Should you overpay for good cash flowing rentals??

[Michael Capone]

I'm looking at solid cash flowing($400.00-$650.00) rentals but I feel they are overpriced. If holding long term, how concerned should I be with purchase price?

[Ujwal Velagapudi]

I have always gained equity upon closing because I did things (off market, distressed, negotiate, etc.) to get a great price. If you over pay, you are really losing instant equity upon closing. The market is dictated by what a buyer is willing to pay, but I wouldn't count it if you knowingly are overpaying.

I would find an opportunity with some value add, off market, desperate seller, etc. scenarios where you could be closer to market rate or even slightly lower. 

Personally, I would never over pay for an asset unless there was some strategic move. If it's just for a few hundred bucks a month net cash flow, I don't think it's worth typing up that capital. Also, everyone goes into investments thinking it may be for the long haul, but really understand your finances & make sure it can truly be locked up for X years or longer in the potential case of depreciation in your asset and a recovery.