Good or bad: Overpaying for a property with reasonable cash flow
Hi BP friends - I have a question and hoping some of you could share your opinion. I will go ahead and post the question, feel free to answer it and/or keep reading to get my full situation. Is it worth overpaying for a property if it cash flows well?
Further information: There are a few townhomes in the Harford County, MD area that are turnkey and tenant ready. Living in D.C. with a slim savings account (just enough for a down payment and blind start-up costs), they intrigue me [due to that being the nicest area I can invest in] but they are what you would consider an average price for today's market (very high). These 3b/2.5ba would cash flow anywhere from $400-$800 with the rates my lender gave me.
Knowing the market won't be this high for long and that I'm possibly overpaying for a townhome compared to what the usual price would be at this moment in time without the Real Estate boom, I'm nervous about putting in an offer for the long run. My goal is to ultimately cash flow but I don't want to be in a rut if I wish to sell and buy bigger in a few years.
Any advice on this matter helps. Also, any advice is also welcome for investing along the 95 area in Maryland (specifically Baltimore and above). If you're in NW D.C., feel free to DM me, looking to buy someone coffee to pick their brain for 20 minutes.
Thanks in advance.