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Daniel Gray
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Having trouble finding a deal

Daniel Gray
Posted

Hello BP. I've been educating myself on real estate investing over the past few months. I have all the tools at my fingertips and know what my goals and limitations are. I'm finding it very hard to locate a buy-and-hold rental that will bring in $100 cash flow, 10% COC, 12%ROI property. It seems that no matter the purchase price, in order to get these numbers the rent will have to be higher than the area can support. Is this a sign to hold off and wait for a market change? I've built a team of brokers, lenders and property managers that are helping, but finding even a single property that meets my investment goals are just not there.

As an example, I plan on borrowing $130K, 20% down, 5% APR. To reach my goal, rent would have to be at least $1,450/mo. Houses at that price (and even 20-30K higher ask price) are only pulling in $900-$1,200/mo.

Any help would be appreciated because at this point my analysis paralysis is preventing any forward movement.

Thanks,

Dan

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