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?

24 Reply

748 views

Most Popular Reply

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.

13 Reply

See this reply in the discussion

111 Replies

Jump to latestLatest

Sort by

Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
4y
@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.
0 Reply
Jeff S.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
4y
@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.

0 Reply
Todd Goedeke
Contractor · Sheboygan, WI · Member since 2016 · 921 posts · 266 votes
4y
@ 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?
0 Reply
Jeff S.
Specialist · Portland, OR · Member since 2010 · 3k+ posts · 1k+ votes
4y
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.
0 Reply
Sean Tagge
Investor · Lehi, UT · Member since 2015 · 435 posts · 300 votes
4y
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
1 Reply
Owen DashnerPro Member
OP
Lender · Omaha, NE · Member since 2008 · 1k+ posts · 1k+ votes
4y
@Chastity Cortijo what?!?
Where was this, Chernobyl?? Teach me your ways!
0 Reply
Anjahlia Dooley
Specialist · Atlanta, GA · Member since 2020 · 8 posts · 10 votes
3y
Wow! I'm amazed at some of these deals! My cheapest so far is 19k in Columbus, GA.
2 Reply
Melanie ThomasBusiness Member
Real Estate Broker · San Antonio · Member since 2022 · 1k+ posts · 491 votes
3y
Holy smokes! some of these answers are very interesting. Happy Investing!
[email protected]
RentWerx Property Management4.73215 Reviews
Website View Page
1 Reply
Ed W.
Investor / Landlord · Columbus, OH · Member since 2015 · 276 posts · 174 votes
3y
Near Grove City, OH, a seller gave me $500 to take her property. On Fifth Ave, in Columbus, OH - I honestly don't quite recall but I either bought it for $200 and sold it for $500 or bought it for $500 and sold it for $800.
1 Reply
Eliott Elias
Investor · Austin, TX · Member since 2021 · 9k+ posts · 5k+ votes
3y
18k
0 Reply
David Krulac
Mechanicsburg, PA · Member since 2013 · 3k+ posts · 2k+ votes
3y
Besides the $50 house which was all brick, and had new electric service and a new roof, referrenced earlier. But the house needed everything else and I sold as-is for $1,000.
I also bought another house for $1,800. AFTER I bought it a driver ran his car into the house, literally, the car was inside the first floor of the house. It happened on a Friday night at 2AM and might have involved other substances. I didn't find out about the accident for 2 weeks. There was structural damage not only to the hit zone but also on 2 other sides of the house, which was made of concrete block. After getting the police report, I filed a claim with the driver's auto insurance and got a claim paid for $20,000. I had an appraisal done and the property was appraised at $44,000 and I donated the house as is to a college and got a tax deduction of $24,000.
1 Reply

Join the conversationCreate a free account to reply, vote on answers and follow this thread.