Best Ways for Newbie to find Discounted Properties

[Michael Shahan]

Hi All,

Newbie here, so apologize if this question has already been asked and answered a million times (and in which case you can just point me to the discussion thread).

My question is… I understand the concept of making your profit when you buy, but how realistic is it really for a new investor to find a 10% - 40% off property to buy? I am looking in the Montgomery County, MD area (northern DC suburbs) and I am not really interested in distressed properties or expensive rehab jobs. I’m looking at townhouses listed on Realtor.com in the $200K-$250K range, but I’m having trouble wrapping my head around the concept that any of these properties would sell in the $150K-$175K range without the deal being 100% all cash (which I don’t have as a new investor… although I could potentially swing a 20%-25% down payment).

My strategy is Buy and Hold and I don’t mind some repairs to get the place up-to-snuff, but I’m not really into any true “fixer-uppers”. What are my best options?

Thanks in advance.