Buying the right home for rent

3 Replies

A saw a house yesterday that was almost perfect for renting. They were asking 110,000. Somebody bought it in January for 94,000. They were not flippers (according to the realtor) because they didn't add anything new to the home.Somebody said they had to move. I hesitated to put an offer on the house because I realized they want more money for what they had paid.The house was in perfect condition. So I decided to wait and do more research on appraisals. Of course somebody put an offer last night and now the house is under contract. So I lost. I was the first to see it. Anyways my question is if you see that a house is perfect (almost) and no major repairs are required, should I paid the amount the owners are asking even tho the other houses around sold for 10,000 dollar and less? Am I being so meticulous or an over thinker? Thank you for your reply.

You shouldn't worry how much others paid or if they are making a profit.  If you liked the house and it was worth 110K and your numbers worked out, then you should have put in an offer. 

Remember, there isn't any harm to put in any offer if it includes 7-10 days of due diligence.  You can back out or renegotiate at that time. 

But if other housed are selling for 10K less (apples and apples), then you should be able to find one for 100K or less

if the number work, you lost.

if the numbers didn't work, you won.

p.s. but yes, you are thinking it too much. if the numbers worked you should have put in an offer immediately.

Yes you have a due diligence period and multiple contingencies to back out. I always tell buyers I work with that its best to get the house secured then you can worry about the condition and such. But if you dont secure the property then you dont even have a chance regardless if the numbers do or dont work. As for value you always have that appraisal contingency. Again just because you secure it at list price doesn't necessarily mean you have to close at that price. 

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