how can i find good deals on 3-4 fam properties?
here in Manchester, CT, all of the mls postings are priced too high to make any money. example:
just looked at a nice 4. all 2br’s. can get (on the high end) $800/unit. need very little work. listed at $359,000. and thats one of the cheapest in town. best case scenario, not figuring repairs and vacancy’s, i could make about 7-800/ month IF they give me a deal on it…
is the MLS the wrong place to look for deals? can my real estate agent find me a deal? or is there another way to find a property that cna make me some money in a high priced area???
please help me out…
As you correctly stated, this property is a BIG loser. Throughout the United States, operating expenses run 45% to 50% of gross rent. So, in this case, operating expenses would be about $1600 per month, leaving $1,600 to pay the mortgage. Unfortunately the mortgage would be about $2,600, giving you a loss of about $1,000 per month. Many (most) newbies have not done their research and do not understand these expenses. This is good news for you because it means that there are always many new landlords that are going broke! All you’ve got to do is find them. Join your local REIA - there are a lot of great deals there! Check out FSBOs on multi-unit buildings. Look for foreclosures on multi-unit buildings. Get out there and meet people!!!
You may try looking in other areas also. I know many people who want to invest in pristine areas. The rents aren’t high enough to cover the payments. So they tend to look in areas that may not be as good areas to live in but are a good investing area.