Updated over 4 years ago on . Most recent reply
Out of state perceived value
Market value vs investment value. Will there come a point, where out of state money will pay over market value, if it’s still a better investment than they can find locally? I own a duplex in Ohio that’s worth about 75,000, it’s fully remodeled and rents for a combined 1,400 month. Taxes/insurance are just under $100 month. With certain markets going crazy, do you think there will be a time where an investor would be willing to pay 100,000 for something only worth 75,000 to someone local? It would still cash flow for them, and would be a lot lower barrier of entry than the higher end markets.
For the sake of argument let’s say they can’t find one on the mls, or at the 75,000 price range it has half assed maintenance and iffy tenants. Would you pay 25,000 over market for a sorted out rental that cash flows?