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Updated over 2 years ago on . Most recent reply

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Joseph DiBernardo
  • Investor
  • Long Island, NY
4
Votes |
18
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Sourcing Deals & the 2% rule

Joseph DiBernardo
  • Investor
  • Long Island, NY
Posted

Hello - I am a newcomer to this page and am looking to buy my first real estate investment. I have two questions:

1-Where is the best place to source deals on my own? I can't help but think Zillow is not the best place.

2-I see the 2% rule everywhere , but seems to me it's nearly impossible to find a 2% property unless your are purchasing well below market value. Are there any of "rules of thumb" I should be considering? Or throw this out all together? 

I'm seeking relatively turnkey single or multi family units . Hence my question above , as I'm not looking to do much Rehab to start. 

Any insight would be greatly appreciated! Thank you!

Most Popular Reply

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4,157
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3,834
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Jaron Walling
  • Rental Property Investor
  • Indianapolis, IN
3,834
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4,157
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Jaron Walling
  • Rental Property Investor
  • Indianapolis, IN
Replied

Came hear to say what @Brock Dowis already mentioned. The 2% rule is a unicorn. We're in a cash-flow market and barely see 1% opportunities. If you find deals hitting that rule I'd question WHY. It's either a dumpster fire, terrible location, poor layout, or a combination of issues. 

@Joseph DiBernardo I'd slow down and throw the "rules" out of your mind. REI is not about rules. It's about relationships, location, value add, actual $$$, and providing safe housing for people. I'd focus on $$$ and less on percentages. If you haven't already start building a spreadsheet and run the numbers on properties. Continue doing market research. You don't need an agent to do this stuff. Without these steps it's easy to fly blind and never develop a plan. 

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