@Jacob Sontag I'm doing exactly what you stated, and I had all the same problems during the search. I closed on my duplex few days ago. As is my property is below 1%, and there are a few reasons why I decided that was okay in my situation. First off, the MLS is super competitive right now. For big dogs like @Mike Sumsky and @Bob Malecki the returns probably aren't even worth it. For me, I just needed to get in the game, get some experience, and start paying down a mortgage.
Currently its just below 1%. But the rent isn't up to market prices yet, there's room for sweat equity(rents go up again), it saves me and my girlfriend $100 each a month in rent, I get some tax shelter and I used a VA loan with 0% down. Had I put 20% down these numbers would look better except for the cash on cash return. Currently the only real cash flow I'm getting is the $100 I'm saving each month. Post sweat equity I'm hoping to get 200$ cash flow per door as the market stands today. With 20% down that would be about double. So refinancing at 20% equity is definitely tempting but that all depends on the market/rates and if i can find anything better to do with my money.
Anyways, that's a little of what I have going on. I know I'm not hitting a home run but batting a single at least gets me off the bench. But what do I know.
PS read up on negotiating. Your negotiating skills could pay/save you tens of thousands of dollars an hour. Definitely worth learning. Make your money when you buy. @Mike Sumsky summed it up pretty well in one sentence when he told me "The obvious answer is not to overpay for houses." But I feel like that's easier said than done these days.
Take care,
Joe
