How To Invest When You're Chasing the Market Up

[Bob Crane]

What a time to get the first deals locked in, Oy!

Short question - do you chase the bubble up at the beginning to keep investing or work harder for rare opportunities?

My plan was originally to acquire 3 single families per year for my first five year.  This year I've completed 1.  3 other deals looked great at first glance but the numbers didn't pass analysis.  The market went CRAZY in the last six months and each one of those either sold fast or is worth way more now.  Feeling like if I don't increase my risk I'm going to be sidelined for the next few years.  I'd love to hear from those who've been through hot markets - what have you done in the past and what's your plan today?

Deal 1 - 5 BR 2600 sq ft for $230k.  Needed lipstick.  Sold in March after 60 days on market.  Similar house same neighborhood with less SqFt just sold for $330k.

Deal 2 - 1/2 of a duplex (4br). Needed rehab. - 14 months on market FSBO $159k, seller wouldn't drop below $150k. Listed with realtor and sold for $168k in 3 days.

Deal 3 - 3/2 1200 sq ft SF - Need rehab.  $150k.  Couldn't make numbers work for more than $130k (which they wouldn't take).  Sold in 4 days.