I have been reading like crazy, talking to a few realtors, and watching plenty of videos. I have punched some numbers and there is some potential.
Basically, I am in charge of my family's RE ventures. This will be our first step back into RE after about 10 years of not owning a home. Although I am out-of-state, I have family and friends in the locations that I am reviewing. My near-term goal is $1,000/mo cash flow. I have about $35-50k in cash available and have reasonable access to a private lender. I am thinking about areas I might be comfortable venturing into and would really appreciate some feedback on my location choices, financing options, and how to get started.
Location I have friends or family in the following areas and have found the following properties.
OR - $140k Four-plex that that earns $2240/mo, really needs polishing in a metro area of 80k with %1 vacancy. There is an adjacent property with two five-plex buildings. Owner wants to sell the tree together for $450k
OR - $100k Four-plex that really needs polishing. $1,600/mo. (owner claims room for increase) New roof. Town of 10k. Small apartments (350-380 sqft) and the rents average $1/sqft for 6-800 sqft in the area.
AZ - $70k Cute duplex on large lot. Rents $1000/mo in a satellite community of Phx. Needing maybe about $5k in repairs. Seller claims an ARV of about $100k. Eager to move it.
AZ - $135k Functional four-plex in same area. $2170/mo. Seller is eager to move it and three other similar properties.
TN - $20k SFR foreclosed half way though a rehab. New electric installed. Inside floors and walls are down to the stud. Will need significant work before it can be flipped or rented. There are three other houses in the same area for $32k. Some need major cleaning to be rentable, but no remodel. Two properties are in a small town of 4.5k the others are about 5 miles away in a rural area near a friend's house.
I might be able to flip the property in TN with a friend that is a contractor to get more capital.
I can punch the numbers just as well as any of you...but I am asking about taking a step back and looking at what looks to be the most successful plan of attack for accomplishing the goal. I'm sure there are plenty of questions to be asked so fire away!
Hey @Reuben H. you can do this! Why not start small - buy some rural vacant land for say $500, sell for $1500 and keep growing your acquisition balance to where you are comfortable enough to make some other decisions? And while you are doing that you can sell a few of the nicer properties with owner financing and sit back and collect $199/mo per property for doing nothing. Totally not crazy. A ton of us are doing it. Great way to get rolling in real estate and since you are paying cash for everything you don't have to worry about credit - AND - you will sleep well at night because everything is paid for. Hope this helps!
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