Springfield, MO Realtor says BP calc doesnt work in this market

[James Bartley]

I met with a realtor today to go over a portfolio that someone was selling off in our area, we definitely cant bite off the entire portfolio for a first deal, So for our first investment to kick start our future, we were very interested in only the 5 duplexes listed at $1 mill, to get close to an 8 cap with good cashflow we would have to offer around $600k and $500k was where we wanted to be after using the BP calc. This realtor said that we would definitely have to take out the 8% P.Management, 10% capx, 10% Maintenance when looking at any properties and that we would be lucky to find a property that had just $100/door after mortgage let alone Vacancy % calculated in. Is there really no market for this and is this something that you just cant use the MLS or a realtor to get into? I have listened to over 15 different BP podcasts and on one podcast there was this one energetic guy down in Florida that was only a wholesale guy and had a ton of effective ways via mailers to get his deals. Will that be the only real way to come across the "deals" that fit the BP calculator? I mean I guess if its a good deal and its listed on the MLS then it would be gone or sniped before it hit the MLS... Where there is a will there is a way, and we are going to make something of this but it feels like our first honest attempt at this was hit with a brick wall, and oh by the way that realtor said that he would be wasting every ones time if we made that offer of $500k