MLS vs. Off Market Deals...

[Lance Nelson]

I'm a newbie real estate investor and have been analyzing properties in Portland, Oregon. I'm having trouble finding anything in a decent neighborhood that cash flows. My goal is to rent out my townhouse and purchase a 2-4 unit multi-family property on an FHA loan. I'm a physical therapist so I don't have all day to search for off market properties, though I have tossed around the idea of becoming an agent. My question is, how many of you bought your first multi-family deal off MLS compared to off-market deals and how did you find those deals? I don't want to buy a property just for the sake of buying a property or buy a property where the numbers only look good because it's a house hack. I have the money for a down payment. Any wisdom would be greatly appreciated.

[Greg Dickerson]

Originally posted by @Lance Nelson:

I'm a newbie real estate investor and have been analyzing properties in Portland, Oregon. I'm having trouble finding anything in a decent neighborhood that cash flows. My goal is to rent out my townhouse and purchase a 2-4 unit multi-family property on an FHA loan. I'm a physical therapist so I don't have all day to search for off market properties, though I have tossed around the idea of becoming an agent. My question is, how many of you bought your first multi-family deal off MLS compared to off-market deals and how did you find those deals? I don't want to buy a property just for the sake of buying a property or buy a property where the numbers only look good because it's a house hack. I have the money for a down payment. Any wisdom would be greatly appreciated.

Some of my best deals have come from the MLS. Have you made any offers? In this market you need to be making 100 or more offers to get deals sometimes especially in competitive markets like Portland.

For MLS properties look for vacant houses that have been on the market at least 90 days or more and have had price reductions then make offers where you need to be. You'll get one but it may take 100 offers to get there. You can have an agent do this for you verbally or they can write it up and send it over. You never know what a seller will do until they have the offer in front of them.

You can also search Craigslist for properties for rent and ask the owners if they are interested in selling. Evictions are also a good list to market to. Again you can have a realtor do all this for you. 

Bottom line is you need to be making lot an of offers not just looking.