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Updated almost 7 years ago on . Most recent reply

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Alshan San
1
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25
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Investing in cheap houses VS expensive ones

Alshan San
Posted

As I'm starting out im realizing all sub 60k houses are in bad neighborhoods where the crime stats are higher and/or significantly higher than usual. With that risk in mind, isn't it easier and safer to invest in 100k houses and up and secure higher rents? What's the point of having two cheap houses that bring in 1500 bucks in rent a month and double the work and trouble when you can buy one more expensive house and rent it for 1400 to stable tenants. Would like to hear from both sides. Also does anyone specialize in 200k and over houses, and how is that working out? Collecting $2000 in rent a month seems like an easier option. 

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Arlan Potter
  • Investor/Accountant/Builder
  • Meno, OK
918
Votes |
1,603
Posts
Arlan Potter
  • Investor/Accountant/Builder
  • Meno, OK
Replied

I am a cheap house buyer

For example:

$10,000 house will rent for $400/month

$20,000 house rent for $450

$40,000 house rents for 600

$60,000 house rents for $700

$100,000 house rents for $850

Theoretically 10 $10K houses will bring in $4,000/month in rents. The same $100,000 spent on one house will bring in $850

Rent/Purchase percentage better with cheaper houses.

If someone trashes a cheap house, I clean up and move on

If someone trashes an expensive house I am sick

I am a cheap house buyer

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