ Bed/Bath: 3/1 or 3/2
- 📐 Minimum Square Footage: 1,000 sq ft
- ✨ Condition: Move-In Ready Condition
- 🚫🧑 Occupancy Status: Vacant Property
- ⛔ HOA: No HOA
- 📸 Photos: 25 photos or more
Financial Requirements:
- 📈 AS-IS Value: Over $200,000 (Preferred: $230,000 or higher)
- 🧹 Clean Out Budget: Minimum clean out of $3,000
Valuation Formula (Buy Box Formula):
Using 3 SOLD Comps and 3 Listed Comps / 6 = Average Price Per Sqaure Foot x Subject Property
- 🏘️ Comps Used: 3 Sold Comps and 3 Listed Comps
- ➗ Formula Type: Based on Price Per Square Foot (PFSF) Average
- 🔢 Multiplier: PFSF is multiplied by Subject Property Square Footage
2. Fix and Flip Projects (Rehab Acquisitions)
Strategy Focus: 🔨 Moderate renovation projects secured using the 70% ARV rule.
Required Criteria:
- 🛏️ Bed/Bath: 3/1 or 3/2
- 📐 Minimum Square Footage: 1,000 sq ft
- 🚫🧑 Occupancy Status: Vacant
- 📸 Photos: 25 photos or more
- 🤝 Acceptable Seller Types: Tired Landlord, Absentee Owner, or Pre-foreclosures
Financial Requirements:
- 🎯 Purchase Price Range: $150,000 - $350,000
- 🏗️ Maximum Rehab Budget: $55,000
Maximum Allowable Offer (MAO) Formula:
The MAO is calculated based on the standard 70% ARV rule, subtracting the cost of repairs and the assignment fee:
70% of ARV-Repairs-Assignment of $10,000 = MAO
Formula Variables:
- 💸 ARV: After Repair Value (Estimated Resale Price)
- 🛠️ Repairs: Estimated Cost of Rehab (Maximum $55,000)
- 📝 Assignment Fee: A fixed $10,000
How to Submit Deals:
Please use the following template when sending us BIRD DOG deals. For instant replies for your submissions please send a text to me "DEAL" to 814-831-9853