What is the Cheapest Real Estate You've Ever Purchased?

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Wendell De Guzman
Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
12y

Your markets are all expensive (LOL).

I bought a house for $1 in the Southside Chicago. It was a 4 bedroom house up for demolition. It was so bad the bank actually deeded the house back to the borrower after they foreclosed on it.

Sold it for $3,000 and I gave $2,500 to the seller because he needed to pay the water bill on it so he can get the deed to the new owner (because the city will not allow him to deed the house to a new owner unless he pays off the water bill). He was broke and he just joined our Acquisition Team so I decided to help him.

So technically, I bought it for $2,500...I guess. And yes...I only made $500 but I was able to help someone in the process and he is now an earning and loyal member of my real estate team. In fact, our closing 2 weeks ago that netted us $20,290.60 came from him.

Here's the picture of the property.

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  • James Wise
    Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 31k+ posts · 20k+ votes
    12y

    SFR in Cleveland Ohio

    3 bed, 1 bath

    Purchase price 15k

    Ended up "all in" about 24k.

    Rented out for $750

    Was a Joint venture with another BP member!

    3Reply
  • Chass Reed
    Flipper/Rehabber · Eastpointe, MI · Member since 2013 · 18 posts · 12 votes
    12y

    $500 in Detroit....no jokes please.

    In the process of rehabbing now.

    7Reply
  • Karen M.
    Castle Rock, CO · Member since 2014 · 4 posts · 5 votes
    12y

    SFR in Denver, CO in 2008. 3/1/garage. 30K purchase (AVR 130K), $4900 repair, $955 rent. We used a HELOC, so only $500 out of pocket. Now rents at $1200. I wish we could Find 10 more like that!

    5Reply
  • Kimberly T.
    Investor · Colorado Springs CO · Member since 2014 · 535 posts · 253 votes
    12y

    Brandon, I think you should qualify your question with a time period. My parents bought homes in SoCal for twenty-something thousand dollars, but that was back in the 1970s. Inflation is significant.

    The cheapest property my husband and I have bought is a $167,000 fourplex in Scottsdale AZ in 2011. GRM of 5.8.

    The only SFR we've bought is the house we live in, and there's no such thing as "cheap" in Orange County CA.

    3Reply
  • Dan S.
    Real Estate Investor · Springfield, MO · Member since 2012 · 20 posts · 5 votes
    12y

    $3,000 for a 2/1/1 in Springfield, Mo.

    In the process of clean up, I listed it and sold it for $11,500 before we got to any rehab at all. The foundation was obviously leaning & a landlord bought it like that, rented it out without much repair (bad !!) and the foundation is still like that today.

    2Reply
  • Priscilla Z.
    Rental Property Investor · Palm Bay, FL · Member since 2009 · 511 posts · 290 votes
    12y

    So excited to answer this question! LOL

    Rockledge FL - purchase for $8,000. Rehab of $20,000. Cash flowing at $750 per month.

    Palm Bay FL - purchase of $7,000. Rehab of $13,000. Lived there rent free for 2 years; now it's cash flowing at $300 per month, will be adding another roommate so it will be cash flowing at $650 per month in June. :)

    5Reply
  • Michael Jobe
    Real Estate Broker · Triangle Area, NC · Member since 2012 · 587 posts · 214 votes
    12y

    A former partner of mine bought a livable, albeit outdated, 3 bed 1 bath 1,100 sq ft house in our hometown of Huntington, West Virginia for $4000. This was back in 2010. An investor whom I used to shadow in the same town consistently purchased livable houses for $10-15k.

    3Reply
  • Account Closed
    Investor · Philadelphia, PA · Member since 2013 · 20 posts · 9 votes
    12y

    25K shortsale in philadelphia. 3 bedrooom SFR, will probably rent for around 750-770. total cost of repairs i estimate at under 1,000 (still evicting the last tenant). last purchase price was 37,500 in 2005 and i'm expecting to refi out over 100% of what i put back in.

    2Reply
  • Christian CarsonPro Member
    Cleveland, OH · Member since 2011 · 400 posts · 223 votes
    12y

    My first property was a 3/1 bungalow for $13,500. The second was a $13,000 bungalow three streets over. We sold the first for $56k and the second for $86k. Both were in my favorite inner-ring suburb of Cleveland.

    It helps to do business in a city that requires you to post funds in escrow for repairs -- it raises the barriers to entry and keeps the "fixer-upper guy" out of the running.

    3Reply
  • David Lee
    Wholesaler · Lenoir, NC · Member since 2013 · 297 posts · 127 votes
    12y

    just closed on one 3 weeks ago for $14,700. I put some click together floor I had left over and I rent it out for $700. I closed on Tuesday and tenants were moving in on Saturday.

    5Reply
  • Drew Denham
    Grand Rapids, MI · Member since 2014 · 174 posts · 27 votes
    12y
    Bought a 1700 SFH in bay city Michigan - $10,000 in 2012 Arv 90k Area is a B/B-
    2Reply
  • Aly W.
    Investor · Middletown, NJ · Member since 2008 · 2k+ posts · 1k+ votes
    12y

    A 2/2 condo in FL in 2010 for $42K. Put in about $1200 and rented it for $925 for several years. Sold it 3 years later for $80K.

    We bought another one in the same complex, slightly larger, for $45K in 2011. Put in about $1200 again to clean it up, and it's been rented to the same tenants for $950.

    3Reply
  • Richard Turner
    Charlestown, IN · Member since 2013 · 4 posts · 4 votes
    12y
    12,500 in Kentucky. Rehab cost 7k and rents for $650
    3Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y

    Tough question for me. I get into lots of property cheaply, but that's not the same thing as the cheapest thing I ever bought. I once bought a residential vacant lot. Paid the seller $2K. Paid back taxes and closing costs and was all in at $6K. Sold for $55K a month later.

    Bought an adorable 2/1 cabin style house with stone fireplace, large landscaped lot in rent-ready condition for $35K last year. In Santa Barbara County! But sold it a few months later. Have bought lots of small town desert houses in CA for under $20K.

    Don't let anyone tell you CA doesn't have cheap properties. :)

    4Reply
  • Michael Seeker
    Investor · Louisville, KY · Member since 2011 · 1k+ posts · 1k+ votes
    12y

    $54K in Louisville, KY. ARV/Sale price was $200K

    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y
    Originally posted by @Brandon Turner:
    What is the cheapest piece of real estate you’ve ever purchase?

    Great post.

    I am proud to say that I have bought "Australia's Cheapest House".

    Well it was quoted "Australia Cheapest House" by the media hehe

    Purchased for $15,000 and sold for $74,500 after $10,000 rehab.

    Thanks for reading.

    Podcast Guest on Show #89
    Oz Realty4.5356 Reviews
    WebsiteView Page
    5Reply
  • Wendell De Guzman
    Investor · Chicago, IL · Member since 2013 · 2k+ posts · 1k+ votes
    12y

    Your markets are all expensive (LOL).

    I bought a house for $1 in the Southside Chicago. It was a 4 bedroom house up for demolition. It was so bad the bank actually deeded the house back to the borrower after they foreclosed on it.

    Sold it for $3,000 and I gave $2,500 to the seller because he needed to pay the water bill on it so he can get the deed to the new owner (because the city will not allow him to deed the house to a new owner unless he pays off the water bill). He was broke and he just joined our Acquisition Team so I decided to help him.

    So technically, I bought it for $2,500...I guess. And yes...I only made $500 but I was able to help someone in the process and he is now an earning and loyal member of my real estate team. In fact, our closing 2 weeks ago that netted us $20,290.60 came from him.

    Here's the picture of the property.

    9Reply
  • Ronnie Edge
    Real Estate Agent · Phoenix, AZ · Member since 2014 · 30 posts · 8 votes
    12y

    These are awesome and inspiring posts. Though I have yet to purchase an investment property (newbie) I've seen my fair share of bargain prices bavk home in Michigan. If I'm not mistaken, they currently have a revitalization prgram where you can buy distressed properties in prime areas of Detroit (Boston Edison, East English Village, ect) for very cheap, but there are stipulations about rehabbing and keeping the property for a ce

    0Reply
  • Brie SchmidtBusiness Member
    Moderator
    Real Estate Broker · Chicago, IL · Member since 2013 · 6k+ posts · 5k+ votes
    12y

    $229k in Chicago an updated 3 flat

    Podcast Guest on Show #132
    Second City Real Estate4.821 Reviews
    WebsiteView Page
    1Reply
  • Stephen S.
    Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes
    12y

    In the 1970's I bought liveable houses in Pitman NJ for $1000. or less. I think the cheapest one was $700. or $725. And I bought several in the middle teens. For $2000. you could buy a pretty nice one. <g>

    In those days the rent was in the $200. range. The last one I sold about 10 or 12 years ago. I think I paid $2000. for it in 1976 or 1977 and sold it for about $75,000. after having rented it for the 20+ years. Very low maintenance costs. The last tenants were paying $725.

    But that's really not a fair question without at least a decade stipulation. I bought those houses before some of the people here were even born. <g>

    stephen

    -------------

    5Reply
  • Bryan L.
    Residential Real Estate Agent · Cookeville, TN · Member since 2013 · 1k+ posts · 948 votes
    12y

    $7000 for an REO. Did a wholesale flip to a buddy of mine for $11,000. He rehabbed it, and was all-in for 30 or less. He then did a retail sell to an o-o for 45 if I remember correctly.

    1Reply
  • Jason Dillard
    Real Estate Broker · Greer, SC · Member since 2013 · 548 posts · 271 votes
    12y
    $500. Prorated taxes were $800. So seller brought cash to sell it. Double closed it for 7500 same day.
    1Reply
  • Ibrahim Hughes
    Real Estate Consultant · Bloomfield, NJ · Member since 2010 · 2k+ posts · 1k+ votes
    12y

    purchased a house for $19K using a cash advance on my credit card. Put another $45k into it and sold it for $120 K. This was in 2002.

    4Reply
  • Chris Winterhalter
    Investor · Chicago, IL · Member since 2009 · 566 posts · 274 votes
    12y

    @Brandon Turner

    When we first started out we were buying and selling a lot of single families...I came across an old old lead through PropertyLeadsNow (which is now Zbuyer.com). I contacted that lead for over a year with continued follow up. The house was in St. Louis and was inherited by a daughter that lived in CA. She couldn't keep up with the back taxes and was three years behind with St. Louis County. I told her I would give her $200-300 and pay the back taxes. She finally went for it....so I ended up paying around 3k with closing costs and back taxes. It was a tiny little brick house around 800 sq/ft with an unfinished basement. We had to put around 17-18k into the property which mainly consisted of adding a bedroom (it was a 1/1), all new HVAC, plumbing, electrical panel, and cosmetic upgrades. We rented it for $565 and have had good success with it minus a few issues here and there.

    1Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    12y
    Originally posted by @Ronnie Edge:
    These are awesome and inspiring posts. Though I have yet to purchase an investment property (newbie) I've seen my fair share of bargain prices bavk home in Michigan. If I'm not mistaken, they currently have a revitalization prgram where you can buy distressed properties in prime areas of Detroit (Boston Edison, East English Village, ect) for very cheap, but there are stipulations about rehabbing and keeping the property for a ce

    That program has gotten so much PR all over the real estate world. It's for a total of 240 families, and you have to attend a mandatory orientation event even if you don't get to buy the property. Maybe there will be other programs to follow, but that one's most definitely for the locals!

    0Reply
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