Where to get deals? Not the MLS I think.

Question

I've yet to purchase my first home. I've looked around seriously on the MLS, analyzing deals, talking with my team members and getting their opinions. The problem is, deals on the MLS rarely cash flow $100 a month (and I am looking for >$150). I'm only looking at A/B properties; could it be that these are simply produce less cash flow than C/D properties?

I feel I am not concentrating my efforts correctly. Should I look outside the MLS? Perhaps auctions?

Any thoughts are appreciated.

I feel I am not concentrating my efforts correctly. Should I look outside the MLS? Perhaps auctions?

Any thoughts are appreciated.

Ned Carey · Answer

It is very rare that you can buy a or b properties at full market value on the MLS and expect them to cash flow.  Yes A or B properties will absolutely cash flow less that C or D properties. There are LOTS of ways to find deals, serch the site and you should find many ideas.  Try searching for 100 ways or 101 ways to find deals.

Frank Wong · Answer

Hi Teho,

How much are you putting down?  This plays a crucial part in cash flow.  If you are putting less than 20% down you most likely will not be getting the numbers you want.  An investor should always look at the deal from a 30% down standpoint.

So many times I see investors say I can't cash flow with my FHA loan.  Well, that is going to happen if you put so little down.

If you are in TX, I find deals off of the MLS that will cash flow me $300+ with 30% down. All depends on what you are looking for and where.  These are B areas.  A area is a very hard and low probability.   I buy 95% of all my deals off of MLS.

Theresa Harris · Answer

It depends on your market and what you are looking at.  Is there a local group you can meet up with?  I got all my places on the MLS.  I also know the market where some of them are has changed and there is no way I'd be able to afford those same houses that I bought 3-4 years ago.

Joe Villeneuve · Answer

I find cash flow deals on the MLS all day for much higher than your $100/month.  You're just looking in the wrong market.

Johan Yang · Answer

@Teho Kim I found a few good deals that cash flow pretty good on mls. Maybe, it also depends on which area you are looking for. I found it very hard to get good cash flow on A properties. You would find good cash flow more on B and C properties.

Don't be discouraged!! Keep looking.

Where to get deals? Not the MLS I think.

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