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

99 Replies

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!

$300 for an REO in Flint, MI in 2010. I even collected a $1000 commission on the deal.

I then sold it on a land contract with $1000 down for $5000 at 11% interest to another investor within a week of taking title.

Originally posted by @Mark Yuschak :
$300 for an REO in Flint, MI in 2010. I even collected a $1000 commission on the deal.

I then sold it on a land contract with $1000 down for $5000 at 11% interest to another investor within a week of taking title.

Mark: how long a term do you offer on something like that? 1 year? 3 years? The payments seem so itty bitty, even with 11% interest.

I did the contract for 12 months. It definitely wasn't as clean as just flipping it for a quick profit, but I still wasn't too good for the deal!

Originally posted by @Mark Yuschak :
I did the contract for 12 months. It definitely wasn't as clean as just flipping it for a quick profit, but I still wasn't too good for the deal!

Thanks for the additional info. 12 months is a-ok in my book for small notes. I bought a $5K lot last year and resold it a few weeks later for $12K, 1K down, 12 months at 8%. Not as clean as a cash sale, but still profitable. I like those monthly $1K checks. Only one more payment to go on that one. Must create more!

I am pretty sure I can beat everyone on this one. :)

The cheapest house I have ever bought was for $50.00 put 12k in it and rented it for 750.00 a month of course own it free and clear.

About 2 months ago I bought 62 houses for for 45k. I put about 15k in each of them and rent them out for about $750 a month. I will try to put some pics up if you guys want to see some of them. Its crazy cause a lot of them are really good houses.

Andrew

We have had a $1.00 deal and a $1,000 deal. For the $1000 deal I actually got a $1500 commission so basically they paid us $500 to take the house. House was in demo court and took me another $45,000 to stabilize but still feels good to know they paid me for it.

Awesome thread.

There are a few ways to answer this, so I'll take the opportunity to take them all. :)

Cheapest contract price I have had was $2,000 at a tax sale auction. With all the various fees they tack on it was just a little under $2,500. However I didn't see inside before since it was inhabited. Once we got the Oxygen thieves that were living there out it needed major rehab. Just finishing that this week. Should still be all in for a bit under $20K and hope to get $500 for rent, no less than $450 though.

Cheapest purchase would be a place I had a contract with a wholesaler for $2,500. Paid the $1,500 fee outside of closing. While doing the title work there was an issue and the seller agreed to give a $1,500 credit for me to fix it after the fact. So even after closing costs at the actual closing I got a check for like $72.00. Obviously I did still pay for the place with the fee, but pretty cool to get money back at a purchase. :)

This one also needed major rehab, about $24K. That actually just finished recently and it is on the market to rent for $695.

Cheapest place I have gotten "All In" was a little over $19K. Purchase price of $17,425 and put roughly a grand into it off the bat. Had it rented a couple weeks later for $575.

Cheapest in terms of money and time/effort was one I just did last week. Purchase price of $19,200 with no work so still a hair under $20K with all the closing costs. Tenant occupied with someone my current PM had placed for the previous owners (So not worried about the screening criteria used). They signed a new lease the day before closing for $500. So bought the place and collect money.

BTW this and the previous one were just right off the MLS stuff. Just found people that decided the all cash with a quick close was worth a discount.

These are all in my out of state cash flow markets.

Not nearly as impressive locally.

Cheapest house I ever bought around here was $32,500. That place needed almost $90K in work. I did sell it for $177K.

Next cheapest was $34,535. That one needed about $41.5K of work. Resold it for $123K.

My cheapest all in deal was about $48K. Bought a place for $42K and change and put about $6K into it. Could probably have flipped it for an okay profit but decided to keep it. Rented it for $1,050 at the time and currently have it $1,100 having it for about 2 years. I'm the only person I know that has actually gotten a "2%" property here.

These last few examples are why I have been looking for rentals out of state. :)

My first and only investment (but definitely not the last)... I purchased, or I should say "am purchasing" Im currently paying for it via land contract:

3 unit brick with laundry room in full basement and attic. Purchase price - $12k, $5k down, $376/month, Gary, IN close to Indiana State University

Kristine Marie Poe

Aw the land game.. My dad started in this bizz in CA in 1962,,, as a family RE bizz we bought thousands of these lots over the years at tax sales and other venues.. then sold them for 50 down 50 a month.. 8 to 18% interest.

Same scenario you see with Texas 20 acre parcels for 2k down 40k and in Montana you could buy 20S the same way before the movie stars found Montana...

My pop bought thousands of these over the years. it was not uncommon to buy lots for less than 50 bucks at the tax sales. the 50 down payment we had all our money back.. then we would sell the paper to note buyers in Beverly hills.. for 50% discounts.. When he bought those lots for those low prices he sold them for 990.00 to 4990.00 those were the first sales I ever made as an agent in 1975.

There was a Chinese firm in Redwood city I am sure you know of them they hammered San berdo and Riverside county Lancaster area for these type of deals.

then you have Ft. Meyers fla and Lehigh acres and coral gables between the two of those there was almost 1 million lots created in the 50's and they have been sold cheapie over the years.

Oh the good ole days... Tax sale and or distressed land sale is huge bizz in CA because there is millions of these unbuildable lots.. And or some are buildable but a lot of them are not.

Originally posted by @Jay Hinrichs :
@K. Marie Poe

The build-able lot I posted about was in the city and was developed with a large SFH after I sold it. Or actually, after my buyer resold it to the buyers I didn't sell to in the bidding war. I only played the Coral Gables type land game once, in California City. And broke even.

$9.5K

Purchased recently in one of our bulk purchases.

Property is located in Ohio. We purchased it based on an initial BPO of $21K. After we purchased it, a new BPO was ordered, and that came back at $10K, so we fully expected to lose some money on it.

Listed it for $20K anyways, and got 5 offers, with highest at $17K. so it looks like it'll work out OK.

The cheapest property was bought at the courthouse steps for $117k. It was a 2/1 condo. Spent $15k in renovation. Have been renting it to an AAPL Engineer for $1,600/month for over 2 years and still counting. It's Silicon Valley price so it's a little inflated.

Originally posted by @Account Closed :
The cheapest property was bought at the courthouse steps for $117k. It was a 2/1 condo. Spent $15k in renovation. Have been renting it to an AAPL Engineer for $1,600/month for over 2 years and still counting. It's Silicon Valley price so it's a little inflated.

People in Manhattan and DC and Silicon Valley have to live somewhere too. That condo is a great CA deal. Assuming the HOA fee isn't $500. :)

Originally posted by Kristine Marie Poe:
Originally posted by @Minh L.:
The cheapest property was bought at the courthouse steps for $117k. It was a 2/1 condo. Spent $15k in renovation. Have been renting it to an AAPL Engineer for $1,600/month for over 2 years and still counting. It's Silicon Valley price so it's a little inflated.

People in Manhattan and DC and Silicon Valley have to live somewhere too. That condo is a great CA deal. Assuming the HOA fee isn't $500. :)

The HOA on this one is only $155/month. It's a small complex. I'm paying between $300-$325 for my other condos and between $240 - $260 for my townhouses.

I have seen HOA between $450 a $600 in some other complexes. In 55+ community, I have seen HOA between $800 - $1,100/month. So $500/month is not out of the ordinary here.

My cheapest property was a vacant lot in CA that I bought at the courthouse steps for $5,260. I planned to build a spec house on it, but two years later when I finally got around to it, I scrapped the plan and sold the lot for $77K. That was 2004...had I gone forward with the construction I might have been on the other side of the bubble and lost big.

As for actual houses, I count 146 houses that I've bought between $30K and $100K, most of which I flipped between $52K and $235K. I wish I could say that it was the $50K house that sold for $235K, because that would be really fun to say, but that wasn't the case.

I still prefer the higher priced stuff, though. If I have the same percentage margin on a cheap house vs an expensive one, I make more dollars with the same effort (usually!) on the expensive one.

Originally posted by @Shara Carlton :
My first and only investment (but definitely not the last)... I purchased, or I should say "am purchasing" Im currently paying for it via land contract:

3 unit brick with laundry room in full basement and attic. Purchase price - $12k, $5k down, $376/month, Gary, IN close to Indiana State University

I don't do many deals in Gary, but good to see other investors in the area. Good luck with the deal.

Bought a 5/1 for $7,600 in Milwaukee last week. Hoping to resell it next week after all the paperwork clears.

FYI, the Realtor that did the BPO says rent on the Milwaukee house should be between 800-900.