What is the General Over Inflation of the MLS in Your Area?

[Peter Korty]

Hi BP Community,

So I know that this has been asked/stated like a million times, but I didn't quite find what I was looking for as a newbie, so here it is with a little background.

I've been practicing deal analysis with the calculators using listings that I find on Zillow, and generally what I'm finding is that the number I need to make it a good deal is 55-58% of the asking price. Craigslist deals are pretty similar too.

Obviously off market deals from deal funnels are the better way to go than strictly going off of the MLS, but my question is mainly to the more experienced investors out there that analyze the MLS all the time. Is the MLS over inflated (deal wise) by about 55-56% generally speaking?

I'm guessing it's probably market dependent too, so as an example, in my area most 3-2 SFR units will rent for about $750/month.

What percentage of the asking price makes it a good deal in your area?

Thanks for the help,

Pete