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How do you identify deals while looking for properties?

What tells you that its a good deal.

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Mark’s Answer

1st & for most DO YOUR HOMEWORK. Don't trust on anyone, outside people you pick, to be 100% truthful about the property.
2nd. YOU hire a Licensed Housing Inspector. NEVER EVER use any inspector the seller says to use or even hints to use. Red Flag
3rd. If your research finds you that it will do what you want it to do all the way around then it's considered a good deal.
things like: COST-If a property is say 35k, as is, built back in 56, take 6k to fix it up for future use & the same property, as is, same layout-so on
was built in 73 , cost 2k fix it up & cash out the door is 48k then that's considered a good deal.
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David’s Answer

One key criteria I look for are properties where the business plans can thrive (or survive) in multiple conditions. If your underwriting only works based on a narrow set of assumptions, you may find yourself in a challenged spot when market has unforeseen changes which is a common occurrence that humbles even the best real estate investors. Thus, be sure your property can held longer than you expect and with assumptions far more conservative than you initially underwrote.
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Brandy’s Answer

I can agree with Mark, dont take references from the seller group. Build a relationship with inspectors and contractors that you trust. When I look at a property, I consider what small changes can be made to make the biggest impact to the overall value. For example, in my current property, I need to add a closet which ranges from $800-$1500 depending on the design but the ability to then list a 3 bedroom home with an office turns into a full 4 bedroom home. In my area, that can increase the overall value by around $25k. The home itself is rather new so doesnt need much fixing up and the revenue has to come from other upgrades that would make it more attractive to a buyer.
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