Understanding MLS Asking price strategy

[Joe Rogan]

I picked up my first duplex last year off the MLS. Looking for number two in a similar neighborhood. However, the property is listed much higher than surrounding comps by at least 60K. I'm not trying to low ball them but I know with the numbers they reported their isn't much of a return for an investor.

My question,  how do you (the BP community) treat these deals.  Do I submit an offer with numbers that works for me?  If so, should I submit my offer with supporting information as to why I am offering much lower than asking?  Maybe I'm over thinking it, but I would love to hear your thoughts.

Thanks!  

[Christopher Giannino]

RE Investing 101: Never buy a investment property with a negative cash flow!  Is it really an investment if you're in the red every single month? With that being said, I would submit an offer based on what works for you. The BP calculators are great for determining a CoC ROI. Input all the information and play around with the purchase price to get your desired ROI. When you submit your offer, you can include supporting information as it might help but from my experience it almost never does (in this market at least.)  Most of the time, the sellers are dead set on receiving a certain price because they need xxx,xxx to purchase their next property or they need xxx,xxx to pay off the current loan, etc.  

In NJ, the small MFH market is very hot because everyone wants to become a real estate investor. This is the perfect way to start REI and because there is such a high demand here now, many "newbies" are over paying for properties. My personal advice, don't fall into this category.