Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 54%
$32.50 /mo
$390 billed annualy
MONTHLY
$69 /mo
billed monthly
7 day free trial. Cancel anytime
×
Take Your Forum Experience
to the Next Level
Create a free account and join over 3 million investors sharing
their journeys and helping each other succeed.
Use your real name
By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions.
Already a member?  Login here
Buying & Selling Real Estate
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated about 1 year ago on .

Account Closed
  • Investor
  • Scottsdale Austin Tuktoyaktuk
4,153
Votes |
4,205
Posts

How To Know You Have A Good Deal

Account Closed
  • Investor
  • Scottsdale Austin Tuktoyaktuk
Posted

A Good Deal means different things to different people.

After many years of investing, A Good Deal to me is one that is:

1. Bought "off market" so I can buy below market price. I like this one because I have "instant equity" that protects me in the event of declining values

2. It needs to cash flow at $200 a month - I don't like negative cash flow for the sake of "appreciation". 

3. I don't buy for "future appreciation". It takes time and money to see if a property will appreciate. Between risk, tenant hassles, vacancies, mortgage payments, property taxes, insurance payments, replacing a roof, water heater and so, it takes a lot of appreciation to actually get ahead on that. Sometimes it pays off, sometimes not. So I don't gamble on it. 

I've been around a while so I understand that when prices drop, they can drop quickly and takes years to rebuild in inflated dollars. 

4. I buy in decent neighborhoods where you can walk at night. Dicey neighborhoods are harder to keep rented with good tenants Decent neighborhoods are a lot less hassle.

5. These are readily available, so I don't worry about finding "good deals".