Off market vs MLS

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Stuart UdisPro Member
Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
2mo

I can't tell you how many buyer lists I've somehow found myself on, receiving the same "off market" garbage that hundreds of other investors get in their inboxes at the exact same time.

I would argue you're likely facing more competition pursuing these deals because there is nothing worse than competing for a property with a large group of inexperienced buyers who seemingly gravitate towards the "off market" properties. 

Meanwhile, there is gold on the MLS every day. Properties with incorrect zoning, understated square footage, poor photos, incomplete descriptions, or other issues that cause buyers to overlook them. Sometimes even price and all it takes is the one buyer to submit an offer and be pleasantly surprised.

The ability to truly know your market, recognize when something seems off, and investigate further has made me far more money buying properties on the MLS than chasing supposedly off market opportunities.

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  • Evan HoppleBusiness Member
    Real Estate Agent · Columbus Cleveland Dayton, OH · Member since 2023 · 284 posts · 420 votes
    2mo
    Quote from @Account Closed:
    For out of state single family home investors, do you prefer most of your deals being off market properties or one that are listed on market?


    I'd cast as wide of a net as possible. Off-market properties often have less competition and can provide better opportunities to buy below market value, but there are still plenty of great deals on the MLS.

    Some of the best opportunities come from properties that are overlooked, poorly marketed, or have been sitting on the market. Limiting yourself to either off-market or MLS means you'll inevitably miss deals, so I'd focus on having multiple deal sources and evaluating each opportunity on its own merits.

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  • Jordan RayBusiness Member
    Real Estate Agent · Memphis, TN · Member since 2023 · 630 posts · 322 votes
    2mo
    Quote from @Account Closed:
    For out of state single family home investors, do you prefer most of your deals being off market properties or one that are listed on market?

    Welcome to BiggerPockets! I don't have a strong preference as long as the numbers work. Some of my best deals have come from the MLS, and others have been off-market. I think newer investors sometimes spend too much time chasing the idea that every great deal has to be off-market, when in reality there are plenty of listed properties that make excellent investments if you know how to analyze them. I focus on underwriting first by looking at the ARV, rents, rehab costs, market trends, and the overall neighborhood. If the deal pencils out, I don't really care where it came from. Here in Memphis, there are still opportunities to find listed properties under $150K that can meet or exceed the 1% rule while also benefiting from appreciation over time if you buy in the right locations. If I'm using the BRRRR strategy, another advantage is that local hard money lenders can finance 100% of the purchase and 100% of the rehab, with draw requests throughout the renovation so investors don't have to front the rehab costs themselves. Many investors are able to complete deals with around $10,000 out of pocket before refinancing into long-term financing. Whether you're buying on or off market, the biggest advantage is having a strong boots-on-the-ground team—an investor-friendly agent who also owns rentals, a solid property manager, a reliable general contractor, and the right hard money and DSCR lending contacts. That team will help you identify good opportunities regardless of where they're sourced. Feel free to reach out, talk soon!

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  • Amit PatelBusiness Member
    Property Manager · Bartlett, IL · Member since 2025 · 148 posts · 59 votes
    2mo

    For out of state single family investors both can work, but it usually comes down to how strong your local team is.

    Listed properties on the market give more transparency. You can see comps, history, and standard disclosures more easily, which helps when you cannot walk the property yourself. The downside is more competition and prices that are often closer to full market.

    Off market deals can offer better pricing and less competition, but the risk is higher from a distance. Information is sometimes incomplete, and you rely even more on your local agent, inspector, and property manager to catch issues. Without a solid local team, off market can turn into expensive surprises.

    Most of the out of state owners we work with end up doing a mix. They watch the MLS for clean, well priced properties and only chase off market when they have trusted people on the ground who can verify the deal quickly.

    If you already have a reliable local agent and inspector, off market becomes more attractive. If you are still building that team, listed properties are often the safer starting point.

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  • Ismael El Hamdouchi
    Member since 2025 · 68 posts · 28 votes
    2mo

    I think it depends on the stage you’re in. If you’re buying remotely, I’d rather lose a little on price than lose confidence in the information I’m getting. MLS deals tend to have cleaner data, easier inspections, and more transparency, which can make the first few acquisitions less risky. Once you know a market well and have strong local relationships, off-market opportunities become much more valuable because you’re competing less on price.

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  • Stuart UdisPro Member
    Attorney · Philadelphia · Member since 2018 · 2k+ posts · 3k+ votes
    2mo

    I can't tell you how many buyer lists I've somehow found myself on, receiving the same "off market" garbage that hundreds of other investors get in their inboxes at the exact same time.

    I would argue you're likely facing more competition pursuing these deals because there is nothing worse than competing for a property with a large group of inexperienced buyers who seemingly gravitate towards the "off market" properties. 

    Meanwhile, there is gold on the MLS every day. Properties with incorrect zoning, understated square footage, poor photos, incomplete descriptions, or other issues that cause buyers to overlook them. Sometimes even price and all it takes is the one buyer to submit an offer and be pleasantly surprised.

    The ability to truly know your market, recognize when something seems off, and investigate further has made me far more money buying properties on the MLS than chasing supposedly off market opportunities.

    [email protected]
    2Reply
  • Jimmy LieuBusiness Member
    Real Estate Agent · Columbus, OH · Member since 2019 · 3k+ posts · 2k+ votes
    2mo
    Quote from @Account Closed:
    For out of state single family home investors, do you prefer most of your deals being off market properties or one that are listed on market?

    Hey Luke, for me it's a mix, but I wouldn't limit yourself to only chasing off-market deals. Some of my best rentals actually came from the MLS because they had been sitting for a few weeks, were priced too high initially, or needed cosmetic work that scared off retail buyers. Off-market can definitely be great if you're getting a real discount, but they're often more competitive than people expect these days. The most important thing is buying based on the numbers, not where the deal came from. Since I invest out of state myself, I also like listed properties because you usually have more transparency with disclosures, easier access for inspections, and a smoother closing process. Happy to connect and answer any questions you have!

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  • Patrick DruryBusiness Member
    Real Estate Agent · Columbus, OH & Cleveland OH · Member since 2021 · 1k+ posts · 2k+ votes
    2mo

    @Account Closed 
    It doesn't matter if it's on or off-market; it just comes down to if the numbers work and what the comps in relation to the area. I would look at deals in both realms and not limit yourself to just looking at off-market 

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  • Kerlous TadresBusiness Member
    Realtor · Columbus, OH · Member since 2023 · 1k+ posts · 1k+ votes
    1mo

    I'd honestly lean toward on-market deals most of the time, since you get more transparency, cleaner comps, and inspection contingencies that protect you when you can't walk the property yourself. Off-market can score you better margins, but from my experience, it takes real boots on the ground and a trusted local team to vet those deals

    [email protected]614-490-1163
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  • Jules Aton
    MD/DC · Member since 2024 · 1k+ posts · 1k+ votes
    1mo

    I've done both and have seen both that were good or not good deals so it depends on the property and the situation.  Most importantly just because off market doesn't mean it is a good deal. 

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