Brooklyn, NY · Member since 2014 · 174 posts · 23 votes
I cant find a single property that I would be able to buy in a half decent neighborhood utilizing the 2% rule. I looked in almost all of florida. Maybe a trailer park home, but then again, the land rental fee or whatever will kill any positive cash flow...
Wholesaler · Holiday, FL · Member since 2013 · 571 posts · 221 votes
11y
There is only one answer - clearly you are paying. or looking to pay, too much.
That being said; except under extraordinarily perfect conditions I find it virtually impossible to do 2% in New York, New Jersey, or Conn. - primarily because of the tax burden. In AZ, FL, and TX I find it fairly easy to do better than 2%.
I looked at a small 3/1/0 townhouse (twin) in a decent area NJ area yesterday. It's kind of a beater but could be nice with a real rehab. But the property taxes are $4100. a year. In case you don't have a calculator that is $342. out of the rent every month. Rents in that area trend in the $1100. range. 30% of the gross for taxes? Pa-leeeeze!
I have heard that even if you lose money on every deal - there is always the chance of making it up with sufficient volume. But I have always shied away from trying it. <g>
I cant find a single property that I would be able to buy in a half decent neighborhood utilizing the 2% rule. I looked in almost all of florida. Maybe a trailer park home, but then again, the land rental fee or whatever will kill any positive cash flow...
So I will make an interesting point @Martin S you found a house that was a good value while you were griping that there were no deals out there. The house you were watching just resold for 3 1/2 times the price you watched it sell for five months ago.
Someone just made $60,000-$70,000 on one flip while you were wringing your hands in despair.
San Diego, CA · Member since 2014 · 49 posts · 13 votes
11y
I just bought a tax deed property for $48000 and will probably end up putting in $20000 to fix up. I should be able to get $1000 in rent. That's about 1.5%. It's the highest that I've achieved. My others are around 1 and a few in 1.2 range from those purchased during 2009-2010, the good years. These are all in So Cal.
They do exist. But you won't find many on MLS. Or if you do, they will disappear FAST.