Hello, fellow investors.
I kept overbid and lost the deal for my rental property offers although my offer price is way below 1% rule of rental income vs price (for example, I offer $200~220k cash for $255K listing with no contingencies when the rental income is about $1.5K/month).
I am wondering if I just have to pay almost full price if it has a good/stable rental income in a great location to start.
Any good advice will be appreciated. Thx
By definition, the purchase price of the property is market price.
@John Lee Hey John! This question will also vary by city and state. It is still a hot market and interest rates are low so you can think of it as a trade off for a lower payment. A lot of investors are just riding the wave of high prices and still having to offer at market value or very close. However, this strategy will not work for everyone so just make sure the numbers work out for you.
By "Market price", I mean the average price of similar homes selling in the market. I could buy below market or above market price. Thanks for your advice, Melissa.