New to RE investing.

[Manir Ahmed]

Hello,

Looking for some tips. I am considering buying condo/townhome and/or single-family homes. However, I have found nothing that meet the numbers. After adding up all standard expenses, none of the properties I have seen make money or even break-even. I must be doing something wrong as I hear people are buying properties all the time and seems making money. Hope to get some ideas and pointers from BiggerPocket members. Thanks

[Elliot Shoener]

Manir,

There is always a deal "somewhere" as they say.   As a new investor I highly suggest you stick to a market you know, and purchase a home that is average price or slightly below average price for the area. For example here in Atlanta area, a 3/2 in a good community is around $350K.  Meaning, don't go by a luxury property, or a downtown condo if you yourself are familiar with 3/2 single family homes.    That said, it can take time to find the right deal.  Rates are high and sellers still think it's 2021.  I would say your first step is a realtor with real investor experience. The reason is that you may. need to put in a lot of offers. If you have an agent, tell them to search for properties that have been on market for at least 30 days, if not 90 days. These are your motivated sellers. Then offer them 10% - 20% under asking or appraisal. This can seem crazy, and you may have to put in 50 - 100 offers, but a seasoned investor friendly agent will know how to do this without taking up all their time.  It's very common for us to put in dozens and dozen of offers.  Then when we find a seller is willing to speak, do we even go look at the house.  There is no reason you should have to spend 1 min of your time on sites trying to find homes.  Let your agent shotgun offers.  When one bites, they can present it to you as an option.   Feel free to reach out with questions.  Something else we see a lot with new investors.  We find that new investors often want to buy a house "they would live in."   Think of a house as a deal, numbers only, and nothing else.  When you start looking at an investment as a home, you'll end up overspending.  What people look for in a rental is different then a home.