It is hard to say exactly how I calculate my deals. Each item is unique. If you buy property in good condition in Sweden today, it usually yields about 5-6%. I don’t think that’s good enough. To make my deals a little bit better I’m looking for properties with some development potential. If there is a possibility to add another apartment and increase cash flow, or a few adjustments can make an ugly run-down house prettier. Using these techniques you can often get increase cash flow to about 10%. And then it’s starting to become descent investments.
I also keep an eye out for trouble houses. Problems that scares all other buyers can often be solved easier than you think. You just have to read up on it and make sure you know what it is you’re getting into before you buy so you do not end up trapped.
This real estate business is amazing. Get out there and enjoy it!