Should I fire my Real Estate Agent based on suspect advice?
Should I find a new real estate agent?
Small Multi family deals are hard to find in Atlanta, not seeing many deals that are even close to the 1% rule.
I ran a property I was looking at through my spreadsheet that accounted for rental income, debt services, expenses (insurance, property management, maintence expenses, vacancy rate ), calculated NOI, cash flow, cash ROI, Cap rate.
In this case it was listed for $150,000 and the only way I could see making it work was offering $100,00 to account for all the built in expenses.
My agent said that in this market (Atlanta) there is not going to be a perfect property and that I will never get a property running it through those formulas. Accounting for vacancy, property management ect.. would never allow me to get a property b/c I'm talking myself out of it before I begin.
He said that now investors are “buying income/cash flow” as in putting down large amounts of cash to make a deal work. So they are finding a property that is made of good material (brick) in a good neighborhood and then putting down large amounts of cash to make it cash flow, even if the rent to value ratio is well below 1%, b/c they are buying good cash flow.
Is that a good mindset to "buy cash flow"? Should I find a new real estate agent? He does a good job and is very responsive and a “go getter” but one part of me doesn’t trust him as he has the motivation to just get me to buy something so he can get a commission. I want a partner who will help analyze deals and set me up for success in buying my first property.
My real estate agent tells me I should be flexible/change my formula when accounting for expenses in order to find a deal, is this smart? #askBPpodcast
Should I "buy income" and put large amounts of cash down on a deal?#askBPpodcast