#AskBP 092: Should I Invest in $30,000 Houses?

Expertise: Landlording & Rental Properties, Personal Development, Real Estate News & Commentary, Business Management, Flipping Houses, Mortgages & Creative Financing, Real Estate Deal Analysis & Advice, Real Estate Wholesaling, Personal Finance, Real Estate Marketing, AskBP, Real Estate Investing Basics
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Should I Invest in $30,000 Houses?

Yes, it’s possible to buy houses for as low as $30,000. But is it always a good idea to buy the lowest price property? That’s the question Brandon tackles on this episode of the #AskBP Podcast. Brandon shares his own story of buying a low priced property that soon turned into the “Hell House.” You’ll learn when is the right time to buy cheap – and when you should quickly run away!

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Brandon Turner is an active real estate investor, entrepreneur, writer, and co-host of the BiggerPockets Podcast. He is a nationally recognized leader in the real estate education space and has tau...
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    Tom Phelan
    Replied about 5 years ago
    Your rental from Hell sounds like a Duplex I once owned, purchased it and total restored it and the tenants trashed it in six months, Many terrible tenants later I dumped the house for a lost of ably $10,000 but oh what a relief it was!
    Brandon Turner Investor from Maui, HI
    Replied about 5 years ago
    Yeah, I’ll sell mine sometime soon. I just don’t wanna lose money on a sale, but I’m almost to a break-even point 🙂
    Wilson Churchill from Madison Heights, Michigan
    Replied about 5 years ago
    It’s best to use Section 8 for problem houses if possible. I had one house that seemed to attract crazy people. I now have it rented to a section 8 tenant that plans to stay for years.
    Brandon Turner Investor from Maui, HI
    Replied about 5 years ago
    Hey Wilson, that’s actually pretty great advice! What I ended up doing with my Hell House was gave it over to another property manager to deal with. So far, it’s okay… but they don’t mow their grass ever and the PM doesn’t seem to care. So I have to continually harp on the PM now. Oh… hell houses!
    Esteban Maroto Flipper from Cartago
    Replied about 5 years ago
    Hi Brandon, you said you preferred $100.000 houses, but how do you get there? I mean, how do you start buying houses worth $100.000 if you don’t get some $50.000 or less houses to start? Even if you sell them later? And other question: I have an offer to buy a house with a little apartment which both costs $55.500 in downtown area of one of the cities in my country. As far as I know it doesn’t need repairments because it was recently vacated. It is a low to mid class neighborhood, with houses builded 15 years ago. I think it is a good oportunity to start having a house for renting (due to its low price and low rental price), but some people say that it is not a good neighborhood and I could possibly have problems with tenants… What do you think about an option like this? Of course I would like to get to the $100.000 houses, but what other paths are there? Congratulations on your success to build this Real State Investing Network. I am really happy to be part of this.
    Edward Synicky Rental Property Investor from Yorba Linda, CA
    Replied about 5 years ago
    Its like everything in life, do your due diligence and lower your risk. I purchased a $32,000 house in Toledo Ohio 5 years ago, cash as few conventional lenders will lend that little. It rents for $625 a month and has been rented to the same family with a few minor repairs. Essentially I almost have a free house at this point. I didn’t buy this home for appreciation as there is little of that in Toledo, I simply purchased it for the cash flow that I spend each and every month enjoying all of my passive income from real estate. I purchased it from a local Toledo Broker/investor with a long track record of success. I did not remove all risk but I reduced the risk to a minimum. So at the right time of your life and with the right partner, purchasing “cheap” houses can be very profitable and not that risky. If you have made a mistake then just liquidate and move on. You get rich in real estate by making more right choices than wrong choices, in the end you win. Mistakes are just part of our investment experience and everyone we make leads to a better decision the next time.
    Esteban Maroto Flipper from Cartago
    Replied almost 5 years ago
    Thank you very much for your advice. It is very valuable for me.
    Ben Leybovich Rental Property Investor from Chandler/Lima, Arizona/OH
    Replied almost 5 years ago
    OK. So, I could be wring, but that almost never happens 🙂 And with this in mind, I do believe that Ben Leybovich would have been best qualified person to answer this particular question and record this podcast. Yous was a nice effort, but…
    Darrell Lee Investor from Springfield, Vt
    Replied almost 5 years ago
    Well… I buy $150k houses that are bank reo’s but I only pay around $30k for them that generally need $10-40k in renovation costs.
    Lisa Phillips Real Estate Investor from Arlington, VA
    Replied almost 3 years ago
    The answer is YES, if you know what the HECK you’re doing! A lot of people dont know what their doing, but many people do. All we do is teach is sub30k and you have to be as thoughtful and methodical in this price range as any other. That’s it. Its actually easy, and we’re cleaning up. However, if you’re uncomfortable with any demographic, stop just looking at the money and measure your own comfort level. Im just surprised they are still asking this question since its been definitely validated, taught (my profile) and discussed in detail.