As a first time investor, I’ve been going to look at properties every week. I’ve found a couple nice houses/duplexes I’m interested in offering. The only problem with these houses is there’s usually 8-10 other houses for sale on the same street (maybe 40-50 houses total).
How do you guys usually go about offering in these situations? Do you wait longer? Offer really low?
Thanks
Jeff
What are you going to do with them? More importantly, what are the numbers. Of course, you will want to buy at a BIG discount in any case.
Mike
Well, I would like to buy one at a BIG discount and rent it out.
My assumptions were: Since there’s so many houses for sale on the street, they’re obviously not selling very quickly and one of the 10 probably wants to get out ASAP.
I live in Toledo, OH and I believe the market is going to get much worse before it gets better. I’m thinking if I wait a couple more months, the deals will become even sweeter.
Just curious if you guys would wait longer or offer extremely low.
Thanks.
Jeffelite,
I agree 100% with you that things here in Ohio will get much worse before they get better. However, I would not wait to buy rentals. Just buy at a BIG discount and ensure that the property will cash flow using real world expense numbers.
Mike
Jeffelite,
I agree with propertymanager just ensure you’re buying at a big enough discount. Doing so know will ensure that in a year or so from now when the market is worse then it is currently you will have still bought correctly.
I too am in Toledo and there are plenty of deals out there right now. It takes some time and a lot effort but you’ll find them.
Cake
Well if your looking to buy at a big discount and there are 40homes for sale on the block and if they all seem to look the same, get the numbers on all of them. Then start contacting the owners and see who is willing to deal. Ask if they own multiple homes on the block also and selling them as well…
Let them know what the neigbor is selling for… If they want it sold they need to do something different
It might also be helpful to do a tax record search and find out how many of the owners in the area have owned for 15+ years, I have seen the rent market drop out in certain areas then the landlords who own there places free and clear drop area rents down so low that most people with mortgages cannot afford to stay afloat for long.