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← Back to ResourcesFairmeadow Capital Deal Criteria
Our deal criteria are designed to focus on sustainable cash flow, strong fundamentals, and long-term growth. We focus on smaller residential properties that allow for value creation through hands-on management and strategic improvements.
1. Property Type
- Duplexes, triplexes, and 4-plexes (1–4 units)
- Occasional single-family homes if located near existing holdings
- 5–12 unit properties considered on a case-by-case basis
2. Market Criteria
- Located in Cleveland, Ohio (initial focus)
- B– and C+ neighborhoods with signs of stability or revitalization
- Near major employers, transit lines, or hospitals
3. Financial Targets
- 8–12% cash-on-cash return (stabilized)
- Cap rate ≥ 7% at purchase
- DSCR ≥ 1.2 if using debt
4. Value-Add Opportunities
- Below-market rents or mismanagement
- Cosmetic or light-to-moderate rehab potential
- Layout or operational improvements that increase rentability
5. Deal Size
- Purchase price between $100,000 and $500,000
- Targeting equity investment per deal of $30,000–$150,000
- Larger deals considered with joint ventures or future capital partners
This criteria may evolve over time, but our focus will always remain on well-underwritten properties with measurable upside and downside protection. If you’re a wholesaler, agent, or investor with a potential deal, get in touch.