0 for 5 Last Week

Last week I looked at 5 properties. As I mentioned in my previous post 2 had potential but the sellers did not agree with my offer. The next 3 where all good solid homes that if in the right area would have perfect but 2 where in "war zones". The third home was in the right neighborhood and had strong potential I was just to slow. It was under contract before I could set my pen to the offer sheet.

The MLS is like going apple picking in late October most of the good ones are gone before you show up and you have to walk the entire orchard to find one deal. As an investor we can never wait for deals to fall in our lap and in response to the small and competitive inventory I have dropped yellow letters in to the mail this week. I expect the phone will ring over the next few days and a great deal will present itself!

I also have lined up several homes to view this weekend that have been lingering on the MLS and will see if we can't find a future gem!

Another change I have made is my purchase formula. I am dropping the 65% rule sorry already did that I mean the 70% rule and going to use the method J. Scott writes about in his book. MPP=ARV-Desired Profit-Soft Costs-Repair Costs. If you have not read his book I highly recommend it if you are interested in flipping houses.