Way to get the best possible deal for buy and hold?

Question

What is the way to get the best possible deal for a buy and hold rental property?  SFH or MFH is OK.

I am considering the following:
MLS bank owned
MLS short sale
find my own short sale
aution.com style fake auction
courthouse steps auction
county tax auction

I have about $90k cash and I want to buy a property with the best cash flow possible for retirement income.  I can do rehab.  My market has lots of properties in this price range but I want to get a great deal and I'm willing to wait and do the work for it.

Laura Alamery · Answer

Here is a list of the 20 best ways to find motivated sellers - this should cover it :). It was posted on my personal blog.

1. Classified Ads in Newspapers – local paper, Pennysavers and local real estate publications (“For Sale by Owner”.)

2. Classified Ads online – Craigslist and Backpage.

3. Search Classified Ads online and offline – look for houses for sale with “Motivated Seller” or “Must Sell” in their ads.

3. Vacant Homes – drive for dollars. Look for abandoned or vacant homes and locate the owners via Recorder of Deeds office.

4. MLS Search - expired listings, short sales possible, fixer uppers – these are all terms to search for.

5. BirdDog - these are individuals that will look for houses for a flat finder’s fee.

6. For Rent Signs – especially if there are vacancies or are out of town owners, they will be motivated sellers.

7. Wholesalers – partner with them to locate properties and sell them to investors. They know where to look.

8. Preforeclosures – “Notice of Foreclosure” is published on the legal paper.

9. Divorce Filings – look in legal paper for divorce filings.

10. Probate Filings - look in legal paper and probate court.

11. Tax Sales – contact the City and County for tax auction dates.

12. Private Auctions – check online and local auctioneers for listings.

13. Foreclosure Auctions – check City and County for times and dates.

14. REO (Real Estate Owned by banks) – contact banks and MLS for listings.

15. HUD (Government Owned Properties) – check the site HUD.GOV for listings.

16. Networking – network with professionals (CPAs, Attorneys) and rehabbers/landscapers for referrals.

17. Bandit Signs – post bandit signs in strategic locations: intersections, Home Depot, vacant properties.

18. Business Cards, Flyers, Magnetic Car Signs - let everyone know what you are doing and looking for.

19. Website - a website targeting distressed/motivated sellers. Offer a Free Report like on techniques to avoid foreclosure and have the site optimized for your local market.

20. You the Investor – always have a positive and outgoing attitude, ready to meet people and network.

James Martin · Answer

All of those are good sources, I would include that the home is in an area that is still transitioning. Things to look for would be above arerage income moving into the area. People demonstrating pride of ownership towards their home by dressing their house during the holidays or simply spending time doing yard work. Also,you often may notice construction taking place in the area.

Alex K. · Answer

Curt,
I'm the type of guy who doesn't mind doing the work myself and saving the money.  I plan on retiring within a year and I will have lots of time on my hands.  I appreciate all the suggestions.

I made 2 offers today on single family houses I found on the MLS.  One of them is has an extra kitchen in the daylight basement and a separate entrance, so I could rent out the basement and live in the top floor.  I am going to see if I can get owner occupant financing on it.

Curt Davis · Answer

So I am partial but you should buy from a wholesaler who has a turnkey operation.  What is your time worth?  Do you want to go to the home everyday for 3 weeks and oversee rehab and then also try to rent out the home?  Your time could be all sucked up by just one property.  If this is not the way for you then follow the previous advice given. Good luck

Arthur Garcia · Answer

Alex,

One thing that has helped me find great deals is to scan the MLS 2xs a day.  I only buy in 3 zip codes so I am pretty up to speed on what listings have dropped in price, which houses need work, which houses are under-valued.  I have a full-time job in an unrelated industry so I pretty much stick to the MLS and it has worked out well so far. The more you study your market, the easier it is to find the good deals.

Greg P. · Answer

Oh, and a little bit of hustle

Greg P. · Answer

What you are describing is the best way and use those techniques in combination with relationship building and you will win.

Way to get the best possible deal for buy and hold?

Most Popular Reply