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Our System: Solid Properties in Solid Areas

How We Evaluate Investments

At American Eagle Equity, we focus on Midwest single-family properties suited to long-term buy-and-hold ownership. Our approach starts with the market, then moves to the neighborhood, property, rental fundamentals, and long-term investment potential.

We Use 10 Core Criteria

when evaluating cities, neighborhoods, properties, and tenants.

  • 1. Landlord-Friendly States

    We focus on states with laws that provide a workable environment for residential landlords, including the landlord-tenant and eviction process.

  • 2. Proven Rental Demand

    We look for neighborhoods with established, consistent rental demand and a history of stable rental activity.

  • 3. Solid Neighborhoods

    We favor established working-class neighborhoods with housing and community characteristics that support long-term rental demand.

  • 4. Stable Tenants

    Tenant income, rent affordability, and rental history are important considerations when evaluating rental stability.

  • 5. Cash Flow Potential

    Our historical criteria have included properties priced around $90,000–$110,000, with a target of 8%+ net annual cash-on-cash returns. Actual returns vary by property, financing, expenses, and market conditions.

  • 6. Practical Renovations

    We renovate properties to a standard appropriate for the neighborhood, supporting competitive rents without over-improving the property.

  • 7. Diverse Local Economies

    We look for cities and neighborhoods supported by diverse economic activity, employment, and sustained housing demand.

  • 8. Affordability

    We consider the relationship between housing costs, rents, employment, and the overall cost of living.

  • 9. Strong Neighborhood Characteristics

    Schools, amenities, housing conditions, and other neighborhood factors can influence rental demand and long-term appeal.

  • 10. Long-Term Value Potential

    We consider market conditions, neighborhood fundamentals, property characteristics, and other factors that may support future property value appreciation.

See The Bigger Picture

A low purchase price does not automatically make a property a good investment. We look at how market, neighborhood, rent, expenses, financing, cash flow, and long-term value work together.

Explore Our Approach