RMLS distressed listings deal/no deal?

Question

given the current condition of the market, what's the general consensus regarding residential distressed property listings on the RMLS with respects to any profitability to be had? Are these listings generally going to have inflated purchase prices in a sellers market? Or is it truly a driving for dollars game?

Matt Good · Answer

@Lisa Thoele that's very reassuring thank you! I've heard the same from my local meetings!!

Rodney Marcantel · Answer

In Dallas, it's a sellers market. Inventories are extremely low so if buying a home to flip, you're ARV's can be a bit higher than comps depending on the updates you do as homes here are getting multiple offers. I have my home on zillow as a "make me move" and getting many calls from agents wanting to know when we'll actually put our house on the market cause they have a large buyers list ready to move to my city.

We don't plan to put our house on the market until mid summer as we're building a house just outside our city to cut our tax bill in half as where we live is very expensive taxes and with our daughter graduating high school in May, we can now move out of this city (best schools in Texas). This way we'll be able to downsize and cash out to pay for her college and get a brand new energy efficient home. Appreciation on our home in 2 years is right at $100K.

My RE agent is constantly writing offers on homes as she gets multiple offers on every home, some of which are getting $20K over asking. Great for me since I'm selling :-).

Neal Collins · Answer

That's a good question. Is there more potential for a better deal by finding an off market property? Sure, although even off market deals have competition. If you can find a way to turn an opportunity into a deal then you're doing good. For some that is working with expired listings, for others it's door knocking. Maybe you see an opportunity that others don't with old listings on the RMLS. I think it all comes down to personal preference and appetite.

Lisa Thoele · Answer

I think you are on the right track with finding your own deals outside of RMLS.  The general consensus at the investor meetings I have been to is that there aren't really deals that fit most investors' criteria on RMLS in the Portland area. With our low inventory even junky stuff is selling for ridiculous prices.  I would suggest you find a wholesaler or find your own deals!  They are out there you just have to turn over a lot of rocks.  Good luck!!

Michell P. · Answer

Knocking on doors isn't a bad idea - if you have the cash to follow through on it and can find people in distress.  I doubt most people in the area are going to give away their property when it's pretty common knowledge that the market has gone insane, but a lot of people say they get their best deals off the MLS - so give it a try and let us know how it goes :)

Matt Good · Answer

I'm specifically wondering if it's more profitable to go knocking on doors and avoiding what's already gone public altogether? I can only assume that EVERY Investor and their Mother would not only be lining up at the doors, but willing to pay more just to land a project hence a listing being "overpriced" ...

Thoughts?

Michell P. · Answer

There was recently a distressed 4plex on the market in Portland - needed new roof, had water damage, older kitchens, needed new drywall.  In the Hawthorne area.  Sold for $500,000.

Distressed properties close-in are selling high.

But, you can still get good deals on distressed properties if you go out a little farther.  Maybe Gresham or Wilsonville, Estacada....

RMLS distressed listings deal/no deal?

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