How you making any money at that price?!

[Anthony Wick]

More duplexes for sale. More 4 plexes for sale. More properties I’m getting outbid on. My numbers tell me what to bid, but what are these other people’s numbers telling them?!

I’m a standard 20% down, 5% interest, 25 year amortization on my loans right now. I do need at least 1% rents to purchase to make money. My reserves aren’t even that big. 5% capex, 5% maintenance, 3% vacancy, 7% management expense (all dependent on what property condition is of course).

How are these people paying $300k with $2,600 rents; $150k with $1,300 rents, etc!! In order to cash flow you’re basically putting more money down (i.e. Buying your cash flow). And, many of these properties are not in an area that’s appreciating much either.

I’m a patient one, but I may be on the sidelines for quite a while during these times.

[Russell Brazil]

For the past decade, Ive constantly heard you cant make money buying at the prices I do. A decade later, Im a multimillionaire.  

Instead of looking at a spreadsheet, look at what successful investors in your market are doing, and copy it, even if it doesnt "work."