Analysis Paralysis or just haven't found a working deal?

[Aldo Fazio]

Hello BP people! I'm new to investing, though I have been reading about for at least 1 to 2 years now. I feel like I'm ready to rock. I'm hooked up with a couple realtors in the market where I'm shopping, which is Kansas City. I chose this market mainly because my wife is from there, and because it's affordable compared to where I live in Guerneville, California. I'm certainly qualified and getting pre-approved for a loan, though I've thought about purchasing cash (up to $100K or so). I've been talking to a PM that seems capable and experienced and is also a BP member.

Now, I know analysis paralysis is a thing, and I've been analyzing lots of deals. The thing is, the numbers just aren't working well. Is it really this difficult to find what I'm looking for? I suppose I should be more patient, but I don't want to be "paralyzed" by analysis. I also don't want to drag my agents all over the place looking for a deal that doesn't exist.

My strategy so far is to buy a nice, rent-ready SFR, in a nice area, that would be desirable for a working class family. I'm hoping to attract good tenants and also get good appreciation. With interest rates and prices where they are, I'm planning to use a larger downpayment just to get it to cashflow by keeping my mortgage and other expenses lower than the market rent.

If anyone has comments or suggestions, I'm all ears, and I would greatly appreciate it!

Thanks in advance for your expertise and wisdom!

~Aldo Fazio, General Contractor

[Doug Smith]

Hi @Aldo Fazio, Yes, Paralysis by analysis is a real thing, but that being said, with interest rates, taxes, and insurance shooting through the roof...and coupling that with insanely low inventory...it's really hard to find a deal that works right now. If you've created a model, you're working the math, and your spreadsheet is spitting out numbers that don't work for you, don't pull the trigger. It's the dealt that you don't do that make you money more than the deals you do. What I mean by that is I've seen so many people push a bad deal that they end up losing and it sets them back. Two years ago, cash flowing properties were everywhere. That's not the case now. Don't deviate from your model just because you feel you're not finding deals. That's what everyone is feeling right now. Stick to your principals and trust your math. Athough it's really common, your post doesn't sound like your suffering from PBA (I'm trying to sound like a drug commercial), I think you're being smart.