Just starting out and the numbers don't make since to invest.
Hey everyone, I am just getting started and I have been trying to run some numbers and nothing thus far even comes close enough to even think about it. Houses in this area of the midwest are either too high priced or the rents are too low. I see all of these deals everywhere else and think, I sure wish those deals were around here.
For example I was looking for lower priced houses and there is really nothing under about the 50-60K mark and those are is the junkier side of town and rents are maybe 450-600. I came across a pair of duplexes that were decent but the neighborhood is so so as well, those are priced at 87K and 81K, but the current tenents in 3 of the 4 units are paying $300, 400, 475. The 1 vacant unit they said gets $575. Then the landlord pays the water,sewer,garbage ($50/mo each). So at those rent prices and with loans in the 15-20yrs range the numbers just don't work. Saw some side by side duplexes built in like the early 2000's but those are running $200-250K with rents maybe around $1200 each. I would like to stay in the lower $$$ range to keep costs lower initially.
We have tons of mobile homes in our area as well and I have thought about those because at an investment vs rent is looks better. I am in no rush but keep thinking that if those numbers stay like that then how could one invest?
My previous house I sold and made some good money on after living there for 10 yrs and subdividing the land up it was on. Just sold one parcel and closed today on it on a CFD for $363/mo for 5 yrs. Have the other piece to sell yet but looking for the 1st rental. I have almost 50% equity in our current home as well so I am not doing to bad to start but going further looks kind of dim. If the numbers looked like the above what would you do. Would you invest in Mobile homes if the numbers were better?
Appreciate the feedback.