All Forum Posts by: Benjamin Molina

You got it Sophia. Thanks for replying =)

Ah I see. Well won't that cause a bubble up here? Market rent isn't rising as much as prices. Just seems reckless to me.

I get what you're saying about sticking to what makes sense to me. I keep hearing/reading "you make money when you buy; not when you sell". So buying at a premium like that makes zero sense to me! Maybe I'm looking for the silver bullet of wisdom from someone who would make that deal but maybe the lesson is sometimes people pay too much.

So you can't get a loan for more than the appraisal amount? What if they're adding a room or something like that? Still no?

Right that's the only way I can figure - all cash and as a strict appreciation play. I mean rent would have to be at least 170-200% of the surrounding area otherwise. I'm brand new so I don't know - does this happen often? Someone overpaying for the chance at appreciation?

Right on. Yes so far the numbers don't make sense.

Greetings BiggerPockets! I am brand new to this site and to Real Estate investing in general and I'm hitting the ground running. I'm really just focusing on educating myself right now with the goal of purchasing rental income property within 2 years. I live in the Sacramento area so naturally I've been analyzing property close to me. I had my mind blown this weekend on a sale that happened. Perhaps someone could shed some light for me. There's PLENTY I don't know but this really took me by surprise. I analyzed a 4-plex in midtown Sacramento that was family owned and they were asking $575K. Looking at area rent and the property itself (built in 1880) I figured $495K was the max I could offer and still cashflow (putting 30% down and financing the balance 30 years at 3.5%). I checked up on it this weekend and apparently it sold for $658K(!?!) What am I missing? The only thing I can figure is an all-cash purchase? How could anyone make money on that deal?