Buying in Competitive Markets

[Satyam Mistry]

Hello, curious to know what strategies buy and hold investors are using in a hot market and through what sources. I am currently in the Omaha market. Not doing any paid marketing at time being, but spending more time networking. 

1. What kind of properties are you buying?

2. In your market are you seeing more opportunities with single family or multi family properties? If the numbers on multi family are not what you are looking for do you still look at single family opportunities?

3. How are you finding these properties? MLS, off market, short sales, foreclosures, auctions?

4. What terms have you been financing at and what cash on cash % return do you look for on 20 year or 30 year terms?

[Anthony Gayden]

Originally posted by @Satyam Mistry:

Hello, curious to know what strategies buy and hold investors are using in a hot market and through what sources. I am currently in the Omaha market. Not doing any paid marketing at time being, but spending more time networking. 

1. What kind of properties are you buying?

2. In your market are you seeing more opportunities with single family or multi family properties? If the numbers on multi family are not what you are looking for do you still look at single family opportunities?

3. How are you finding these properties? MLS, off market, short sales, foreclosures, auctions?

4. What terms have you been financing at and what cash on cash % return do you look for on 20 year or 30 year terms?

I am buying single family homes since I see more opportunities for single family than for small multi-family here in Omaha. I find my properties through the MLS. Pickings have been pretty slim and deals go very quickly if you are looking at things on the MLS. I have only been buying one property a year though this year I am doing a 1031 exchange so I will likely buy more.

In terms of financing, I still have the ability to get 4 more conventional mortgages since I only have 6. My lender requires 15% down for non-owner occupied single family homes with 30 year fixed financing. After all expenses my houses cash flow $200-300 a month.