Real Estate Investment Rubric
Real Estate Investment Rubric
This rubric provides a structured framework for evaluating real estate investment opportunities across key criteria such as location, property condition, rental income potential, return on investment, and market trends. Each criterion is assessed on a scale from 1 to 5, with descriptors indicating the quality of each aspect of the investment opportunity.
|
Criteria |
Excellent (5) |
Good (4) |
Fair (3) |
Poor (2) |
Very Poor (1) |
|---|---|---|---|---|---|
|
Location |
Highly desirable area with strong growth prospects and high demand |
Good location with potential for growth and demand |
Average location with some growth potential but some concerns |
Undesirable location with little potential and low demand |
Very poor location with high crime rates and poor amenities |
|
Property Condition |
Excellent condition with modern amenities and minimal maintenance |
Good condition with minor updates required |
Fair condition with noticeable issues requiring investment |
Poor condition with significant repairs and renovations needed |
Very poor condition requiring extensive renovation and repairs |
|
Rental Income Potential |
High rental income potential with strong market demand and competitive |
Good potential for rental income in line with market averages |
Moderate rental income potential but may face some challenges |
Limited rental income potential due to low demand or undesirable |
Very low rental income potential due to high vacancy rates or low demand |
|
Return on Investment (ROI) |
Excellent ROI with high potential for returns exceeding market averages |
Good ROI with solid potential for returns meeting market norms |
Fair ROI with moderate potential for returns slightly below market |
Poor ROI with limited potential and significant risk factors |
Very poor ROI with negative potential and high risk factors |
|
Market Trends and Growth Potential |
Positive market trends and strong growth prospects indicating |
Favorable market trends and potential for growth |
Stable market with moderate growth prospects but some concerns |
Declining market trends and limited growth potential |
Very poor market trends and negative growth prospects |
