don't say anything else after asking that question.Now if you are dealing with an agent - you are not going to have the opportunity to deal with the seller - so - you may want to just make an offer 25% below what ever it is list for.AUCTIONS: As for real estate auctions - I have been an auctioneer for many years selling hundreds of properties annually - I would like to say that we do not always satisfy the sellers reserve price (Oh - we only represent owners and investors - no foreclosures) but we don't always get the auction price up to the reserve - but the good news is that at the auction the owner becomes very motivated to accept a lower bid - thus a great equity profit is made ------ so do not discount auctions if you are looking for a great deal.Believe me I have seen so many properties sold at auction that have a ton of equity.Someone recently said "The best deals are MADE and FOUND"So ---- how do you MAKE a good deal from the many properties out there that do not look like a good deal?

If, while running your numbers, the returns are within range to your criteria, do not lower the expenses to "make it work", but just know that some months may be higher, some may be lower, and if you have the cash reserves to support a higher bill or unexpected repair, then the underwriting at least helps you mentally prepare ahead of time.Any calculator, based on the inputs from any noobie or seasoned professional, will NEVER be the same as your actual numbers.

You will want a Realtor who is looking out for your well being and not trying to sell you the most expensive property and a property management company who is honest and has a track record of high performance in rentals - both booking percentages and rates. 

I live in the Chicago suburbs, so just about every type of neighborhood is available... cheap, expensive, old, recent construction, well kept, run down, etc.  

HI Erias,You can always start off by house hacking meaning you live in one UNIT or ROOM and renting out the other vacant units/rooms to offset your monthly mortgage payment.There are several ways to run and make sure you are maximizing your rental income while keeping your living expense as low as possible.

Hi Corazon, this is how I would think of class A, B, C neighborhoods:Class A neighborhoods are the prominent areas where everyone wants to live, your most expensive houses, gated community, high end homes, high price points, great school districts usuallyClass B neighborhoods have more rental houses, up and coming neighborhoods with lots of flips, you may also see yards not as nicely kept up, starter home neighborhoods usuallyClass C & D neighborhoods are mostly rental areas, more run down or empty houses, street by street, more crimes in the area, lower prices to purchaseThe classes usually has nothing to do with the age of the house.  

Hi Jay, Bremerton, Burien, Delridge, Snohomish, Columbia City, Rainier Valley, Beacon Hill, and Everett all have the lower prices with good opportunity to BRRRR.

Secure contracts with sellers at lower market pricing, then connect with cash purchasers eager to pay more, earning from the difference.

Good schools and great neighborhoods typically means higher purchase price and lower cash flow.

That looked like it had great potential, since purchase prices were significantly lower.