What's the cheapest house you have ever bought?

Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes

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?

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Ted KaaschPro Member

Real Estate Agent · Omaha, NE · Member since 2017 · 112 posts · 62 votes

My cheapest home was 12k. Renovated for around 80k. Appraised around 150k.

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Derrick E.
Investor · The Creek, WV · Member since 2014 · 890 posts · 1k+ votes
4y
Originally posted by @Owen Dashner:
Originally posted by @Derrick E.:
$7k for a 2BR home that was tenant occupied with a Sec 8 tenant who had two months left on lease. They moved out. I put another $3,500 in to fixing it up nicer and increased the rent. Collected rent for 3 years and then sold it for a nice profit.

Wow, that's crazy! Is the house in your back yard, or out of your area? Great numbers!

In my back yard. Owner only listed in on Craigslist which most people don't use, but he was older. Couldn't text his phone as it was a landline and didn't have address listed. He was asking $25k for it. I called and got address. Looked it up on county tax site and noticed he paid $7k for it back around 1990. He said it was his last rental in the area and he was selling to retire and was only keeping the rentals that were closer to him. He lived around 30-45 minutes from the house.
I offered him $7k cash with a quick close and I would just take over the tenant and deal with all of that and he could keep the security deposit, I would handle all of it on my end.
He accepted as I'm pretty sure I was the only person to make an offer or even contact him lol.
2 Reply
John Teachout
Rental Property Investor · Concord, GA · Member since 2015 · 3k+ posts · 3k+ votes
4y
$6,500.00 for a ca 1900 mill house. It sat vacant for several years while we were attending to other projects and when we finally dug in we discovered it was in much worse condition than we thought. We put about $20k into it (materials only) and spent nearly 3 years rehabbing it. It turned out nice but only rents for $480.00 (1 bed 1 bath) so we'll need to hold it for about 70 years to make it work.
0 Reply
Carl Dieckmann
Real Estate Broker · Northwest AUSTIN TX · Member since 2019 · 56 posts · 27 votes
4y
Hey guys, (I'm prepared to be called a liar on this one) but I no kidding found some lots here in TX that were available from the county for free...no joke (you had to pay a $30 title transfer fee). In fact, one was in a neighborhood where a lot two over was listed for 15k. This was all pre-Covid, where prices weren't crazy yet. I didn't move forward with any because at the time they likely wouldn't have sold, and I would have needed to pay taxes on them down the road. In hindsight, I wish I had gotten one just so I could say I got "free real estate".
0 Reply
Michelle Foy
Real Estate Agent · Oklahoma City · Member since 2021 · 12 posts · 8 votes
4y
$13,426...put about 16k in and rented it for $450/mo. it was largely problematic though. I have also bought three for $33,500, $37,500, and $35,000, put a total of around 70k in circa 2015. I am doing an 80% cash-out re-fil right now and using the 215k in equity to buy more. Pretty good return in 6.5 years. Deals aren't as prevalent now but they are always there if you use your imagination!
0 Reply
Tony Gunter
Investor · Canton, GA · Member since 2014 · 728 posts · 501 votes
4y
Purchase = $6,500
All in = $75k
Appraised at cash out $105K
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Jim Bryant
Member since 2018 · 65 posts · 31 votes
4y
19,000
It was a silent auction for a bank foreclosure in the Illinois Valley. The house needed some work, especially plumbing.

Not a bad little place though. It has been rented to the same family for 6 years now.
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David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
4y
I bought a 8 room brick house for $50. I wrote about this house in the Bigger Pockets Book "Real Estate Rewind" (there were 11 co-authors and the book is FREE here at BP and no other place!)
David Krulac
Bigger Pocket Podcast #82
2 Reply
Ted KaaschPro Member
Real Estate Agent · Omaha, NE · Member since 2017 · 112 posts · 62 votes
4y
@Ricardo Ramirez I found the house through a post on FB group. Attached is the assessor form since you are calling me out.
1 Reply
Owen DashnerPro Member
OP
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
4y
Originally posted by @David Krulac:
I bought a 8 room brick house for $50. I wrote about this house in the Bigger Pockets Book "Real Estate Rewind" (there were 11 co-authors and the book is FREE here at BP and no other place!)
David Krulac
Bigger Pocket Podcast #82

OMG - you just won the Internet! A $50 house purchase??? Mic drop.

0 Reply
David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
4y
@Owen Dashner also the house had a brand new roof, and brand new electric service. To read the "rest of the story", you have to read the BP Book.
0 Reply
Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
4y
@Jeff S. how did you manage to own a property for over 30 years without doing any maintenance?
We’re you aware that the math of your statement about benefits of long term math produces a compounded return of 10%.
0 Reply
Tanner Sherman
Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
4y
Originally posted by @Owen Dashner:
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?

The appliances cost more than the house! Nice find Owen!
0 Reply
Tanner Sherman
Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
4y
Originally posted by @Jay Hinrichs:
Originally posted by @Ted Kaasch:
My cheapest home was 12k. Renovated for around 80k. Appraised around 150k.

question it appraises for that but what would it sell for.. a lot of what I have funded over the years in the mid west apprasial and actual sales prices were very very different.
those are monster spreads if you can actually sell for that.. many of us who build.. will make 50k on a 400k build job and think we hit a home run..

What are your thoughts on market manipulation from appraisers?

0 Reply
Tanner Sherman
Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
4y
Originally posted by @Zambricki Li:
26k in Conway SC- bank owned. I've got it listed now for 100k on MLS, fingers crossed

How long did you own it for?
0 Reply
Tanner Sherman
Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
4y
Originally posted by @Sam Ohanesian:
130k in Tucson, AZ in 2020. Worth around 240k now.

What's your plan- Refi, Heloc, or sell?

0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
4y
Originally posted by @Tanner Sherman:
Originally posted by @Jay Hinrichs:
Originally posted by @Ted Kaasch:
My cheapest home was 12k. Renovated for around 80k. Appraised around 150k.

question it appraises for that but what would it sell for.. a lot of what I have funded over the years in the mid west apprasial and actual sales prices were very very different.
those are monster spreads if you can actually sell for that.. many of us who build.. will make 50k on a 400k build job and think we hit a home run..

What are your thoughts on market manipulation from appraisers?

dont really have one.. you get good appraisals if you high value and you get bad appraisals if you want high value and it does not come in.
as a lender you want conservative appraisals which is usually the opposite of investors.

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Tanner Sherman
Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
4y
Originally posted by @Ricardo Ramirez:
@Ted Kaasch that's totally BS. No offense but how?!?!

I think putting "no offense" after blatantly calling someone a liar is pretty much irrelevant. Maybe try something along the lines of "that's unbelievable, how ever did you do it!?" would come off a lot less confrontational.
0 Reply
Tanner Sherman
Real Estate Broker · Omaha, NE · Member since 2020 · 329 posts · 203 votes
4y
Originally posted by @Kammy H.:
$2500.00 Subject To deal that I purchased in my Solo 401k and rented for 4 years. Waited until the Market changed last year and sold it and made a $105k profit in my Solo 401k.

That is incredible! Congratulations, I think we need to come up with a word stronger than grand slam for this one.
0 Reply
Jeff S.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
4y
@Todd Goedeke of course I had maintenance and repairs. My rent was more than twice the expenses and capital improvements. In fact the overall expense including everything except interest was about 47%, close to the 50% rule. So when you calculate return don't forget the rent. Plus the fact $1200 down turned into a very large return.
0 Reply
Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
4y
@Jeff S. not your fault post did not mention to include repairs,maintenance and renovations if you want to compare purchase price to today s value.
If your current value is $450k , gross rent of $1500/mo. is a poor investment. That’s only a 4% return before expenses.
0 Reply
Jeff S.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
4y
@Todd Goedeke the actual would be $18000 rent less 50% for expenses and cap x is 2% plus 7.2% appreciation in Portland last year. Rent is below market to keep renters in place so to have mailbox money no turnover. My choice could get more same rent and tenant 7 years. This is my contribution to low cost housing and I get a small token for my goodwill. This is eastside Portland. Westside rents are $2400 up to market, manager pushing limits.
Westside recent purchase price $450k rent at $2400 month 50% rule gives 3.2% plus appreciation. New construction (1 year old) value up 50 to 80k. That is about 50k in June to January.
Like a stock with a 3.2% dividend I will take it all day long. And like stocks some are better than others.
0 Reply
Kyle Godbout
Investor · Omaha, NE · Member since 2015 · 366 posts · 184 votes
4y
@Owen Dashner
I bought two neighboring homes for $92k (41k and 51k)
The basements of both were black with mold and you could hardly breath in the houses. Money sort of smells like mold, right?
0 Reply
Lamar Lee
Developer · Detroit, MI · Member since 2020 · 24 posts · 44 votes
4y
@Owen Dashner
I’ve bought multiple $500 houses in Detroit.
0 Reply
David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
4y
My 10 year old kid bought a house for $200, a brick house in "livable" condition. My wife said it wasn't in livable condition because "She" wouldn't live in it. I said that it was livable because people were living there. The people who lived there won the lottery, not millions, but enough that they walked away from the house and didn't care about the equity lost. The kid hired some people to de-trash the house then sold it to a flipper for $4,500.
David Krulac
Bigger Pockets Podcast #82
0 Reply
David NilesBusiness Member
Property Manager · DeLand FL · Member since 2012 · 860 posts · 243 votes
4y
$1,000 in Buffalo NY. Initially walked away from it when wholesaler showed it to me asking $10,000. Had tons of water damage from frozen / broken pipes. She called me back about a month later and I bought it for the grand. Spent about a year doing on and off repairs, basically sending my guys in when we were slow or short days. It was in the hood so taxes were pretty much nothing, even for NY. Rented it out for a year after at $700 month and eventually sold for $39,000. All in I probably had about $10,000.
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