Analyzing Property Problem
I am a new Real Estate Investor in the South Central Wisconsin region. I am looking to purchase my first rental home but I am having a problem with finding properties.
The properties that I am looking at either do not met the 1% rule, or if they do when I run additional numbers on them they are cash flow negative. The few that I have found that might be cash flow positive, when I tour the place they need over $30k worth of work to get them to a stable place. I know the Real Estate market is very hot in the area that I am in. I also figure there is a lot of competition when looking for a rental.
So is this even a good time to invest? or since the market is hot, should I not worry as much about cash flow positive and if it is a cash flow neutral peruse that instead? Would I be better off continuing to save my money until the market slows down? (not sure if it will in the next 5 years) Am I evaluating the properties wrong?