Sub30k rental purchase... should i stay or should i go now?
Good morning everyone,
Looking for some opinions here. My wife and I currently own a 4 unit Multi-Family(20% down pmt), and are cash flowing about $750.00 per month, give or take a tad. We are excited and are ready to start preparing ourselves for purchase number two.
I have read dozens of posts (for/against) buying lower valued "pigs." There are dozens of properties that we could buy in our area from 30-50k. We live in the midwest, 20 minutes from St. Louis, Missouri, on the Illinois side of the river. These homes are in safe area(i have lived here all 33 years of my life), mainly class B and C. If I am cautious about the big ticket capex items(roof, heat/air), what is the harm in purchasing these types of property?
Just as an fyi-i googled(not the most accurate-just quick) the average home price in my area, compared to Lima, Ohio. Lima has an average listing price of $122,790.00. The median home price in my area is $71,500.00. Homes are just cheaper than a lot of other areas here where we live at(so are the salaries... #sadface). So we can get fairly nice properties at 30-50k here because that is just the way the market is. We could get between 600-750 in rent out of these properties. Obviously if i were to buy one, i would try and make a few updates...laminate flooring, new paint, new plumbing fixtures/toilets(all work i can do myself at a pretty cheap price). @Ben Leybovich...i would love to hear your opinion. i respect all that you have accomplished, and would like to hear your thoughts on this. I know you are against the cheap houses...but what if all houses are relatively cheap?
I would like to hear from other people as well...not just Ben. I just wanted to "askbenwhy." Thanks to all, and sorry for the long post. Have a great Labor Day Weekend!