I’m curious about what the strategy could be for buying on expensive markets as I want to start in Real Estate but I don’t see how. Any ideas??
After looking at the MLS for months now It is hard to believe that it is a good time to invest in Buy & Holds for SFR's as the standard is not meeting the 1% rule (.5 in avg). I would say flipping houses, wholesaling or BRRRR for CASH only sales or Short Sales once every blue moon are the best ways to jump into real estate.
What would you do to start in RE if you were in an expensive market where cash buying properties is no option? (I have limited funds).
There are many helpful strategies to use if you have limited funds. You could partner with somebody, wholesale a few houses to get cash, etc. There is always a way.
Secondly, I'm not a fan of the 1% rule. It's one of the most well known, so called "analysis tools" out there that doesn't even make sense?! I have found many deals, and hardly any of them meet the 1% rule. I could care less whether my rent is 1%, because that doesn't define a good deal. I would drop the idea that the 1% rule is something special in a deal. Focus on COC return and cash flow, those are the most important numbers to look for in a deal.
True, it's a bullish market right now, but people are still buying deals all around! It might depend on your market. For example, my city is pretty expensive, so there's hardly any deals to be found. But, try surrounding cities. Also, once you've found the right price you can buy the property at, you can always make that your offer, even if it's low. Try looking at off market properties. Ask your friends and family, "Hey, do you know anyone who wants to sale their house, but hasn't put it on the market yet?"
I've seen from others that, in this market, the best deals are found off market, not online.
Hope this helps.