NEWBIE: What I'm Looking for, and is it Realistic?
Hey everyone!
I'm looking to purchase my first property! It's exciting but I've been at it for a while and it's been tough to find something. I'm in a high market right now (near Sacramento CA, Amador County to be specific) so that is part of the issue, but I believe there are deals everywhere. So I just wanted to put out WHAT I'm looking for and see if I'm being realistic.
1) Planning on purchasing an SFR with a live-in-flip type strategy
2) If it is fixer than I want 20% equity in deal (i.e. if the home's ARV is $300k then my max purchase price is $240k minus repair costs)
3) If its not really a fixer, or minimal fixer then I want at least 15% equity (home with ARV of $300k then my max is $255k minus repair costs)
I've offered on a couple properties so far, both were rejected, which is fine. I'm ok being rejected and I think it's going to take several offers before I find someone willing to sell at this type of discount, but I feel like it will be worth it in the end.
But what do you guys think? Is getting 15-20% equity a realistic goal in a hot market? Am I out of my mind? Advice, support, stories, etc. would be appreciated! Thanks!