Constant negative ROI's on prospects

[Steven Whitehead]

Hey everyone,

So I've been scouting around my area looking for good deals on potential rental properties, however the monthly ROI calculation I've been running keeps coming back negative for almost every property (except for one for-closure I've found). I've gone over the calculation again and again and it's solid, even under ideal turnkey circumstances with unrealistic mortgage/insurance rates, the ROI's are negative.

So my question is do you rental investors bid under the asking price? I know the (price after renos*.7)-reno costs=bid equation. Do you pitch that number and hope for the best? If so, what if there are other bids on the property that are already above that number?

Or is my market just too hot at the moment?..