Should You Ever Pay Above Market For A Cash Flowing Property?

[Derek Caffe]

I'm conflicted BP. There's a legal triplex I'm looking at that would cash flow with my financing, market rents and expenses, BUT it's priced at or above market with at least $25K in renovations conservatively. I just can't find the comps to support the price in its current condition or even ARV. Considering my strategy is buy & hold, is there ever a time you would pay above market if other markers (cash flow per unit, cash ROI, ROI) are met?

P.S. - I'm already certain there will be the HELL NO crowd, but I'd like to ask anyway.

[David Dachtera]

My first thought is: what is your primary goal?

If the income covers expenses, debt service, etc. and still leaves a profit, and cash flow is your goal, that would be a fit in my book.

If you're seeking equity, and have cash to put down on it, it could still work.

Sorry to be non-committal, but these are questions you need to ask yourself: what are your goals for his property and does the overall situation meet those goals?