The $30k rental club.......

The $30k rental club.......

Las Vegas, NV · Member since 2018 · 100 posts · 140 votes

Im sure many of us have read all the warnings and reviews of buying low price properties, and the problems typically associated with them, but all that considered, it is what first attracts a lot of people , indeed this is the only path available to some, its a start, so lets explore whats real and possible.........

lets use Detroit, Cleveland, Michigan and Indianapolis as examples where possible ,and set a ceiling of $30k

Personally i dont see the return on higher priced properties attractive enough to invest $80 to $120k plus, and before anyone starts preaching about the pitfalls, ive done this before, over 30 properties over 20 years, just in another country, low cost houses in deprived areas, i know what can go wrong.

The first attraction here is the low cost, funding with personal loans and credit cards etc,  is possible, and with high returns , quickly repaid, whereas a large mortgage is on your credit file for years, and has to impact further borrowing, and cannot easily be cleared temporarily in the same way credit cards can, if your credit needs a boost !

How easy is it to get a portfolio of say 3 x $30k properties you own outright (wherever the funds came from !) and then refinance into one loan after 6 months or a year ?........and then repeat this process ?

This is more attainable for a lot of people surely ?

So, anyone with a similar train of thought ?, anyone already doing this ?, any input would help........

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Rental Property Investor · Detroit, MI · Member since 2015 · 82 posts · 548 votes
7y
Originally posted by @Account Closed:

Im sure many of us have read all the warnings and reviews of buying low price properties, and the problems typically associated with them, but all that considered, it is what first attracts a lot of people , indeed this is the only path available to some, its a start, so lets explore whats real and possible.........

lets use Detroit, Cleveland, Michigan and Indianapolis as examples where possible ,and set a ceiling of $30k

Personally i dont see the return on higher priced properties attractive enough to invest $80 to $120k plus, and before anyone starts preaching about the pitfalls, ive done this before, over 30 properties over 20 years, just in another country, low cost houses in deprived areas, i know what can go wrong.

The first attraction here is the low cost, funding with personal loans and credit cards etc,  is possible, and with high returns , quickly repaid, whereas a large mortgage is on your credit file for years, and has to impact further borrowing, and cannot easily be cleared temporarily in the same way credit cards can, if your credit needs a boost !

How easy is it to get a portfolio of say 3 x $30k properties you own outright (wherever the funds came from !) and then refinance into one loan after 6 months or a year ?........and then repeat this process ?

This is more attainable for a lot of people surely ?

So, anyone with a similar train of thought ?, anyone already doing this ?, any input would help........

Hello, yes I've done this in Detroit for 9 years now and some properties were purchased for $1000.  At this point I own 9 properties (10 door) free in clear in Detroit. All occupied, making around $7100 per month. I've already made my initial investment back on almost all the properties and am now seeking a blanket loan on my portfolio. My guess is the total value of the properties as a whole today are $469k. So at 32 years old I owe $469k worth of real estate. But the good news is if the market go up next month or next year I could be worth $600k, then next year maybe $1 million. And i'm confident that the market will go up because it's already hit rock bottom so there's nowhere to go but up from here. Also there's a lot of big investment going on in the city now. I am currently look to purchase a condo in Vegas as well and hopefully moving down there soon. Thanks for you post!!! We need more opened minded people on here that can appeal to the masses without a ton of money.

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  • Rental Property Investor · Indianapolis, IN · Member since 2017 · 54 posts · 18 votes
    7y

    Hey all!

    My name is Amil and I'm in an investor in Indianapolis. Just found this thread and it has some amazing content! You guys are killing it here! I have a similar philosophy and I'm wondering if there are any others located in Indianapolis who want to connect, share contacts, share ideas, etc.

    Thanks

    Amil

  • Member since 2019 · 17 posts · 16 votes
    7y

    Lenders:

    Ei8ht Street Funding told me they have an affiliate program that can lend on these under 50K properties in Detroit with reasonable interest rates, but you need to be living in MICHIGAN to qualify. 

    I don't.

    For out-of-state investors, portfolio lending seems to be the way to go - I've been told a portfolio value of as little as 100K can qualify me for reasonable refinancing rates.

    For the little guy (me, right now): I'm still on the hunt for a lender to refinance my two properties values 40K to 50K each, so I can purchase more property. My newest lead is Lima One.

  • Investor · Arroyo Grande, CA · Member since 2014 · 1k+ posts · 1k+ votes
    7y
    Originally posted by @Kere Jenner:

    Lenders:

    Ei8ht Street Funding told me they have an affiliate program that can lend on these under 50K properties in Detroit with reasonable interest rates, but you need to be living in MICHIGAN to qualify. 

    I don't.

    For out-of-state investors, portfolio lending seems to be the way to go - I've been told a portfolio value of as little as 100K can qualify me for reasonable refinancing rates.

    For the little guy (me, right now): I'm still on the hunt for a lender to refinance my two properties values 40K to 50K each, so I can purchase more property. My newest lead is Lima One.

    Kere, if you own a $40k and $50k property it's easy to refinance out of those. DM me and I'll send you Joe Randall's info at LevelOne Bank. He's working on a cash out refi (technically delayed financing) for me right now on a $40k house I bought last month.

    It appraised for $45k and we're cashing out 75% of that. He does them all the time.

  • Member since 2018 · 4 posts · 1 vote
    7y

    @Ashley Hamilton

    Hello, did you all start the club?

  • Keyonte SummersPro Member
    Harper Woods, MI · Member since 2017 · 384 posts · 311 votes
    7y
    Originally posted by @Travis Biziorek:
    Originally posted by @Kere Jenner:

    Lenders:

    Ei8ht Street Funding told me they have an affiliate program that can lend on these under 50K properties in Detroit with reasonable interest rates, but you need to be living in MICHIGAN to qualify. 

    I don't.

    For out-of-state investors, portfolio lending seems to be the way to go - I've been told a portfolio value of as little as 100K can qualify me for reasonable refinancing rates.

    For the little guy (me, right now): I'm still on the hunt for a lender to refinance my two properties values 40K to 50K each, so I can purchase more property. My newest lead is Lima One.

    Kere, if you own a $40k and $50k property it's easy to refinance out of those. DM me and I'll send you Joe Randall's info at LevelOne Bank. He's working on a cash out refi (technically delayed financing) for me right now on a $40k house I bought last month.

    It appraised for $45k and we're cashing out 75% of that. He does them all the time.

    Hey @Travis Biziorek can you DM me his info also?

  • Phoenix, AZ · Member since 2019 · 8 posts · 8 votes
    7y

    Stuart, Thank you for asking this question. I am looking to begin and this is my starting place as well.  I know the cautions people have shared, but I also know about having access to just enough capital to get started.  People have surely invested more for less return - student loans, stocks, a wedding!  

  • Upland, CA · Member since 2018 · 4 posts · 2 votes
    7y

    Thank you for your comments, I'm looking to start in that range then "graduate" to "bigger" higher priced properties. That said, I'd appreciate some guidance even a mentor that has SUCCESSFULLY done this, purchased 30K properties, and built a profitable portfolio. 

  • Tallahassee, FL · Member since 2017 · 4 posts · 2 votes
    7y

    My first property was a 12,000 K mobile home. That one home allowed me to purchase 4 more. I am thankful for those 30K properties and they have been a great benefit for my portfolio 

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