The MLS is one of the best places to find real estate. Not only does it have retail, move-in ready, properties, most bank owned repos and HUD properties are also on the MLS. On the other hand, as a buyer, you face a lot of competition. Sellers know that to maximize sales price, they should list on the MLS. The MLS creates a very efficient market for real estate.
On the other hand, some repos are underpriced relative to the cost of repairs and most first time buyers will not consider repos. First time buyers prefer move-in ready properties. Many, but not all, HUD properties are underpriced because the FHA appraiser has strict rules about how to count bedrooms and square footage. Some properties are in such poor condition that they are not eligible for conventional financing. In summary, there are deals to be found on the MLS as long as you are able to jump quickly when you see one.
There are other alternatives to the MLS. One of the best sources of information is your title company. You may request a farm list and try a letter-writing campaign. For example, you can call the customer service department of a title company and ask them for a farm list of all out-of-state owners who own duplexes in a certain neighborhood that you like. You could then write a letter to each owner to see if any of them wants to sell. Out of town owners sometimes have a property left over in their previous town that they would really not like to own anymore. Some have tenant problems or property management problems.
There was one time when I saw a listing for a fourplex. The numbers seemed to work, and the area was rapidly appreciating. From the county tax records, I obtained the names and addresses of all the other owners on the streets. I asked each if they wanted to sell, found two who were interested, and ended up with two others on the street for 40k less than the asking price of the one on the MLS. In a rapidly appreciating area, owners who have not talked to real estate agents may not realize how high values have actually risen and have old pricing in mind.
You could also search court records for eviction actions. They would be started by owners with bad tenants who may be tired of their investment.
You can also buy foreclosures on the courthouse steps (these are advertised on auction.com), or buy pre-foreclosures (you can get these lists from a title company). These are also non-MLS options.
Estate sales are also a great place to find motivated sellers. Heirs usually do not want property, they want money. Because it is “found” money, it does not matter how much money the previous owner has into the property or if the seller is selling for a loss. They just want quick cash. To find estate sales, make friends with probate lawyers or look for estate sales of furniture and ask if there is a house for sale too. Check legal notices in newspapers. There is a course called Diamond Farming by Gary DiGrazia Sr. that discusses how to buy estate properties in California.
You could also drive around town looking for properties with overgrown lawns or deferred maintenance and contact the owner. You can find owners for properties using public records just as county tax assessor records. You can find the web address of the assessor of any county using sites such as www.netronline.com