Real Estate Investor · Poulsbo, WA · Member since 2015 · 21 posts · 8 votes
Hello BP!
I'm looking for advice on how to navigate a sellers market. Ideally I'm looking for properties to rent, but I've also opened my options to buying a house to live in(I currently rent).
Long story short I suppose I'm looking for creative ways to find deals. Specifically off market deals. I'm pretty familiar with the common ones posted here: "Driving for bucks", direct mail, for sale by owner, Craigslist. But I'm always interested to hear what you have to say!
My other concern is should I wait for this bubble to pop? If I'm five overpaid houses deep when it pops that might ruin me. My option for that is to buy one house to live in with some rehab potential and "shelter in place" lol. Maybe with one rental if I can find the right deal.
All advice and ideas are welcome.
Thank you!
Keywords: Kitsap Washington Keyport Bremerton poulsbo port orchard Seattle
Rental Property Investor · Hailey, ID · Member since 2015 · 218 posts · 143 votes
10y
I agree with @Mike Sumsky and @Joel Colvos. A bad deal is only a bad deal if the numbers don't work when you buy. A good deal ought to net you some instant equity, and cash flow from day one, or asap.
You give the market and sellers too much credit. Most aren't selling because they see a bubble, and want to lock in their profits before said bubble pops.
I highly suggest you use the BP Rental Calculator, and start playing with the numbers and see what numbers work for you. Then throw that offer out there. You have your number, and that's that. Keeps you from making a bad deal barring you've done the other necessary due diligence.
Rental Property Investor · Bremerton, WA · Member since 2012 · 116 posts · 61 votes
10y
@Joseph Ziemba, The obvious answer is to not overpay for houses. I don't see a reason to wait, just make sure you buy right so that it doesn't matter what the market does in the short term. If you buy with good equity, and the house puts off a reasonable positive cash flow after all of your expenses, that should be a good investment that can weather storms. The advice you got about driving for dollars, direct mail, Craigslist etc to find off market properties are good, so start there. You might also consider other wholesalers as ways to get inventory. Good luck!
Real Estate Investor · Vashon, WA · Member since 2015 · 32 posts · 12 votes
10y
I agree with Mike that a positive cash flowing house will weather most any storm. A few things you should be aware of, as a possible owner/occupant of a house you can get first option on many houses that investors can not. Set up owner occupant in your keyword searches and you can find things like this
Lender · Vancouver, WA · Member since 2015 · 482 posts · 316 votes
10y
I am sure I will get blasted on this though it is really only a "seller's market" for homes that either investors are selling or those where people think that they "deserve" a higher price. Yes it is about 2/3rds of the market though of the other 1/3rd there are lots of options. This other 1/3rd are properties that have blemishes or their owners believe that their house is "not as good" as the neighbors. Use that to your advantage. How do you find them? By talking with people and getting out from behind the computer - or work with a broker that gets out from behind his/her computer. It's those other 1/3rd that you want to concentrate on. You really don't need to be that creative - you just have to be paying attention, call on, and be ready to view properties as they hit the market - yes the same day. i don't mean to imply that it is easy - because it is not - it takes time.
Rental Property Investor · Hailey, ID · Member since 2015 · 218 posts · 143 votes
10y
I agree with @Mike Sumsky and @Joel Colvos. A bad deal is only a bad deal if the numbers don't work when you buy. A good deal ought to net you some instant equity, and cash flow from day one, or asap.
You give the market and sellers too much credit. Most aren't selling because they see a bubble, and want to lock in their profits before said bubble pops.
I highly suggest you use the BP Rental Calculator, and start playing with the numbers and see what numbers work for you. Then throw that offer out there. You have your number, and that's that. Keeps you from making a bad deal barring you've done the other necessary due diligence.
Real Estate Investor · Poulsbo, WA · Member since 2015 · 21 posts · 8 votes
10y
I've read you're supposed to find a niche and basically master it, but due to the lack of options I feel like I'm looking at anything I think will be profitable.
For example tomorrow I'm going to look at a duplex which I believe I can house hack or possibly turn into a cash cow. Currently there are two tenants living there. Hypothetically lets say I buy this house, do I pick up their old lease where the previous landlord left off? Or does it become null and we either make a new one or they have the option to move out. Which is another discussion entirely. I DO NOT want to fight to get a tenant out on the first buy(or ever really) lol.
I was reading "Buy It, Rent It, Profit!" earlier today and Bryan Chavis is all about seeing bank deposits to ensure rent payments are whats on the lease and what the owner claims. Now he was talking about large multiplex properties here, and I'm not sure I can ask the same of the current owner. Although I would like to.