[quote=ctr70]I also think it is a myth that the average retail buyer can waltz out there and buy something 20% below market off the MLS with his Realtor. From what I see in the market, there are really only 2 sources of true under market deals: 1. Trustee sale auctions (all cash), 2. Major fixer disasters that mostly the flippers buy with hard money or cash.[/quote]
You forgot contacting an owner directly and making an offer on a vacant or soon-to-be-vacant property in your local area. The property is never listed. Perhaps you already know the property, the former or current tenants, and/or the seller!
Yes, all cash (or lucrative [for the seller] OCB) are win-win situations for both parties, here.
[quote=ctr70]Most retail MLS buyers getting mortgages to buy even if they spend a ton of time looking and make a lot of offers will likely pay 95% or more of market. A big mistake many make is buying a “fixer upper” that needs $30k in fix for only $30k less than the similar fixed up house, thinking they are getting a deal. Why not just buy the clean one and save yourself all the work! And finance the costs of fix up done by someone else at 4% for 30 years vs. paying it out of your pocket. Now if you get it $60k under market and it needs $20k fix, that is getting better.[/quote]
What “seems” to be $30k of work to a potential buyer w/o the time or talent to DIY is actually $8500 to a single or couple with both.
[quote=ctr70]Berishgirl, thanks for the info on your rental across the vacant lot. That is a good warning, you can’t be too careful with location. But I still do not see the logic and where the ROI is on a $265k 70 year old house that gets $1,600 in rent:) Break that out for me. Now a $100k house that gets $1,250 in rent, that is more like it.[/quote]
I am speaking of a 50-60 year-old 3/2/2 1500+ sf SFR on a +/- 7500 sf lot on or within 1 block of 2 bus lines renting for $1800 – $1850.
