buying tenanted properties 30 k and under

24 Replies

Hi All ,

I am going to be spending 150k on properties 30 k or under , my goal is to purchase 7 properties that are all cash flowing.

Once this is achieved I plan to take a loan against the value of these properties and do it all again.

Hopefully I'll be able to acquire around 10 properties bringing in around $400 each a month after expenses.

Please let me know if you think this is achievable?

Hello, what are attempting to do is possible, but depends on many factors; specifically how much your mortgage will cost per property per month. I do what you are talking about already, and have done so in a different form 30+ times. where are you looking to accomplish your idea??

@Frank Curtis , that is a common strategy to purchase then establish cash flow and then refinance to pull your cash out. If I understand you are purchasing $30k properties. Which provides great cash flow, but can have a ton of deferred maintenance from the previous owner or need a ton of rehab.

Be careful with the super cheap houses they can have a ton of problems. My advise is to carefully monitor your maintenance costs on each property. After a year or so then evaluate each individually. If one is a maintenance nightmare then sell it and get a little better place elsewhere.

Good Luck

Promotion
Sharestates
America's Private Lender
Receive Fix and Flip Funding Approval In As Little As 24 Hours!
Sharestates helps developers and brokers secure funding quickly with the most competitive terms.
Get Funded

@Seth Sherman , I am currently overseas so my mind is open. I think the midwest might offer some value and also St.Louis however this is only based on my speculating. When I get on the ground I'll be able to verify this and go from there.

Do you have any spots you could recommend based on your experience ?

Thanks

@Gavin ,

I agree thats the best way to run it IMO. Cut the cash draining properties and keep the low maintanince long term tenant ones.

@Account Closed I think you asked this same question on the Aussie site... you may want to ask the question in a different manner.

Would experienced US investors recommend someone from AU investing in 30k or under properties in big mid west towns and then trust PM to handle them for them while they live 6k miles from the properties.

The running costs.. bad tenants , deferred maintenance etc etc will no doubt cut your cash flow projections severely.

In my humble opinion since you live half way around the world you should concentrate on a small multi family or a premier SFR in a much better location than you will get as opposed in buying very low end basically ghetto properties.

James sells some nice stuff in the 50 to 60k range,, you would be safer in those price ranges...

People that make it work in 30k and under houses live in the market and its a personal hands on type of investment...

Hi James ,

Thanks for your response ,

I'll be there on the ground hands on fulltime making it work ,

I think that gives me the best chance ,

Regards

@Account Closed there you go if you are going to live there and work the assets that changes the whole thing.. you will learn by trial and error and you can even buy those properties for less than 30k a lot less once you get it figured out

best of luck.. Although I have no clue why someone would want to leave AU and all the beauty there and live in a place like ST. Lous and work in the hood.. I don't know just me I guess, and you will figure it out when you get there

Hi Jay ,

St.Louis is just a an option i'm considering , I'll be doing a lot of planning on selecting a location once I'm there but for me its basically about building a portfolio of cash flowing properties to a point where it can provide a sustainable income ,

I can speculate a lot from here but once I touch down and get into is where ill do all my learning , hands on , good or bad.

Thanks Jay

Promotion
Avail
Landlording made easy.
Best-in-Class Platform for DIY Landlords
List unlimited units, screen tenants, draft and sign leases, and collect rent—all free.
Use Avail—Free!

If your working the market yourself, it can be done. If your looking at St. Louis, it's 4 unit multi is your best bet. They are turn of the century, but the bones are good in these properties. I would stay away from the single family, C class there is a rough market.

thanks Kyler ,

Do you have any knowledge of the Milwaukee market ? I see they have an abundance of duplex and triplex properties at quite low price points ,

Thanks

@Frank Curtis Perth is awesome. I was there back in my Navy days. Really liked it.

I think your plan can certainly work, just make sure you over budget for maintenance and management. Properties in that price range are going to have ongoing maintenance issues and tenants that rent that type of property don't tend to the the easiest tenants to have. Put everyone on month to month leases so that when you find out someone is smoking meth in the property, you can get rid of them quickly.

Good luck.

Originally posted by @Account Closed :
thanks Kyler ,

Do you have any knowledge of the Milwaukee market ? I see they have an abundance of duplex and triplex properties at quite low price points ,

Thanks

Frank, if you need info on the Milwaukee market, you can give me a shout-out. I live and invest there.

@Account Closed

I like Baltimore, particularly for the type of property you have in mind. there's a term called rentership society that I am a strong believer in, and Baltimore is a perfect example of it. The real reason behind it is that people keep defaulting, wathing their credit turn to raw sewage, and banks have decided never to lend to these people again....these people being a large percentage of Baltimore.

Seth ,

The homes in Baltimore look nice , there are so many locations in the US thatboffer homes in this range , picking a place is going to be tough

Originally posted by @Account Closed :

Hi All ,

I am going to be spending 150k on properties 30 k or under , my goal is to purchase 7 properties that are all cash flowing.

Once this is achieved I plan to take a loan against the value of these properties and do it all again.

Hopefully I'll be able to acquire around 10 properties bringing in around $400 each a month after expenses.

Please let me know if you think this is achievable?

Did you ever follow through with this? I currently invest on the outskirts of Baltimore and am considering lower income areas like the ones you mention and am looking to hear peoples' experiences.

Originally posted by @Jeffrey Miller :
Originally posted by @Frank Curtis:

Hi All ,

I am going to be spending 150k on properties 30 k or under , my goal is to purchase 7 properties that are all cash flowing.

Once this is achieved I plan to take a loan against the value of these properties and do it all again.

Hopefully I'll be able to acquire around 10 properties bringing in around $400 each a month after expenses.

Please let me know if you think this is achievable?

Did you ever follow through with this? I currently invest on the outskirts of Baltimore and am considering lower income areas like the ones you mention and am looking to hear peoples' experiences.

 Hi Jeffrey ,  

I'm seeking a different route - same class but different area and different system. I did follow through is some respects but for a more expensive different class property in different place. 

I still strongly believe this market offers great value so long as you are picky and hands on or maintain close relationships with the property manager etc.

Thanks