How many is too many?

Question

This is my first time looking for an investment home. I started looking at homes this past couple of weeks. This weekend I saw 15 homes and have not made any offers. I plan to view more. How many is too many ?

Some made positive cash flow on my analysis but just did not feel right - for example: one had an tall electric pole in view which I'm sure will deter renters and future buyers, 3 or 4 of them backed into a busy road, etc... Some were ok but just did not work for us.

I wondered to myself if I'm treating this process as if I'm going to be living in it and looking for something perfect !

How does one pick an investment home  (and quickly) from a large set?

David Faulkner · Answer

In my opinion, you are not viewing too many, but you may be offering on too few. I know my market well enough to generally know if the property is something I want to bid on before I even view it, and the viewing is more to determine what the offer will be based on condition. It may take viewing a lot of homes without offering to get to that point, which it sounds like you are doing. So, for me, yes I look at a lot of homes, and I bid on almost every home I view, and very few of my bids get accepted, but when one does I know I got a good deal and have made money already on the day I close escrow. For me, that is the formula for finding a deal.

As for the comment on burning out buyer's agents, that is very good advice and why I don't use a buyer's agents. My offers always go in through the listing agent. It is easier to put in 100 offers through 100 different listing agents who each know that they will double end their commission if I'm the buyer than it is to put in 100 offers through 1 buyer's agent who will only get 1 side of the deal for all that work.

Arvind Sundar · Answer

Thanks for your feedback all

Neal - I'm looking for houses within my price range that I've set. I've driven around the city I want to buy in to determine which communities to watch for. I base it on pictures, price per sqft, and trying to get a variety - some at lower end, some higher and some middle of price range.

Ned - thanks - you are right - it does take a while to understand what types of homes are available in my price range and in the location I'm looking at.

thanks

Ned Carey · Answer

You don't. It takes time to learn your market and to learn how to evaluate deals. Some people talk about the 100 house rule. Until you have looked at 100 houses you don't know your market.

Jerry W. · Answer

Numbers and location.  The numbers must drive your decision.  In my area a tall electric pole would have no impact on my ability to rent.  I cannot speak as to what it might do in your location.  It would probably have to be a pretty classy area for a power pole to impact the ability to rent it.  Set your criteria then look for what meets your criteria.