Do your best w/ current market conditions or wait for better?
I understand that finding the "perfect" buy & hold property is rare. I understand the concept of analysis paralysis. I even have a quote sitting on my desk right now that says "Every successful man I have heard of has done the best he could with conditions as he found them and not waited til next year for better." But It also makes sense to me to pass on just "okay" properties if they run the risk of becoming a long term headache. So here's my question:
How can you tell when you are being too picky? VS just being strategically selective?
Here's more backstory:
For the past 12 months I have been actively searching for buy & hold properties to purchase here in Utah. I've found many properties that I liked on paper. I've been under contract on quite a few (probably 12 or so). But in my due diligence I find too many imperfections such as:
- Zoning issues
- No building permits pulled with city/county
- Too much rehab needed for the price
- Conventional lenders won't lend on it (non-warrantable condo, two houses on one parcel, etc...)
- The improvements I want to make aren't allowed by the city
I struggle to find anything that comes close to the 1% rule here in Utah, Wasatch, and Salt Lake counties. When I do, it has the above listed issues.
I also, feel like (at least in Utah) we are at the peak of the market. Things still could go higher but I feel like I am buying high. So I am hesitant to tie up all my available down payment funds on properties in the peak of the market when, should things stabilize in the near future, it would be better to buy low if it did stabilize.
I'm well aware of better buying power in the Midwest and how ROI is better there. But I'm not there and don't like the idea of owning out of state.
I know there is money to be made in real estate with any market.
So am I being too picky? Do I need to change my strategy? What should be my mentality here?