Just Starting out, bad numbers?

[Justin Matesic]

Hey all, so I'd just gotten started on here, but have been interested in REI for a long time. I've watched youtube, and read blogs, but finally decided to jump in.

So one of the things I've been doing is looking over the MLS, and specifically trying to find properties that already have tenants, and are within my price range (leveraged cash deal). Seems like any way I crunch the numbers, most of these deals are turning out to be at least somewhat profitable. (Usually in the 7-8% range for ROI).

Of all the properties I've looked at and done the numbers on, there's only been a few that turned out to not look good (on paper at least).  Granted I know that 7-8% isn't great for some people, but I'd be happy taking that for my first property. 

On the other hand though... it kind of feels like I'm probably doing something wrong here.  Like why would people be selling properties that have a positive cash flow?

[Aaron K.]

If you show us an example of your math we may be able to point things out that you are overlooking if you are.  Also you could just be in an area where the numbers work a lot of the time.  The reasons why people sell vary, some don't want to deal with tenants, some want to buy something bigger, some are moving away, divorces deaths etc.