What determines a good deal?

Hello all,

For those of you that are active buyers, I ask you this. What determines a good deal? I know that is a very vauge question. Are you looking for a % of fmv or a $ amount under fmv. I have heard everywhere from 60-80% of fmv but what are your bottom line figures. I understand that there re many variables, I am just looking for general rules of thumb.

Thank you

The answer to this question is determined by what your plans for the house are…

As a “buy-and-hold” investor it is a ‘good deal’ if I can get into it easy, get it rental ready quickly and easily, find a renter quickly, and make a good positive cashflow on it…


If you are looking to buy and hold you pick a threshold for your positive cash flow. What is comfortable and realistic for you?

I personally try for 1500-2000 per unit per year because I use low or no money down financing techniques. If I had cash to put down, I would look for higher cash flow.

If a property I am am interested in dows not cash flow positively at or near asking price, I rarely view it.

If it does cash, flow. I check out the neighborhood, the repairs needed and the rental market in the area. If all is positive, I make an offer.