Investor · Los Angeles · Member since 2018 · 134 posts · 117 votes
Nooby question here! Does anyone know where I can find a list of or advise me on the best cities to look for investment opportunities (rental) under $100k? Ideally, I would like to start with $50k property but $50k-$100k is my threshold. I live in Los Angeles and you won't get anything in a safe area for $700k+.
@David Waddleton I moved from San Diego to St. Louis specifically for this reason. I have 7 houses here and purchased them all over the past year. I paid 22,000-34,000 and they are all rented from $895-1200. Cashflowing 50% at least after taxes and insurance and maintainence are paid. For $50,000 you can get a turnkey property that’s Cashflow positive!
Just have boots on the ground or someone you trust in the area. You could develop a relationship with someone on BIgger Pockets!
@Alpesh Parmar
I’m literally trying to do exactly what u described. I have no problem going to the area I wanna invest n just working from there until it’s done. If you can give quick n helpful pointers I would greatly appreciate it. Like how much was your first investment? How did it take for you to sell the investment , if you were selling the home?
Just to add to Johns point, were you referring to 100k down? ~4-500k home. This is what I gathered when you mentioned home prices in LA are 700k+. I could be wrong, most people are referring to a 100K total price, if that's what you meant, I would save a bit more before you jump in.
At that range its more of a headache than its worth. Have you thought of Las Vegas? You're relatively close and the market there is quickly growing.
@David Waddleton I average about 22- 35% here in Cleveland. I have partners from Cali. Just be careful who you deal with. No matter how popular they seem. My suggestion is fly out and check out they're system. No matter where you go people try and do take advantage of out of state investors. Good luck
Atlanta metro area has a lot of options. I've been in construction and real estate here in Atlanta for more than 20 years. Let me know if you find any properties online that you need help inspecting, remodeling, or managing in the Atlanta area.
@Robert Ellis
Hi Robert,
I’m curios then, with those number: 75k home, 1,300 in rent. What numbers are you putting in for expenses?
Vacancy %
Maintenance %
Capital Expenditures %
Management Fees %
We are using Brandon’s 7% ,10% ,10% ,10% set up and with those number we are coming up negative cash flow.
Just trying to understand if we’re being to heavy on those expenses.
Thank you advance for your time and help.
I know many people have bought houses without looking at them. Maybe when I get more experience I'll do the same. I drove by about 40 houses on my last trip to Michigan and in the sub-$100k price range, you can have a nice looking house but be on a bad street or next to bad neighbors. I like to see what I'm buying, at least for now.
@Courtney M. Hey Courtney. I suggest looking into Lubbock Texas. I am planning to move there this month and buy properties. All kinds of options available under 100k. There are 3 great hospitals in the area and a university. Excellent for rentals.
@Alpesh Parmar
I’m literally trying to do exactly what u described. I have no problem going to the area I wanna invest n just working from there until it’s done. If you can give quick n helpful pointers I would greatly appreciate it. Like how much was your first investment? How did it take for you to sell the investment , if you were selling the home?
My first investment was a disaster but I took is as learning experience. Even after losing most of my money with a small turkey provider in Cleveland, I decided to continue. I ended up buying 4 more properties through TKP and learning a lot along the process. I sold 3 of my properties through the same TKP so I didn't have to work hard. I haven't sold any of my newly acquired properties so not sure how hard or easy would it be.
I flew out to Ohio twice last year before finally deciding on Cleveland. 2 duplexes and 2 SFRs since then....After lots of research I discovered that if you don't care about appreciation, but you are OK with focusing on nothing but cashflow then Cleveland and Milwaukee are the best places in the US to buy in C neighborhoods and still have a low point of entry.
Oh, and don't let any "stuffy" bankers lie to you and tell you that they won't finance anything under $50,000. I found a mortgage lender that is based in Ohio but they lend in 48 states that will.
@David W. There is a lot of good advice and tidbits already given to you. The central theme is invest in the midwest. My advice would be to be careful with whatever you do because we are reaching the end of the current real estate cycle. It probably won't end badly at all (nothing like 2008) but the current overall econcomic cycle is getting tired and we are due for 4 more rate hikes that will impact the price of real estate since most people buy using loans tied to interest rates. Also, if you can find areas with an economic advantage that will bring jobs during the end of this and start of the next economic cycle you will do well. For example, the energy sector is rebounding as we are now seeing oil jump above $75 a barrel and Natural Gas is now over $3. Locations tied to energy may work well....I have heard positive things from one acquaintance of mine that exclusively does stuff up in Alaska. I wish you the best! Real Estate is such a great way to put money to work and remember that you make money in real estate in the buy (finding the right buy at the right price)!
@Brian Garlington
Hey Brian I have been looking at Holton-Wise you tube videos and I really like the numbers they put out. Let me know if you end up buying anything from them. I am really interested in possibly purchasing a few properties.
@Janett Lewis
Hi there Janett, I have also been looking at St. Louis. Do you have any zip codes or areas to buy and zips and areas to avoid. I have several properties in KCMO and One forum on BP had a list off what zips are good and what zips to avoid. It was extremely helpful when I purchased my properties. If you have any resources we would be grateful. St.Louis seems very good to me
@Tinley Jones
Thanks for asking the question I was thinking!! I’m in the same boat. Live in the SF Bay Area and cant afford anything here.
I hear some people say do not buy out of state and I hear others say definitely buy out of state. I’m going to go with the latter or real state investing will be completely off the table! Good luck with your search. If I come across anything promising I’ll send it your way!