What is a “good deal”

4 Replies

Market for them. In this market most agents won't be able to bring you great deals. Margins are tight. The super great ones are snapped up before they hit the market. A good deal is where you can buy substantially below market and either rent it out or resell.

@Meshael Eady Good deal is a very subjective term. For instance, a good deal for a public REIT might only yield between 4-6% but that would not suffice for smaller investor. The quality of a deal is dependent on many factors including how much time/effort you're willing to put into it, market, budget, size, among other factors.

If you provide us with more clarity around your budget, goals and objectives, I'm sure someone will be able to guide you. 

My goal is to obtain a 4 unit within the next 12-18 months using the FHA 203k loan. Nothing that needs major repairs but enough to be able to fix it up and add substantial equity. I am in Brooklyn NY so i am budgeting for 450k-650k. besides comps and rent what exactly do i look for?

One thing to look for is the ability to force appreciation, mainly with updating the apartments. If you can find a multifamily that needs updating you could potentially get it below market value and really increase your equity from the renovations. 

The tough part is you're working in the realm of a lot of other investors and developers that are coming in with high cash offers because they know they can purchase a place, renovate it, and hold it for 3-5 years before it skyrockets in value.