Buying $150k properties using Bank Loan with 25% down payment

[Sunshine Bizz]

Hello BP awesome community. I am in the process of buying $150k properties using 25% down payment. I have done the math, i will break even without any cash flow. 

Question ---> If that is the case and i will build asset in 10 to 15 years after paying it down. Should i focus only on appreciation for this type of transaction? Should i only invest in areas with best schools that has a track record of more appreciation than others?

Question ----> What types of properties would you buy from Bank's money? 

Thank you

[Jeff Copeland]

Originally posted by @Bill Goodland:

Most newbies are surprised when they discover that 99% of MLS properties are not deals or good rentals.

That's an interesting observation Bill, and probably not far from the truth. But I just did an MLS search, and there are 497 single family homes under $200k, and another 28 MFR properties under $200k in the MLS in my county (Pinellas) alone. According to your math, that means there are 52+ potential great deals sitting on the MLS right now waiting for the right investor to come along.

And I would further challenge that a very high percentage of all "off market" deals are not good deals either. People who are successfully marketing to motivated sellers are doing so at incredibly high volume, with very low response and conversion rates. 10,000 post cards or yellow letters might get you 10 phone calls, of which half are not legitimate prospects. And of the remaining five, one might be worth doing a deal on. (Obviously, response and conversion rates will vary widely)

Both methods can work, but those who are completely writing off the MLS as a source of properties are missing out. I did 33 deals last year as a realtor, 21 of which were investor purchases right off the MLS, all of which were great deals.

Furthermore - just because something on the MLS doesn't look like a good deal doesn't mean you can't negotiate it into one. Case in point - I just closed on a house of Friday that was listed on the MLS for $120k. I bought it for $96,200.

I'm not saying don't do you your own marketing - those are often the best deals. I'm just saying People complain in these forums all the time about how there are no deals to be found on the MLS, and that simply isn't true.