$50k duplex out of state- Where??

Irvine, CA · Member since 2017 · 9 posts · 1 vote

Hi BP-

I want to find a duplex for 50k-60k that can rent out each unit for at least $600 a month. What cities/areas should I be focused on?

Thanks!

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Jay HinrichsBusiness Member

Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes

@Katie Haney careful that price range and tenant range is for experts in the local market generally.. out of state folks stand a very good chance of having some pretty rough financial times ..

take your 50k and buy something for 150k you will thank your self over time.

there is a reason a duplex would sell that low in todays market.. the market is pricing for risk.. when you live out of market your risk already goes up... there are plenty of better buys out there .. than a duplex at 50k.. I know it sounds great on paper.. and it may work and if this is only 5% of your available cash you can take the risk.. but if this is the majority of your investing cash I say risk is simply too great ... .listen to @Curt Davis sage advice he has been around the block for many years and is not trying to sell U something like all the rest of the folks posting on this thread.

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Brian Ploszay
Investor · Chicago, IL · Member since 2009 · 1k+ posts · 1k+ votes
9y
I'd be careful doing that investment for several reasons. A 50K duplex will most certainly be in a lower income area. That's okay, but it brings complications for an out of state investor. (Renters don't always pay their rent for these properties).
Also, a 50K property often comes with deferred maintenance issues. Even if the roof is not leaking, it might 5 years from now. That will destroy your cash flow you made.
I know California is expensive, but you can take the 50K and use it as a downpayment for a local propoerty. Or at least one that is within a reasonable drive from Irvine California. If you buy a property in the midwest or south, you will have to completely rely on local contractors and management. This could cost you...
1 Reply
Dylan VargasPro Member
Rental Property Investor · Chico, CA · Member since 2016 · 625 posts · 336 votes
9y
@Katie Haney Welcome! Cleveland, Indianapolis, Memphis, Cincinnati, Rochester/Buffalo etc. Look through the marketplace here and you will see many.
1 Reply
Robert Freeborn
Real Estate Agent · Bellingham, WA · Member since 2017 · 427 posts · 182 votes
9y
Talk to Shawn Ackerman about Milwaukee. Some great opportunities out there.
2 Reply
Federico Gutierrez
Realtor · Cleveland, OH · Member since 2015 · 2k+ posts · 857 votes
9y
Getting a little harder to find 50-60K duplexes in QUALITY C area's here in Cleveland these days. Found one yesterday for a client and ended up in multiple offers, secured it but had to go over asking.
0 Reply
John Caviness
Professional · Memphis, TN · Member since 2014 · 56 posts · 15 votes
9y
Memphis is a great market for cash flow properties and there are many great areas and many bad areas. We have a duplex in a "C" area near the University of Memphis that is getting $600 per side but is more than $50,000. If you are interested in Memphis we would be glad to discuss some options with you
2 Reply
Curt DavisBusiness Member
Flipper/Rehabber · Memphis, TN · Member since 2008 · 5k+ posts · 2k+ votes
9y
why would you want to buy a terrible property where you are going to have high probability of constant issues long term? This would not be a good investment. You will regret it.
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Michael Plante
Deland, FL · Member since 2017 · 2k+ posts · 1k+ votes
9y
Originally posted by @Dylan Vargas:

@Katie Haney Welcome! Cleveland, Indianapolis, Memphis, Cincinnati, Rochester/Buffalo etc. Look through the marketplace here and you will see many.
100% agree
In upstate NY it does NOT have to be a bad area to find what you are looking for
Was just at an auction and a former bank 3 stories in perfect condition sold for 35k
It really is a gold mine but I only am there in the summer and have even better things going on in FL for my money
But if that is what you are looking for take a couple days and drive between Buffalo, Syracuse and Rochester.
Having grown up there and buying my first duplex 30 years ago I thought 20 + point ROI was normal.
2 Reply
Brett Snodgrass
Investor · Indianapolis, IN · Member since 2014 · 2k+ posts · 601 votes
9y
@Katie Haney I am an investor from Indianapolis and have a couple duplex properties for sale in your price range. PM me if you would be interested in Indy after researching some areas. If you have questions or need help, don't hesitate to reach out. Thanks and God Bless!
2 Reply
Ed S.
Investor · Oskaloosa, IA · Member since 2014 · 126 posts · 65 votes
9y
In today's heated market, you might have 50,000 problems.
0 Reply
Jason Chen
Tampa, FL · Member since 2017 · 240 posts · 153 votes
9y
just LOL @ all the posts in this thread
in 2011-2015, i acquired a number of foreclosed duplexes for $45-$55,000 in decent shape, requiring only $10,000 or less in repairs each, and all in GREAT locations in a city of 60,000+ and growing. Literally every multifamily property or motel was a 20-25cap. The idea of an 8cap is super foreign to me, but this city is a very unique city in florida. Message me if you would like to know where it is.
If I were to show the pictures, people wouldnt be able to believe it
1 Reply
Mark Jones
Rental Property Investor · Indianapolis, IN · Member since 2017 · 104 posts · 47 votes
9y
@Jason Chen I think you nailed the sentiment of the other posters. 2011-2015 Duplex's in solid neighborhoods could be found in the $50k range, particularly in the midsize cities of the midwest. Now a $50k duplex is going to be either a complete gut (which doesn't appear to be what the OP is looking for) or in a rough area.
Where the OP may find this kind of deal is moving into a more rural area just outside of those midsize cities.
0 Reply
Timothy Murphy III
Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
9y
@Katie Haney
In the Cleveland, Ohio area you can find similar properties. You might be more in the $70-$80k range for a B caliber neighborhood duplex, but you should be getting at least $600/unit and probably closer to $800/unit.
1 Reply
Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Timothy Murphy III for the properties in the $70 - $80K range is there any appreciation upside? or are the values over time, from what you know about the market, stagnant?
2 Reply
Rob Gillespie
Specialist · Cleveland, OH · Member since 2011 · 1k+ posts · 852 votes
9y
@Katie Haney Very possible in Cleveland and surrounding areas. Depending on what type of area you are interested in buying. I have sold 2 doubles for 60k bringing in close to the same rents.
for years everyone says that Cleveland is just a cashflow market, but prices are going up fast due to the amount of out of town buyers flooding the area.
I highly recommend checking out the Cleveland market. I would be happy to give ya cliff notes on it or show ya around if you take a field trip!
Good luck on your journey!!
1 Reply
Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Robert Freeborn thanks for the kind word and recommendation. Milwaukee is definitely a cash flow play. The price to rent ratios are phenomenal and getting in a decent location at $50K is not uncommon.
2 Reply
Timothy Murphy III
Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
9y
@Shawn Ackerman
It's hard to say for certain, though I do think of the midwest cities as cash flow markets primarily with any appreciation being a bonus.
1 Reply
Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Timothy Murphy III Precisely! That's the way that I think of my market in Milwaukee. I don't even look for appreciation. I base my trigger pulling on cash flow strictly. I've had a few of my properties go up in value(nominally) over the last year. Then again I purchased them significantly below market so that I can delay fi and pull most of my $$ back out of the deals. Your also sitting in a solid cash flow market in Cleveland. Are the numbers making sense over there?
1 Reply
Katie Haney
OP
Irvine, CA · Member since 2017 · 9 posts · 1 vote
9y
@Timothy Murphy III
Are these properties picked up pretty quickly by all cash buyers or would I stand a chance going the financing route?
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Katie Haney careful that price range and tenant range is for experts in the local market generally.. out of state folks stand a very good chance of having some pretty rough financial times ..
take your 50k and buy something for 150k you will thank your self over time.
there is a reason a duplex would sell that low in todays market.. the market is pricing for risk.. when you live out of market your risk already goes up... there are plenty of better buys out there .. than a duplex at 50k.. I know it sounds great on paper.. and it may work and if this is only 5% of your available cash you can take the risk.. but if this is the majority of your investing cash I say risk is simply too great ... .listen to @Curt Davis sage advice he has been around the block for many years and is not trying to sell U something like all the rest of the folks posting on this thread.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
5 Reply
Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Jay Hinrichs all very good points if a new investor is going at it alone. However with guidance and the power of a machine built from start to finish any investor can successfully invest in any market in the country. I think back to when I started in the Milwaukee market and I was terrified but through a long process of team building we are now rocking and rolling.
Also just listened to PC #241 and I didn't know you were still going out for coffee these days LOL!! I don't have a private plane but can certainly make it down to your area on a commercial flight for coffee. All the best to you my friend.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Shawn Ackerman to fair your not a one off investor getting started your a real estate professional like I am completely different.. who did pod cast 241 ? and yes I am a wanna be airline pilot so I have to pay for my habit.
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Jay Hinrichs Good point there...I was simply implying that if @Katie Haney or any investor can work with a real estate professional her chances of success will increase exponentially. Similar to how working with Josh Randall, who did Ep. #241. In the BP episode he mentioned meeting you and how that interaction has grown both his REI Acumen and REI business simultaneously. I'm also interested in buying a plane. On the bucket list of things to do.
0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
9y
@Shawn Ackerman get a plane with a parachute.. !!!
Podcast Guest on Show #222
JLH Capital Partners51 Review
Website View Page
0 Reply
Timothy Murphy III
Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
9y
@Katie Haney
You can acquire with financing. I've got a client under contract right now for an occupied duplex in a B caliber suburb in that price range. She's using conventional financing to buy. Cash is obviously better because it's quicker and sometimes it can get you a little better price, but plenty of buyers in this market use conventional financing.
0 Reply
Timothy Murphy III
Real Estate Broker · Cleveland, OH · Member since 2012 · 771 posts · 252 votes
9y
@Shawn Ackerman
Yeah, it sounds like we have similar mentalities and approaches. I look for appreciation in value by buying at a discount, either through finding good deals or by forcing it through rehab and renovation. I don't pretend to be able to predict the future as to property values. And yes, the numbers are making sense here in the Cleveland market, even for the more stable neighborhoods.
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