Buying & Selling Real Estate Discussion

User Stats

859
Posts
927
Votes
Owen Dashner
  • Flipper/Rehabber
  • Omaha, NE
927
Votes |
859
Posts

What's the cheapest house you have ever bought?

Owen Dashner
  • Flipper/Rehabber
  • Omaha, NE
Posted Jan 13 2022, 07:24

Humblebrag - I just bought a house (on 2 lots) on Monday this week for $1,000! It is in a small town about an hour outside of Omaha, NE.  It is by far the cheapest property purchase I have ever been involved in. She is a beauty!

I am curious what is everyone's personal record is for cheapest property purchase and where it was located?

User Stats

408
Posts
124
Votes
Todd Goedeke
  • Contractor
  • Sheboygan, WI
124
Votes |
408
Posts
Todd Goedeke
  • Contractor
  • Sheboygan, WI
Replied Jan 20 2022, 17:19

@Jeff S., it’s the 1% rule for long term rentals. 
Subtract RE taxes and insurance and maintenance if you are going to calculate a net return.Appreciation is only realized after a sale not while it’s only on paper.

User Stats

2,753
Posts
764
Votes
Jeff S.
  • Specialist
  • Portland, OR
764
Votes |
2,753
Posts
Jeff S.
  • Specialist
  • Portland, OR
Replied Jan 21 2022, 05:45

@Todd Goedeke the 1% rule? That would be nice. Right now it is the .5% rule in my area. If you get 1% in Sheboygan that is nice. As an investor I would look at your area with your average home price of $168k and hope to get 1% or $1680 per month. I would expect to subtract 50% for "RE taxes and insurance and maintenance" and cap x netting me $840 per month on my $168k investment or 6%. With leverage paying under 6% we start squeezing out more return. I read price are skyrocketing in your area so potentially a good investment. Not sure what kind of people live there and I can't ride my bike there so a very long drive of 2000 miles.

Buy 12 of them and get them paid off for 10k per month.

User Stats

408
Posts
124
Votes
Todd Goedeke
  • Contractor
  • Sheboygan, WI
124
Votes |
408
Posts
Todd Goedeke
  • Contractor
  • Sheboygan, WI
Replied Jan 21 2022, 11:24

@ Jeff S. Continuing on your comment, I would not invest in any LTR compared to what I can earn on a STVR. You talk about a 6% return on a LTR being good. I can earn 10% net before leverage. I lease my property to a company paying me 10% ( of property cost)net, they pay all RE taxes,interior maintenance and insurance costs. 
I am a totally passive investor never lifting a finger except to deposit a lease payment. I deal with no tenants or non- occupancy. I never answer phone to fix problems.

In addition, with 25% down and a 30 year loan @ 4.5% I am getting a fixed 20% ROI, cash on cash return. On one property held by my Solo 401k I am getting cash flow and any future appreciation of the property 100% tax free forever.

How does that compare to your 6% deal?

User Stats

2,753
Posts
764
Votes
Jeff S.
  • Specialist
  • Portland, OR
764
Votes |
2,753
Posts
Jeff S.
  • Specialist
  • Portland, OR
Replied Jan 21 2022, 12:49

Sounds good @Todd Goedeke tell us more. Have been getting letters about a rental and my home from Vacasa. 

I hear about people grossing huge with STR. Have a Portland duplex which I may eventually exchange into STR when my handyman wants to relocate and take on a project at the coast.

User Stats

435
Posts
297
Votes
Sean Tagge
  • Investor
  • Memphis, TN
297
Votes |
435
Posts
Sean Tagge
  • Investor
  • Memphis, TN
Replied Jan 25 2022, 13:39

I bought a house for $1. a tree fell on it and the owner took an insurance claim walked away with some good money and we bought the house for $1.00

User Stats

859
Posts
927
Votes
Owen Dashner
  • Flipper/Rehabber
  • Omaha, NE
927
Votes |
859
Posts
Owen Dashner
  • Flipper/Rehabber
  • Omaha, NE
Replied Jan 26 2022, 07:17

@Chastity Cortijo what?!?

Where was this, Chernobyl?? Teach me your ways!