Should I buy a property that’s over its market value?

[Andrew Bravo]

Hello fellow bigger pockets members, so i’ve been on the hunt for my first rental property for a few months now. I spoke with a real estate agent and he’s offered to sell me a duplex that he and a partner own for $150,000. My issue is that I’ve found out recently that the market value of the property is $76,000 according to my local county website. I feel like at 50% above market price I would be paying too much for the property. If the numbers work out for me should it matter?

[Joe Villeneuve]

Originally posted by @Andrew Bravo:

@Joe Villeneuve

Yeah sorry, what I meant is how do I know what is too much to pay for a property when there are no accurate comps to compare to?

 You don't.  I'm experienced at it, but if I wasn't I wouldn't buy it until I could get the required comps.  I also said not to rationalize properties that don't match the criteria I've given.

The goal is to make money. The goal isn't to buy properties. That means you must buy "deals". You won't make money if you don't have, or are using faulty (or rationalized) information. Analysis is the most important job of the REI. It's how you define a deal...so don't screw it up. Do it right.

Sometimes the best deals you make, are the ones you don't make.