New to investing and ready to rock n' roll! - Peoria AZ Area

[Randy Smith]

I'm new to the REI world, and I am super excited about getting started. I've read Brandon Turner's The Book on Rental Property Investing, Rick Dad Poor Dad, and Cash Flow Quadrant, and I've listened to about 30 of the Bigger Pockets podcasts. I've started analyzing properties, and I keep running into the following challenges: 1.) Most properties don't show positive cash flow unless I offer 80% of asking price, and I'm scared to offend owners with that low of an offer and 2.) If I offer close to asking price, my calculation for CapEx usually makes the deal to thin to risk on my first deal. (FYI - I built an Excel sheet to do my analysis based on Brandon Turners's guidance in his book listed above, and I'd be happy to share with anyone that would like to see it).

Question: Should I base my numbers and potential offer price at 80% of asking price, or does it make sense to offer closer to asking price and consider buying a home warranty to cover any CapEx issues that arise with the rental.

Sell like crazy, and I'll see you at the top!