Best markets for $100K properties.

Investor · Denver, CO · Member since 2015 · 22 posts · 5 votes

So a recent BP blog was posted regarding the pitfalls of turnkey investing for $30K properties, which I totally get. But also mentioned "that $100K property you avoided because you thought it was too expensive." In Denver, $100K doesn't go very far.

So, where in the country have people had (buy and hold rental) success with $100K properties?

Look forward to your responses!

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Caitlyn Hummer

Turnkey Investment Provider · Columbus/Dayton/Cincinnati, OH · Member since 2018 · 79 posts · 41 votes

Dayton, Ohio offers great opportunities between $75k-$100k. Some duplexes are available just below $100k. Great growth opportunity and the city itself is seeing the revitalization and growth many other mid-size American cities have seen over the past few years.

Some turnkey companies will offer properties in the 50s and 60s in the Dayton area. Don't go there. These have to be "war zone" D Class neighborhoods that you don't want to buy in for the long-term or it's a terrible rehab that is going to leave you with problems.

Some cities between Dayton and Cincinnati (the 2nd largest city in Ohio) - like Middletown and Franklin - also offer great returns and have high renter percentages than other suburbs.

Cincinnati is also on our radar to expand into. Just be careful. The west side of Cincinnati is likely where the most opportunities under $100k are. However, just a few streets can make a difference between low B/high C class neighborhood and super low D class area.

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Jeremy TaggartBusiness Member
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 850 posts · 646 votes
8y
@Steve Burrell Pittsburgh is solid for $100k props
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Robert Herrera
Investor · Denver, CO · Member since 2015 · 492 posts · 267 votes
8y
Steve Burrell here in the Pueblo market. I own quite a few properties there that all beat the 1% rule
2 Reply
Steve Burrell
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Investor · Denver, CO · Member since 2015 · 22 posts · 5 votes
8y
Originally posted by @Robert Herrera:

Steve Burrell here in the Pueblo market. I own quite a few properties there that all beat the 1% rule
This is really interesting. My that's where my parents live. Thanks!
1 Reply
Blake Brose
Realtor · Kansas City, MO · Member since 2014 · 148 posts · 40 votes
8y
In the Kansas City Metro, we stay to 90-200k ARV properties, unless they are multi-family, which we do as well. Our turn-keys can have all new everything at that price.
These are like the bread and butter, where you avoid most of the riff-raff.
Yeah, on the face, discount properties seem like the way to go, but then comes the maintenance, tenant problems, and that equals little profit.
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Alex Deacon
Investor · Pittsburgh, PA · Member since 2015 · 1k+ posts · 1k+ votes
8y
@Steve Burrell you want to avoid certain areas. Even in the so called good areas there are small pockets of those neighborhoods that you want to shy away from. Pittsburgh is so street specific. Two blocks could be the difference from a great investment to a below average investment. The deals are here for sure you just have to be on the lookout 24/7. The great deals dont last more than a few days. The good deals are hard to find and the rest are not worth buying.
1 Reply
Caitlyn Hummer
Turnkey Investment Provider · Columbus/Dayton/Cincinnati, OH · Member since 2018 · 79 posts · 41 votes
8y
Dayton, Ohio offers great opportunities between $75k-$100k. Some duplexes are available just below $100k. Great growth opportunity and the city itself is seeing the revitalization and growth many other mid-size American cities have seen over the past few years.
Some turnkey companies will offer properties in the 50s and 60s in the Dayton area. Don't go there. These have to be "war zone" D Class neighborhoods that you don't want to buy in for the long-term or it's a terrible rehab that is going to leave you with problems.
Some cities between Dayton and Cincinnati (the 2nd largest city in Ohio) - like Middletown and Franklin - also offer great returns and have high renter percentages than other suburbs.
Cincinnati is also on our radar to expand into. Just be careful. The west side of Cincinnati is likely where the most opportunities under $100k are. However, just a few streets can make a difference between low B/high C class neighborhood and super low D class area.
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Larry Fried
Investor/RE Broker · Eugene, OR · Member since 2014 · 3k+ posts · 968 votes
8y
Well I've had turnkey success with just below $100k properties in Jacksonville, FL, that I bought years ago. Those prices in good areas are a thing of the past in that market. So, where I like now particularly now for turnkey opportunities with good reliable companies at that price point are Dayton, Oh, NW Indiana, and Kansas City, MO.
1 Reply
Lane Kawaoka
Rental Property Investor · Honolulu, HAWAII (HI) · Member since 2011 · 4k+ posts · 2k+ votes
8y
Alabama, Kansas City, Memphis, Atlanta
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Ozzy SmithPro Member
Specialist · Dayton, OH · Member since 2014 · 352 posts · 265 votes
8y
I'm not sure what @Caitlyn Hummer is talking about when he says stay away from $50,000 and $60,000 turnkey properties in Dayton. That is what I invest in personally and that is also what I wholesale. They are far from zones.and many of them are not the neighborhoods. The D neighborhood sale turnkey in the 20s so I’m guessing he has very little knowledge of Dayton. A solid C neighborhood is where I invest and can get them 50,000 all day long. I actually have two duplexes in solid C+ neighborhoods for 50,000 that came with tenants. And if you want to talk about the quality of tenant, The one is a TSA agent and his wife is a teacher. They have been in the house for seven years and take excellent care of it and have never missed a payment. If you want to come see for yourself just let me know when and I will take you on a tour of my properties that are constantly renting at $750-$800 a door for $50,000 or less
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Roshan K.Pro Member
Oklahoma City, OK · Member since 2017 · 258 posts · 215 votes
8y
oklahoma city is pretty good too... you can do well with a 100k property
1 Reply
Gary Swank
Real Estate Agent · Pittsburgh, PA · Member since 2014 · 821 posts · 255 votes
8y
@Steve Burrell Hi Steve, Pittsburgh has a fairly decent market of buy and hold rental 100k properties. In that price range, I believe it's easier to find Single Family rental properties than multis but you also have to be cognizant of the various neighborhoods in Pittsburgh. I have read that according to RentRange rents for SFRs in Pittsburgh rose 12.6% and the average gross yield was over 15%. Of course these are based upon median results. In Pittsburgh it's all about location, location, location and acting fast on the good deals. Best of luck to you in finding the market that works for you....Gary
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Kim Tucker
Flipper/Rehabber · Kansas City, MO · Member since 2011 · 2k+ posts · 712 votes
8y
Kansas City Metro has solid houses from about $80k to about $200 that you can cash flow and several turn key providers and lots of wholesalers who can get you set up.
0 Reply
Shawn Foster
Investor/Wholesaler/RE Agent · Kansas City, MO · Member since 2015 · 69 posts · 8 votes
8y
We have plenty of great investment properties here in the Kansas City metro for 100k. Let me know if you would like to talk more about the market here!
1 Reply
Andrew SyriosPro Member
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Residential Real Estate Investor · Kansas City, MO · Member since 2014 · 10k+ posts · 5k+ votes
8y
The best places (in many ways, the only places other than warzones) are in the Midwest and South; places like Indianapolis, Memphis, Kansas City, Oklahoma City, Raleigh, Birmingham, etc.
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Rocky Griffin
Flipper/Rehabber · Edmond, OK · Member since 2016 · 209 posts · 107 votes
8y
100k will buy you at least two producing properties here in Oklahoma. If your willing to rehab you could easily turn that into 4.
1 Reply
Jay Strickler
Investor · Ruston, LA · Member since 2017 · 21 posts · 3 votes
8y
I have been impressed with the opportunities on the Mississippi Gulf Coast. Rents are running about 1.4% for SFRs in some areas and these are good clean houses. One example - I have 4 offers in currently on houses in Jackson County in the $60-65k range and the rents are $900-950/month. This is definitely an overlooked area that has some accelerating growth associated with the defense industry. Harrison County had 1+% growth in 2017 (if I remember the stats right). Good Luck and Happy Hunting Jay
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Christy Philippoff
Ocean Springs, MS · Member since 2017 · 71 posts · 32 votes
8y
Jay Strickler where in Jackson county are you investing? I live in Jackson county in Ocean Springs. Are you investing in Pascagoula and Moss Point?
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Jay Strickler
Investor · Ruston, LA · Member since 2017 · 21 posts · 3 votes
8y
@Christy Philippoff Hi Christy, I have properties in Gulfport, Biloxi, and Pascagoula. Ingalls in expanding and I always like properties around an AFB like Kessler. Ocean Springs (grew up there) is to pricey for what I try to buy.
1 Reply
Alex Price
Cleveland, OH · Member since 2018 · 133 posts · 59 votes
8y
Greater Cleveland has solid turnkey for $60 - $100k. I've also heard good things about KC and Memphis.
1 Reply
James Wise
Real Estate Broker · Cleveland Dayton Cincinnati Toledo Columbus & Akron, OH · Member since 2013 · 30k+ posts · 20k+ votes
8y
Originally posted by @Steve Burrell:

So a recent BP blog was posted regarding the pitfalls of turnkey investing for $30K properties, which I totally get. But also mentioned "that $100K property you avoided because you thought it was too expensive." In Denver, $100K doesn't go very far.
So, where in the country have people had (buy and hold rental) success with $100K properties?
Look forward to your responses!
$100k will get you a NICE property anywhere in the Midwest. Cleveland, Toledo, Indy, Kansas City etc........You should be able to get B-Class properties with solid tenants for your $100k price point in any of those types of markets. When buying a $100k property in those markets your risk should be relatively low as again you are hitting the higher end of rental price points. Yes of course your ROI won't look as sexy on paper but it's a give & take, which you get or you'd be looking for $30k properties.
For Cleveland specific research I'd check out The Ultimate Guide to Grading Cleveland Neighborhoods. For the other neighborhoods I do not have any 1st hand experience in them but i'd imagine that other members here on BP can give you a detailed insight into them like I did with Cleveland.
Good luck & i'll see you around the forums.
1 Reply
Joey Hamaoui
Real Estate Agent · Jacksonville, FL · Member since 2016 · 406 posts · 163 votes
8y
Hey @Steve Burrell,
a lot of my clients purchase in the $80K-$120K range in Jacksonville, FL. They're typically looking for 7-10% returns and we've had some success. Feel free to reach out if you want to learn more about our market.
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Clayton MobleyPro Member
Birmingham, AL · Member since 2014 · 875 posts · 947 votes
8y
@Steve Burrell as @Lane Kawaoka mentioned, Alabama is a good market for that price point. We are in Birmingham, focus only on solid B/B+ properties, and our price points range from about 75k-130k, with 100k being the average. If you're looking for cash flow and a solid, reliable property that will attract reliable, stably-employed tenants, then the 100k range is a good place to be. Good luck!
0 Reply
Christy Philippoff
Ocean Springs, MS · Member since 2017 · 71 posts · 32 votes
8y
Jay Strickler I know. Ocean springs is crazy! We've thought about Biloxi but it makes me nervous because on one street homes are nice and on the next they aren't! Which area of Biloxi are you in? We'd love to stay investing in OS but like you said there is nothing affordable in this city!!
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Pat HeidingsfelderBusiness Member
Real Estate Broker · Biloxi, MS · Member since 2016 · 169 posts · 92 votes
8y
@Christy Philippoff Biloxi isn’t scary at all! I live and invest here!!
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Nick McKinnis
Real Estate Agent · Kansas City, MO · Member since 2015 · 85 posts · 19 votes
8y
Kansas City is a great market for $100k properties. You can get a lot for your money here. We are rehabbing houses with high end finishes and new capex items for $100k. I would highly recommend looking into Kansas City.
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