Getting started in a overpriced market.
Good Evening all. I am a beginner, but yet I've been a landlord for about 11 years. This is via my mothers home that my sister and I inherited. I am a physical therapist and was doing quite well until covid hit as I was on a new venture, ultimately cutting my income back about 20%. I remarried 2 years ago, going from 13 years single to wife and teenage son. So, my cash flow on the single house is about $299/mo, now that it's paid off and just my sister and I involved in it. (that helps). I am in Jonesboro, Arkansas. My goal is to 1. regain that 20% income, and 2. Be ready for retirement in about 8 years (I'm about to be 59.) and if possible 3. Gain a bit of freedom from the job in the meantime. Well I've been hitting the books starting with Brandons "rental property investing". I've been looking at duplexes and Single family homes but they all seem overpriced (I realize I can make a lower offer). Most don't come close to meeting the 2% test and few have COC return of greater than 10%. However I think the norm around here is they pay their own utilities and I plan on being the Property manager, at least for awhile. Is it reasonable to give a bit of lee to the 2% test if most expenses are covered by the renter (utilities, lawn care, etc)? I'm hearing some say prices will drop in 2022, but I'm seeing houses get snapped up fairly quickly despite the prices. Are most of yall waiting it out or buying in this market?
thanks for any info..
Richard