Should I overpay for a property that is out of my price range if OWC and rents more than cover the payments?

After all expenses property still cashflows, smaller downpayment, and owner will carry the financing but wants high price. I look at this as able to get into a bigger property and eventually it will appreciate to higher valuation and in meantime I get cashflow.
In Buying Property - Asked by James M. D. - Oct 29, 2012
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Sherry P.
Royal Oak, MI

Just be sure to look at it from all angles. What happens if the cashflow is interrupted?
If you had to sell the property, could you sell it for what you owe?
An item is worth whatever someone will pay for it. High or Low.

Oct 30, 2012
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Rob B.
Chandler, AZ

This is a trap that many can fall into when searching for a property to purchase. Believe it or not, there are owners that do very well by selling their properties over and over again. What can happen is the dream comes crashing down! Cash flow is interrupted for some unplanned reason. Debt service becomes harder and harder to make.
The owner then ends up taking the property back, either through foreclosure action; or often having it handed back in lieu of foreclosure. He or she then becomes the beneficiary of the down payment that was made, the interest payments before the default, with a property and market that he or she is fully familiar with.
This is a great formula for selling it again to a new buyr, with often the same results.
Your transaction may not fit into this category, but be very careful. Don't risk money you can afford to lose when providing the down payment. Also, a simple answer is “don’t overpay” for a property!
Good luck and onward and upward!
Rob Baird

Oct 30, 2012
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Monica M.
Valencia, CA

Never overpay for a property. There are way too many properties out there to purchase that will work better from a financial standpoint. Why overpay when you don't have to? Make your offer on the price that works. If they decline then MOVE ON to a different property! This business of investing is a numbers game. Don't let brokers or sellers bully you, especially since you're the one with the power. Not them.

Nov 1, 2012
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