Offering 80% of home value

[Mark Raimo]

Hello all,

I'm looking to purchase a three-family home. I'm in the process of reading the Bigger Pockets Rental Property Investment book. As I'm sure most of you are aware, it is recommended to bid 80% of the home's value since money is made at the buy. 

The issue I'm running into is the houses in my market are selling within 3 days tops. Some of these houses need work or are mostly ready to rent with little rehab. How can I secure a deal offering 80% of the home value when these houses are selling so quick? Is there any situation that you will disregard the 80% offer, and maybe offer 90% or even 95% of the home value?

I see where you could potentially loose without securing a cushion of equity at the buy. I'm curious as to how a more experienced investor handles their purchases. Any insight will be greatly appreciated.

Thank you!

Mark