Fairmeadow Capital

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Fairmeadow 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.