Buying in with the current market

[Michelle Garcia]

I am debating if I should buy an investment property in the next three months or wait a little longer especially since it’s a sellers market. I am afraid that I will buy a property that is overpriced and not be able to cash out. I also can’t afford an all cash deal, which, I believe, is where the best deals are.

What are your thoughts on the market and do you recommend waiting to purchase property?

[Stanley Ezeadi]

I would first figure out what kind of deal you are looking for. Be specific, reasonable and think long terms. Also make sure it cash flows. I’m still a rookie but here are the results of my first 2 deals.

Jan 2020- Bought 1st Househack $189k (paid asking and did low down loan) current value 250k (forced appreciation/value add+ Crazy appreciation) Cashflow $800 I rent this one by room but will actually be turning it into a full time rental and will be refi-ing.

Feb 2021- Bought 2nd Househack Original list price 220k, actual purchase price 187.6k + seller paid closing. I rented the rooms on this one as well and lived in the master. Area got hot, brand new elementary school opened, Multiple new restaurants came into the area. Current value 250k(Although no 4 bedroom house in this area is currently listed under 275k waiting for sale, I also put in about 10k in repairs) I will rent this one to a family and refi by EOY.

No crazy home runs, I didn't flip or BRRR 10 houses but I got in, instead of waiting. And at this point I have a great cash position from living rent free for more than a year, and cashflow positive on 2 properties.

What has worked best for me when trying to buy houses on MLS instead of looking for the newest house that hit the MLS. I'm looking at houses that have sat for 40+ days. At that point the listing is dried up and the seller may be a bit more motivated. At this point you need to ask yourself, what number makes this deal work for me. This helped me get my last deal 20K under list plus seller paid closing.

Hope this helps!