• We buy properties in low-priced, undervalued markets. These markets have already bottomed out, which makes them much less susceptible to poor market conditions and can only see appreciation in the long-term.
• We stay away from 'hot' markets that can be unpredictable and where competition drives up the prices. These markets are more risky and overpriced. Achieving positive cash flow in these markets is challenging, because the rent prices are similar, but you are overpaying for the properties hoping to see faster appreciation.
• We buy in markets where there are large rental populations. There are a high number of renters in areas where foreclosures are high for a few reasons: the high number of foreclosures puts previous homeowners in the tenant pool and the tightening of the sub-prime lending laws has put poor credit borrowers back into the tenant population as well.
• Our target properties have multiple exit strategies: rent, lease-option, or retail sale. This allows us to capitalize in a strong or soft retail housing market. Because you will own the property retaining 25% equity, you have a better chance of selling the property even in a poor retail climate. Lease-options are becoming more common in our markets because homebuyers with marginal credit can no longer get approved for a loan but still want to own a home.
• We believe that investment properties should pay for themselves; therefore, we buy in markets where a small initial investment makes it possible for the rent to cover the mortgage. Your Southcrest investments can quickly become income-producing assets. This means your return on investment is very strong even in the short-term.
• We believe in a long-term investment strategy (5+ years). We discourage the idea of "flipping" these properties for a quick profit. Long-term wealth is most achieved by owning real estate not selling.
• Our remodeling strategy is very different than most investment companies. We want the best looking houses on the block to attract the best tenants and highest possible rents. We also want our properties to be as maintenance free as possible.

Investors can build up rental property portfolios more easily in down markets -- if their initial pay out is smaller, they can more likely turn a profit on rents. CNNMoney.com