Low Ball Offers: How Low Have you Gone?

[Drew Bursey]

Hello Everyone,

I was looking at some properties and the numbers (based on the price and current rent) don't work for a decent ROI greater than 8%.
If the property was $20,000-$30,000 cheaper the numbers would work (8% ROI). Is that too low?
Have you offered a lot lower than the asking price? How much lower have you purchased a property for?

This will be my first property, would you suggest getting a property that has a decent ROI or would you recommend just getting a property that cash flows (say 4-5%ROI) so that I gain experience? I've watched Brandon Turner's videos and he wants a minimum of $100 per door, is that a minimum you go for as well?

Thanks

[Theresa Harris]

Some houses don't work as rentals plain and simple.  Unless a house is overpriced and has been sitting on the market for months, it is unlikely that an owner will take an offer 8% below market value.

As for price per door, that is subjective.  You can get $100 per door by putting more money down, but that really isn't $100 per door.  It also depends on what you are renting it for-$100 on a place that rents for $500 vs $2000/month is very different return.  I don't focus on price per door, but on the house, expenses and rent I can get.  I'm in it for the long term.