Patience in finding the right property

12 Replies

Rookie here. I am about a month or two away from shopping for mortgages and I check the typical MLS sites and a few other local real estate sites daily looking for deals. My wife and I want to purchase a multi-family to live in and rehab for our first property. The problem seems to be that there are few quality multi-families in decent neighborhoods in the Durham area that we would consider living in. We are also open to purchasing a single family home and house hacking it, but I really like the idea of tenants paying the mortgage in the multi-family situation while you save money (from other job) and rehab. My question is how long should one wait to find their ideal property? I want to take action and not sit on the sidelines, but I also hear that you need to find your niche and stick to it. Any opinions? Thanks in advance.

You don't pick the market, the market picks you.  You can't force a deal, and never accept a deal where the numbers tell you not to.  Sometimes, the best deal you make, is the one you don't make.

Find a different market.

There's not much multifamily to choose from in Durham that isn't in a terrible neighborhood. I check the MLS almost daily and have yet to see anything worthwhile. If you're dead set on purchasing a multifamily my suggestion is that you find a few you like that are in good quality neighborhoods and start reaching out to the owners. It's a bit of a long shot but you just may find that one absentee landlord who has been looking for the right time to unload their rental property.

@Eric Pink

Scan the properties with older DOM.  Don't let the listing prices determine your offer price.

For my long-term hold I have over paid several times which in the big picture it is not relevant.  

Avoid sharing your thoughts with family, friends, co workers and agents that are negative thinking, hold you back or roll around in 1st gear.

Frank

Very good advice on this thread from Joe Villeneuve

Any interest in a Chapel Hill Duplex? Nice neighborhood and home, but expensive for that reason.

Originally posted by @Joe Villeneuve :

You don't pick the market, the market picks you.  You can't force a deal, and never accept a deal where the numbers tell you not to.  Sometimes, the best deal you make, is the one you don't make.

Find a different market.

I'm thinking that this is a way of saying a good deal is a good deal and trust the numbers to sort of guide you. Wise words. I guess I sort of have this picture in my head of how the start of my REI ventures would play out, but maybe I have to be a bit more flexible.

Originally posted by @Michael Jobe :

There's not much multifamily to choose from in Durham that isn't in a terrible neighborhood. I check the MLS almost daily and have yet to see anything worthwhile. If you're dead set on purchasing a multifamily my suggestion is that you find a few you like that are in good quality neighborhoods and start reaching out to the owners. It's a bit of a long shot but you just may find that one absentee landlord who has been looking for the right time to unload their rental property.

Originally posted by @Michael Jobe :

There's not much multifamily to choose from in Durham that isn't in a terrible neighborhood. I check the MLS almost daily and have yet to see anything worthwhile. If you're dead set on purchasing a multifamily my suggestion is that you find a few you like that are in good quality neighborhoods and start reaching out to the owners. It's a bit of a long shot but you just may find that one absentee landlord who has been looking for the right time to unload their rental property.

 Michael,

Have you noticed that single family homes offer the best deals in the triangle area and that multi-familes just aren't prolific as in other locations maybe?

@Eric Pink , though the pickings are slim, there are some properties that occasionally pop up.  For instance, here's one that sold recently:

http://www.realtor.com/realestateandhomes-detail/1...

Brick duplex with 2BR/1BA on each side.  The pics are not up any more, but I looked at them a few times when the property was available.  Not updated to this morning's standards, but certainly move-in ready.  Close to Duke Univ, Trinity Park, and other desirable neighborhoods, nice sized lot.  My guess is the rent from the second unit would pay your mortgage, leaving you the opportunity to save for your next investment.

Unfortunately, it sold on April 23.  But, if you are vigilant in your hunt and are ready to put an offer in quickly, you should be able to find something.  Maybe not this month, maybe not next, but patience and persistence should pay off.  This is not an impossible market.

This is probably outside of your budget, but ...

http://www.realtor.com/realestateandhomes-detail/8...

It's even closer to Duke Univ -- right across the street actually.

Good luck in your search,

Originally posted by @Randy E. :

@Eric Pink, though the pickings are slim, there are some properties that occasionally pop up.  For instance, here's one that sold recently:

http://www.realtor.com/realestateandhomes-detail/1...

Brick duplex with 2BR/1BA on each side.  The pics are not up any more, but I looked at them a few times when the property was available.  Not updated to this morning's standards, but certainly move-in ready.  Close to Duke Univ, Trinity Park, and other desirable neighborhoods, nice sized lot.  My guess is the rent from the second unit would pay your mortgage, leaving you the opportunity to save for your next investment.

Unfortunately, it sold on April 23.  But, if you are vigilant in your hunt and are ready to put an offer in quickly, you should be able to find something.  Maybe not this month, maybe not next, but patience and persistence should pay off.  This is not an impossible market.

This is probably outside of your budget, but ...

http://www.realtor.com/realestateandhomes-detail/8...

It's even closer to Duke Univ -- right across the street actually.

Good luck in your search,

 Thanks for the positive vibes

Originally posted by @Eric Pink :
Originally posted by @Joe Villeneuve:

You don't pick the market, the market picks you.  You can't force a deal, and never accept a deal where the numbers tell you not to.  Sometimes, the best deal you make, is the one you don't make.

Find a different market.

I'm thinking that this is a way of saying a good deal is a good deal and trust the numbers to sort of guide you. Wise words. I guess I sort of have this picture in my head of how the start of my REI ventures would play out, but maybe I have to be a bit more flexible.

 Remember you can't fit a round peg in a square hole without shaving the peg.  Guess what you are shaving off when you finally get it to fit?

Originally posted by @Eric Pink :
Originally posted by @Michael Jobe:

There's not much multifamily to choose from in Durham that isn't in a terrible neighborhood. I check the MLS almost daily and have yet to see anything worthwhile. If you're dead set on purchasing a multifamily my suggestion is that you find a few you like that are in good quality neighborhoods and start reaching out to the owners. It's a bit of a long shot but you just may find that one absentee landlord who has been looking for the right time to unload their rental property.

 Michael,

Have you noticed that single family homes offer the best deals in the triangle area and that multi-familes just aren't prolific as in other locations maybe?

It's not so much that they offer the best deals but they are more readily available than multi's and usually in better locations. I will say that if you have a big budget then that opens up some better MFH options in better neighborhoods. To give you an idea of the difference in inventory, there are currently 9,880 SFHs actively listed in Triangle MLS while there are only 93 MFH actively listed. It's slim pickins on MFH but with persistence I'm sure the right one will come along for you.

Another option you may want to consider should you exhaust your MFH search is a SFH with an in-law suite that has its own entrance & kitchen/kitchenette. Although it will unlikely cover your entire mortgage it will damn sure take care of a generous portion of your monthly payment.

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