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Updated almost 6 years ago,
The barrier of entry seems way too high
I've been trying to get started on real estate investing for almost a year and a half now. I've been doing research on the basics, trying to learn specific markets that look promising, and even contacting agents to help me buy my first rental property. And so far, I still haven't bought anything. The pros make it sound easy. They keep bragging about how they buy everything at 30% below market value, and their CoC return is over 25%... and yet I can't find anything that cash flows. At all. I have no idea where they get their magical deals from. (Unless I look at really cheap properties, but then I hear about the nightmare tenants associated with them...) People keep telling me not to settle for a mediocre purchase. Well, I was about to "settle" for one that "only" gives 6% CoC return... only to have my agent tell me I messed up the calculations and the real rate of return is like -13%... so I can't even find a property to "settle" for! Go figure.
I also have no idea how to figure out the market rent for a property. (And the ARV for that matter, but the rent's more important.) I was told that Zillow is not reliable and I should contact a property manager. Well I tried doing that and most of them just ignored me. Even the ones that didn't just gave some vague useless advice. Actually, one of them told me that they just look at Zillow as well! Awesome.
I also keep hearing that the market is overheated right now, so I should be looking at off-market properties for below market value, using the BRRRR method, etc. Except I'm trying to buy my first house as an out of state rental. That's already a huge hurdle, if I say so myself. The last thing I want is to make it even more complicated and more likely for something to go wrong.
I'm sorry for sounding so frustrated right now. It seems more and more like real estate is some exclusive club and I'm an outsider trying to get in. Because nothing I've tried has worked, I keep getting vague cryptic advice, and I have no idea what to do anymore.