Updated over 7 years ago on . Most recent reply
$7,000 purchase, now the rehab
Some of you may have read my post and/or watched the video of my $11,000 house. That is all in after all rehabbing. Currently rented out for $500/month. Could have easily gotten $550/month.
Well we are now rehabbing another house. Initial purchase price is also $7,000 (same as the $11,000 house.) I wanted to show some videos of this house as we update and go through the rehab process. Please keep in mind that I am a small timer still starting out. I do most of the work myself and I contract out some of the work through a local handyman that I use.
I also invest strictly for cash flow and plan to keep my properties for a long long time.
Anyways. I started on this house this week and here are the videos I made from this week with my phone. Also please remember I am not into film and such, just a guy with a phone who films stuff when I think about it and also have a few minutes to do so.
This house had a tenant in it for $441/month with around 2 months left on the lease when we bought it.
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I’m looking in Birmingham at houses that cost $20,000-$40,000. The rental demand in these areas is strong and always will be. To put it bluntly, poor people rent, they don’t buy. There will never be a shortage of people living paycheck to paycheck that need a roof over their head. The way things are headed with income inequality I think catering to the lower income is a safer bet. I read that 75% of America will be renters by 2050. The middle class are a shrinking demographic. Why would I build my business around a customer base that is decreasing? The property I own now is in a less than desirable part of town in Seattle. I would call it a C+. It’s not a “war zone” but there is a higher rate of crime and even some gang activity. I’ve had it four years and it’s been fine. My property manager is good at what he does. I think management is the key to the low income puzzle.