I am new to the real estate investing. I have been currently driving for dollars around the La Crosse WI area and I am struggling with correct analysis of potential rental properties. I am interested with utilizing the BRRRR method. I am currently using Propstream to help with pulling comps; however, when using that tool I am not getting any accepted offers. I currently evaluate 10 deals per day and my evaluations seem to be inaccurate. Where or what should I be doing to correct this problem?
Hi Joshua, I am in La Crosse and use the driving for dollars strategy as well. Can you walk me thru how you do it? What services does Propstream have?
@Joshua Wieser , generally speaking, deals are very hard to pencil out these days. Prices have risen a lot faster than rents. If you are going to be financing a vast majority of the price, it makes it even harder to cash flow in most markets.
Additionally, while I don't chase off market deals, I have many friends that do. It is a lot of time and a fairly sizable marketing budget to get a couple deals.
I am not familiar with prop stream or your market, but in my market, each house sells for more than the last, so if you are using sold comps as your valuation, you are already maybe 10% behind on price for a lot of houses. Combine that with the terms of your offer versus others, and you may simply be offering too little by way of price and terms. Cash, quick close, no contingencies goes a long way in this market. Or paying more.
When driving for dollars (D4D) I use mostly used DealMachine App to track my route. It allows me to track properties. Once I track the properties I input the addresses into PropStream* propstream has a drive feature that does about the same as dealmachine I just think dealmachine is a bit more user friendly* and then I will use their comping tool to find similar properties with .5 miles of the target property. it allows one to create parameters that you can use to match your target property. from there I will use 10 properties and compare the price and evaluate the PPSQFT( Price per square foot) then I will find the after repair value (ARV) or atleast the average. from there I use my formula to find what matches what I am looking for. basically Propstream gives access to the MLS and public record of property sales and any public records such as pre foreclosure or divorce ect