Seeking Expert Advice! Hit a plateau with my buying options

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Seeking Expert Advice! Hit a plateau with my buying options

Ken Scarbrough
Indianapolis, IN · Member since 2014 · 46 posts · 12 votes

Hello All!

I want to start by thanking everyone who takes the time to respond to my post.  This is a great community of investors and your assistance is always appreciated. 

I'll try to keep it short.  I started investing in Indianapolis, where I live, in June of 2014. I purchased 2 duplexes before the end of the year.  Then, by the end of 2015, I managed to purchase 1 more.  I currently own the 3 duplexes in total, great cash flow, I vet the tenants, I manage the properties.  

I noticed over the last 3 years that market heated up fast, and it became alarming more difficult to find good deals.  At this point I wouldn't say the market has dried up, but I go months without seeing a good deal.  Occasionally one pops up and its gone in 3 days flat!  

I don't know what to do.  I love investing because, as with everyone, I don't want to work for someone else and Im seeking financial freedom at a young age.  Moreover, I truly LOVE the act of investing.  Its the greatest game on earth!  However I feel Ive hit a road block and I'm not sure where to go from here.

Ive done a ton of research and reading. I have looked into flips, the BRRRR strategy, buying notes, buying turn-key rentals out of state, perusing auctions, attempting to move toward buying commercial properties, and on and on. I have some capital saved up, great credit, solid experience and I am eager to make a move, but there are so many different directions to go I find myself getting lost and Im not sure what to do next.

So there lies my question.  Where do I go from here? Are there any right answers?  I can not be the only investor that has run into this roadblock.  If the deals were still flowing I would just keep buying up multi families that cashflow, but the market says otherwise.  My end goal is definitely commercial apartment complexes, but Im not sure if I have the right pieces in place to make that happen.  

ANY AND ALL ADVICE IS GREATLY APPRECIATED!!!!  Thank you all again for your advice and support. 

Sincerely,


Kenneth Paul Scarbrough, Member, Heartland Home Rentals LLC

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  • David Dachtera
    Rental Property Investor · Rockford, IL · Member since 2014 · 4k+ posts · 2k+ votes
    9y

    @Ken Scarbrough,

    Have you looked into off-market (not listed) properties?

    They can be harder to find, but less competition. When something hits the MLS, it's out there for EVERYONE to see. So, yeah - the competition will be tough, maybe cut-throat even.

    My $0.02 ...

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  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y
    Ken Scarbrough One advantage you'll have as time goes on is that as that down-payment fund continues to grow you'll have more and more options when it comes to deals. Waiting 6 months for the right property is far better than taking 6 weeks to find the wrong one. All of that said, it sounds like what you need is a realtor who is getting you those (gone in 3 days) property listings in 3 hours. Then, at least, you're in the running.
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  • Ken Scarbrough
    OP
    Indianapolis, IN · Member since 2014 · 46 posts · 12 votes
    9y

    @David Dachtera Thank you for the advice.  I have looked into off-market properties but other than making phone calls and driving for dollars I'm not sure how else to find them.  Any suggestions??

    @Andrew Johnson That is sound advice, Im very careful in making sure that the properties fit all of the pertinent requirement to be considered a good rental. I try to do the same with my tenants. My realtor has been very pro active, I have automatic alerts set up on certain areas for new properties via the MLS portal, and I try to do my own research with apps like Zillow and Realtor.com. If you have any suggestions as to how I might catch the good deals even sooner I would appreciate the advice.

    Thank you both for your responses!

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  • Andrew Johnson
    Real Estate Investor · Encinitas, CA · Member since 2016 · 3k+ posts · 3k+ votes
    9y

    @Ken Scarbrough Food for thought, you could always keep a list of those "overpriced" properties that you don't consider a good deal at the listing price.  Have you realtor approach them after 30 days, 90 days, etc. and see where they are at.  You never really know when fatigue starts to set in for the owner but in those moments when property taxes are due, a buyer has backed out, etc. where is some of the good ol' fashioned "I just want this property out of my life!" that you can you might be able to leverage.  An owner might think a $400K offer on a $500K property was horrible in the first 14 days but not really so bad after 140 days.  And a 20% price adjustment might also turn a bad deal into a good one for you.  

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