About to look at a property, what should I look for?

[Paul D.]

Hello BP!

Been doing my research and finally putting the books down to go out and look at a property I have been scoping for the last year and notice a price drop within the last 6 months. The Property is located in North Jersey ( where I live). Its about 20 minutes where I live now and this new location would be 5 minutes from where I work which would be a plus. It is a Multi Family home (Duplex). I want to follow the BRRR strategy. Start off by buying a duplex build out the one side as I live in it and once it is presentable and really nice for a tenant try to find one to live there start paying some of the mortgage and then move into the other unit. Then as time goes on put money into the place build it up like the first unit and do the same thing. With all that said a little about the property and the situation.

     The property listed from June ( which I wrote down the information on my watch board I have in my room) I went on Zillow the other day and noticed the drop in the price. It dropped 10k from June to August. Then just recently it dropped another 13k (November). So Since June it has dropped a total of  23k. What would any of you  think of this? Little about the house; Looking from the outside of it it is definitely the sh*ttiest looking house on the block lol, but I see a house with the most potential on the block. It just looks like its needs some loving and lot of cosmetic work. I am hoping that is all it needs.

If I offer considering all the checkpoints are clear and I have a good feeling about the foundation and structure and what not, would that be considered as "buying right" as everyone says or buying at an discount. I remember reading in all the real estate books they said you want to go in and buy right. Finding homes that you can find a 20% discount on. Now I know that price drop isn't 20%, but say I offer now lower than what the asking price is than I can be close to that 20%. Am I wrong or right? Just looking for some useful information and a guidance as if I am thinking the right way.

      I called up and set up a meet with the seller this week. Are there any critical questions I should have prepared and also what are some things I should be looking at when I am there? Once again guys I am new at this, this is a first property and I am doing it all on my own so its kind of scary, but I am not letting that fear get to me. Just trying to gather as much information As I can going into this and hoping for the best. I have read pretty much all the BP books and listen to all the podcasts daily ha. I love this stuff and really hoping I can get my first deal. 

I highly appreciate and give future thanks to anyone giving their time to this post. Thank you so much I will respond if I have any questions. 

One last thing, I noticed that it was under contract and then put back on the market as well last month. Is that something that I should be aware of and ask about? would that be a red flag possibly or could it be anything. 

Thanks BP!

Paul