Am I low balling my offers?

[Elliot Marszalek]

I've run the numbers on quite a few properties in my search area and have found that the majority of the ones I like the numbers aren't good on unless I offer way less than the asking price. I'd like to stick to my numbers so I don't buy a bad deal but the most recent one I ran came up with an offer price at 40% of the sellers list price to make it work. This was the lowest so far but most of them have been around the 50-65% of list price range after looking at rehab costs and rent rates etc. Should I be considering what the rent rates should be instead of where they are currently? If I would offer on something based on those rates and get it, do I raise the rents from day 1?


Thanks in advance for any help/advice on this!