Where should I get a buy and hold property

Question

I have 15k down and a pre-approval for a 15% down loan for an investment property. Where should I buy where I can at least get some appreciation at that low of a price point. In leaning towards Tulsa Oklahoma.

I am continuing to save between 1.5-3k per month but I really want to use up my loan and get a better job such as a trade.

Brandon Neth · Answer

Tulsa is starting to blow up! We're seeing a lot of strong numbers for sales and rents.Find a good wholesaler, you can find $95k all-in places with a bit of work.

Michael Slockers · Answer

@Saxon Cantrell So you have 15k which means you can probably get a 95k house? Does that leave you any money for reserves?

95k houses aren't as easy to find in Tulsa as they used to be (duh) but it could be done. If you need 95k all-in with no fixes necessary, that could be a challenge. In the current listings I see only one that would meet that criteria...

Alex Olson · Answer

@Saxon Cantrell Where do you live? If you live close to tulsa, then yes I would go that route. If you are in a non cash flowing state like CA or NY then I would look to a place where you have visited in the Midwest that you like, where close friends and family live...if none of those exist in the Midwest, then I would research areas like tulsa, KC, OKC, STL, Cleveland, etc...to see what market makes a good fit. I am big on KC because I live here...and is a great market. Many call it the next Denver...but maybe on a smaller scale.

Saxon Cantrell · Answer

@Michael Slockers I completely agree. Normally I wouldn't consider it. However I'm also taking into account the new better paying jobs I'm gonna go for, the 2 year job requirement got regular back loans will reset when I change jobs, taking my first step rather then being stuck in analysis paralysis. Things like that. I would only get my first property if my regular job could float all the expenses.

Michael Slockers · Answer

@Saxon Cantrell

I would think some more about the credit card idea... This house you get isn't going to be a cash flow machine. If you put a $1000 repair on a credit card the cash flow from the house wouldn't pay it off for months.

I don't recommend buying anything until you have some reserves!!!

Johnny Wolff · Answer

Your call Saxon - I'm located in KC, and I even here I wouldn't recommend homes priced less than $150K.  Anything lower is in ultra high crime areas or in more rural areas.

Saxon Cantrell · Answer

@Johnny Wolff I'm trying to buy Sooner rather than later so I can change to a better job. I would rather put whatever I have down and then do repairs on a credit card if needed then waiting what could be up to a year to get 30k. I'm currently living with my brother. me and my wife just got married and we want to get our own place and have kids sooner rather than later. I'm hoping that once I get my new better job probably a trade job that in two years me and my wife can move out into our own place and have kids. But I want to use up the home loan I've been pre-approved for before changing jobs.

Johnny Wolff · Answer

@Saxon Cantrell - wait into you have $30K and buy in a good area and city.  It will be worth it.

Saxon Cantrell · Answer

@Michael Slockers it would not leave me any reserves aside from credit cards. I'm not worried about reserves to much since this will be my first property and everything is so cheap down there compared to Seattle. I'm putting away good chunks of money every month so soon I'll break the 100k mark and open some options. My understanding is 100-150k is a sweet spot for the area.

Saxon Cantrell · Answer

@Alex Olson I'm by Seattle, WA. Cash flow seems to be hard to find nor do I have the down payment. Unfortunately I have no family outside of Washington or have visited anywhere outside of Washington.

Where should I get a buy and hold property

Most Popular Reply