This may be a very broad question, but some guidance in this manner would be greatly appreciated: If you would, could you walk me through exactly how you acquired your last income property, from start to finish. You do not have to be specific at all, just a quick step-by-step guide to 'reverse engineer' yoiur property acquisition.
I invest in Chicago where my average cost of acquisition is $300k - $400k so we are ready to buy another when we have the down payment saved for conventional financing. About 2-3 months before we are ready to offer I set up MLS alerts on the areas I have interest in. I look at every single property on the market, and start to pay attention to what is available, what sells fast, what they are renting for, how much off list they are selling for ect. I create a spreadsheet tracking average cost per bed, sq foot, ect. This all gives me knowledge of the market so that when something hits I can tell within a few minutes if it is a good buy.
Then about a month before I start getting our finances in order, making sure to pay off all credit cards before the statement hits so my DTI is the best it can be, sending "good will" letters to the 2 blemishes on my husband's credit that I have been trying to get removed for years (in case I finally wore them out) ect.
Then I watch and wait. 2 of our 3 deals we had under contract within 48 hours of listing. My process is probably different than others because I may buy 1 house a year when others can buy 10-15 with the same amount.
Could you describe more what you mean by "setting up MLS alerts in the area of interest"? Does this mean that as new properties hit the MLS that match your criteria you are notified, or does this mean that you are notified of all the current properties on the MLS in your area that match your criteria? Also, how do you go about setting up these alerts?
@Nathan Joens All new properties get emailed to me. Which is why I start 6-8 weeks in advance. I am a agent so I have MLS access but your agent should be able to set it up for you. I am looking out of state where I am not licensed so another agent has set up MLS emails for me there
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