Asking price really should have no bearing on what you would be willing to pay for an investment property. You should run the numbers and know what it is worth to you.
If the property is a great investment, and you believe you need to offer higher to get it, why wouldn't you? I've seen many properties that wouldn't make sense at a fraction of asking price. If I see a great deal and have to pay over asking to get it, I would.
Asking price really should have no bearing on what you would be willing to pay for an investment property. You should run the numbers and know what it is worth to you.
If the property is a great investment, and you believe you need to offer higher to get it, why wouldn't you? I've seen many properties that wouldn't make sense at a fraction of asking price. If I see a great deal and have to pay over asking to get it, I would.
@Greg Scott I came across this today practicing analyzing deals. The ask was $45k but with an offer of $47k cash flow was still above $200/mo. Only trouble was estimating the repairs as there are apparently some code violations that would need to fixed like rotted wood trim and a broken concrete chimney.
If you think prices are one the way up and there multiple offers this can be a reason to offer over asking or if asking price was too low to begin with, also i just look at asking price as not as important as what the property is actually worth and what i think the market will pay for it. I try to guess what the highest offer might and what someone else would pay for it. Then i start with and ask myself at that price does this property make sense for me and what my plan is for this home. Ask price is irrelevant