Finding Good Deals on Zillow and Loopnet

[Joshua Huston]

So I am new to the Bigger Pockets forum and community, but like many of you it has been amazing to see the resources and education available. I'm young, 23 years old, and looking to invest by the end of 2018. I've been doing my best to analyze in markets that I know -- Arizona, Utah, Missouri, Kansas, and South Carolina, but my deal analysis has been limited to using Zillow. Is this even a worthwhile resource? I've heard on many of the podcasts that speed is of the essence in finding and buying good deals. I suppose that a possible avenue is finding neglected deals where owners may be willing to go down in price since the single family home has been on the market for so long.

An example deal I've analyzed in South Carolina:

Sellers are asking 35,000 dollars for a two bed two bath duplex, 1064 square feet.

The unit in question is supposedly already rented for 425 a month per side, is in a C class neighborhood and may need some work. 

On paper it seems like a great, if small deal. I have family in the area who could help with repairs and possibly even property management, although I would like to factor that in from the start. Is it worth it to deal with properties like this, or is the potential cash flow not worth the hassle of dealing with the area and potential tenants?

Glad to finally get my start on Bigger Pockets!

[Aaron Mazzrillo]

Wow, way too many markets to have any focus. Thinking your family and friends are going to fix up and manage your properties is newbie mistake #1. Who cares where they live. Invest where it makes sense and don't buy real estate expecting to give your relatives more stuff to do. I'm sure they're busy already with their own lives.

Pick one market and focus on it. Learn it inside and out. Know what the rent difference is between a 2/1 and a 3/1. Learn where the good schools are. Where the better stores are. Where crime is more rampant. 

I invest in basically 2 cities in my market. You're looking at 5 entire states. 

Oh, and Zillow sucks. It is only good for rent rates in my market. Their algorithm for determining value is horrible.