$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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Mike D'ArrigoPro Member
Turn key provider · San Jose, CA · Member since 2010 · 4k+ posts · 3k+ votes
9y
@Katie Haney In most markets, a $50K duplex is going to be in the hood. Believe me, you don't want to own a MF property in a bad area.
2 Reply
Chris Martin
Investor · Willow Spring, NC · Member since 2009 · 5k+ posts · 3k+ votes
9y
$50K duplex is to real estate as a penny stock is to the stock market.
Yes, you can make money. Are the odds in your favor? No.
Just as a penny stock can be delisted and become unmarketable and virtually worthless, your $50K duplex can become unmarketable, uninsurable, in-underwritable and completely undesirable.
I have owned penny stocks and I have owned sub-$50K properties and made money on both. IMO if you absolutely positively have to play in sub$50K, buy a well-vetted 8+ unit (preferably 50+) multifamily property that is $50K per door and bring in professional property managers. Much better odds...
Good luck.
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Jay Hinrichs The plane will have two parachutes!!! LOL. gotta double up my friend.
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Shawn AckermanPro Member
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Timothy Murphy III Sounds like you have it figured out my friend. Keep plugging away. All the best to you in the 4th QTR and beyond....
1 Reply
Michael Henry
Real Estate Consultant · Brookfield, WI · Member since 2014 · 873 posts · 350 votes
9y
@Katie Haney I agree with @Brian Ploszay on the point that there will be some additional costs associated with the property at that price point in terms of repairs. In Milwaukee, WI you will find at many house flippers is buying in the range of $50-$70K property that is worth a lot more.
@Shawn Ackerman is a successful out of state investor who focuses on properties <$50K so it can be done.
I usually suggest a price range of $100K - $150K to people who are investing in Milwaukee from out of state. At this range, you can manage the property yourself and you can find a turnkey property, fixed up and rented out, without paying the up-change the turnkey company changes.
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Nicolas Conca
Rental Property Investor · Denton, TX · Member since 2017 · 51 posts · 17 votes
9y
Sounds like a c class neighborhood. You can try Tennessee and or Cleveland, OH. Hope this helps.
0 Reply
Darren Budahn
Investor · Milwaukee, WI · Member since 2014 · 811 posts · 420 votes
9y
I would heed the advice of Jay Hinrichs. Can you make a 50k duplex work being out of state. Yes, you can. Do most people make it work? The answer is no. Very high risk if you are just starting out and have no team or systems in place.
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James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
9y
@Katie Haney
I saw a little bit of discussion on neighborhood grading B,C class etc....It's important to note what B & or C class means. This could be something different for everyone. Specifically regarding the Cleveland market which several people have been discussing take a look at The Ultimate Guide to Grading Cleveland Neighborhoods.
I agree with the notion that you would probably be better served to up the price point a bit. The $50k-$60k duplexes are lower quality & or need some repairs. I think for the long haul you want to be looking at something that's over $100k & brings in $675+ per unit. Tenants are more stable & the asset is in better condition.
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Christopher Haynes
Investor · Baltimore, MD · Member since 2015 · 71 posts · 24 votes
9y
Is it about cash flow or appreciation I have one in Baltimore that I picked up for 45k and it cashflows at 1600 a month . I just picked another one up cheaper needs some work but nothing major I should rent for 750 but I'm expecting little if any appreciation
0 Reply
James Tolbert lll
Contractor · Birmingham, AL · Member since 2016 · 4 posts · 1 vote
9y
I can put a deal together in Birmingham Alabama
0 Reply
Mark A Story
Investor · Selma, AL · Member since 2017 · 39 posts · 13 votes
9y
Originally posted by @James Tolbert lll:
I can put a deal together in Birmingham Alabama
Sounds interesting tell us more, James.
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Account Closed
San Francisco, CA · Member since 2017 · 56 posts · 23 votes
8y
@Chris Martin
I like your strategy but for an investor with $50k liquid, investing in an 8 unit is difficult unless partnering with one or more investors. How would you approach this if you had $50k with $10k in reserves?
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Megan M.
Birmingham, AL · Member since 2017 · 8 posts · 3 votes
8y
Do NOT do business with this man James Tolbert!!!! He is NOT a certified contractor!!!

Originally posted by @Mark A Story:

Originally posted by @James Tolbert lll:
I can put a deal together in Birmingham Alabama
Sounds interesting tell us more, James.
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