Updated almost 9 years ago on . Most recent reply
Buying a property way above comps but cash flows well?
Curious to get some feedback on how people feel about buying a property that cashflows well but seems to be way above the comps in the neighborhood. Does it makes sense to buy a property were the owner is asking 100k over the comps but at the inflated price still can net 2k a month. All and any opinions are appreciated. Thanks
Most Popular Reply
One of the important aspects of rental property is leveraging the one's you currently own to pull cash forward to do other deals. It could inhibit your ability to pull cash out if the appraisal value is below your purchase price. If you have plenty of cash and are looking for a return then this isn't the worst place for your money.
Could you resell it the day after you purchased it and make a profit?
Basically, I believe the "win is in the buy" and if you are overpaying for property your not winning.