Buy and Hold & What to look for, first property in Indiaola, Iowa

[Rob Witt]

So, I noticed that there are four property's (3 are duplexes and one 6 plex) on the MLS. All have tenants. As much as I would like to buy all four, only the 6 plex is offering seller financing (I don't have close to 20% down). However, the 6 plex was up for sale last year and it has been about halfway through the second year of being up for sale. I guess my question is should I find an inspector and try to buy the property or just walk away with out knowing? last year I saw it and my realtor (whom I bought my home through, so no investor thought process) said several people had looked at the property and did not buy it, so I shouldn't either. the other question is if I should look at it what does the process look like? I'll probably have and attorney for the contract to buy should I look at Ken Mcelroy's book for a process? I would post Numbers but I cant upload the Excel sheet.

[Celeste Karan]

Have you actually looked at the property? I don't think the fact that other people didn't buy it is a valid reason for rejecting the property off-hand. Who knows what the situations were. If it's been on the market for a long time, it might not have anything to do with the condition of the property, but rather, it's lack of strategic placement in the market (which is a fancy way to say it's overpriced). I would definitely investigate it if you think the numbers might work. Due diligence is so important. Take the time to find a great inspector and get them out there to go through it.  I would suggest having an agent who understands investment properties to guide you through the process, if you're new.  Find the spot at which the numbers work for you and there's your maximum price. Will the property likely need a new roof, mechanicals, etc. in the next few years? Factor those things in to the numbers and negotiate. If the seller is willing at that price, then you have a deal, if not, you walk away knowing you saved yourself the headache and you got some education.