Not Finding Cash Flow Properties

[Antonio Lewis]

I am new to REI and have been analyzing various properties in my area using Zillow and Realtor.com to find properties. Are you these sites good options to find available properties for REI? What are some recommended sites to find properties?

[Wayne Kerr]

Quote from @Taylor Dasch:

Eh it is a good place to start. It honestly depends on what market your in. In Temple, some deals on the MLS still meet the 1% rule. Most deals will cash flow well with 20% down. Just know that everything on Zillow and Realtor.com are listings from the MLS, so they are getting exposed to competitive buyers and some of them are wanting to live in the properties themselves. Its a good idea to analyze these deals to get familiar with the market. If your wanting to buy properties though, I recommend going to your FB investor group, and connecting with private wholesalers. Most of them will have maybe 1-2 properties/month but they are actually decent deals. If your okay with putting the time in, I would get a propstream membership and contact property owners directly.

Couple of things - (1) Propstream is an awesome idea as well as investor FB groups, craigslist, FB marketplace etc. You get the picture. (2) 20% down does help to cashflow, but it kills your ROI and velocity of money (this assumes you have some other expenses in life and are not living in your parents basement for free). You could buy a couple properties a year using this method. You need to find a way to make your money go farther, faster. You'll find this out after your first few properties. (3) Believe it or not, Realtor.com/Zillow/Trulia are not designed for investors to find deals - they are designed for the owner occupant - that means that 98% of properties on there (in a decent location) will not work. SFH may work with a big rehab. MFHs will likely be gone within a few days (in the current market) with a cash offer.

That being said if you're looking for SFH - try foreclosures. HUDhomestore etc

You'll likely need to complete, at best, a medium sized rehab on a SFH, or look off market to find good deals.

First deal - sure do it off the MLS to get a feel for it and understand what you're doing. Second, MLS is ok too. After that it's time to really invest