Where can I buy properties today -$100k that rent $1200+??

Buying & Selling Real Estate
14yFollow

Where can I buy properties today -$100k that rent $1200+??

Shari Posey
Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes

I'm in So. Cal and I would like to invest near by if possible but if I must go outside my comfort zone I will. I own and self manage a few single family units here but I really want to add a few more now so they can be paid off by the time I'm ready to sit on the beach all day collecting rent checks in about 7 years.

I know prices are up in many markets and the deals are really hard to come by but where can you still make a decent return right now, today? (I would like appreciation but I won't count on it.)

I would also like to know from those of you who are investing in areas far from where you live if you are using turnkey companies to handle everything from purchase to management, or are you doing it piecemeal with Realtors and prop management companies?

For those Californians, I've looked at Riverside, Hemet, the Cochella Valley, Bakersfield but I don't see anything under $100k that rents for $1200+.

1Reply
54 views

Most Popular Reply

Jon Klaus
Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
14y

Plano TX would work. Plano is completely built out now and the schools are pretty good. Most of it is more than $100K and and a lot more in most areas. However east Plano has some $100k neighborhoods. Here are some listed for $90k-$110k.

http://www.realtor.com/realestateandhomes-search/Plano_TX/price-90000-110000#/pagesize-50/pg-1

I think these would rent for $1300 on average.

1Reply
See this reply in the discussion

42 Replies

Jump to latestLatest
  • Dick Green
    Residential Real Estate Broker · Conroe, TX · Member since 2008 · 1k+ posts · 43 votes
    14y

    Texas market is still doing well. Try www.publicans.com

    0Reply
  • Shari Posey
    OP
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    14y

    Texas is a pretty big place. Can you be specific like a particular city and neighborhood?

    I checked out that website--it's a law firm that handles tax sales in several states. Are you recommending their services?

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    Any of the big Texas cities and some of their suburbs can meet your criteria (except for being in/near Southern CA).

    0Reply
  • Stephen Masek
    Investor · Mission Viejo, CA · Member since 2012 · 627 posts · 204 votes
    14y

    The problem with Texas is the high property taxes. If you live there and do not pay state income taxes, fine, but rental income made in Texas (or anywhere else) is taxed by California.

    0Reply
  • Steven Hamilton IIPro Member
    Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
    14y

    Some locations in or near Chicago can be rather lucrative.

    [email protected]224-381-2660
    0Reply
  • Shari Posey
    OP
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    14y

    I'm not moving from paradise and personally I don't think CA taxes are bad considering.

    Chicago would be good because I have family there and go back once a year. Where specifically? The western suburbs, the southside? I grew up in Hinsdale but I doubt that has numbers that work.

    In Texas, how about Plano? I used to live there a long, long time ago. Low appreciation but if the rents are high that can work. Actually, back in the '80s the rents were pretty high so I guess they still are.

    0Reply
  • Justin S.
    Residential Real Estate Agent · Chandler, AZ · Member since 2009 · 1k+ posts · 928 votes
    14y

    You can get lucky in AZ with those numbers, but they are very very hard to find right now.

    0Reply
  • Kyle K.
    Real Estate Investor · Chicago, IL · Member since 2008 · 122 posts · 46 votes
    14y

    I love Chicago, but I wouldn't invest there. Texas is probably your best bet.

    0Reply
  • Tyler Byrnes
    Bellingham, WA · Member since 2012 · 14 posts · 2 votes
    14y

    I second the AZ market around the Phoenix area, although as Justin stated above, many investors started picking through that market over the past couple of years. Still great opportunities, but maybe hard to get under contract without being on the ground or havinng a good set of local eyes and ears.

    As for Texas, I know of an investor from my area (WA state) who has been in the Austin market for some time, It's been so good that he just picked up and moved his family there to be able to make more deals. Obviously it's working well for him there. He is a buy and hold for cash flow guy.

    Good luck.

    T

    0Reply
  • Shane Woods
    Real Estate Agent · Weatherford, TX · Member since 2011 · 726 posts · 284 votes
    14y
    Originally posted by Shari Posey:

    In Texas, how about Plano?

    Even in my little city population 25,000 (Weatherford, TX) you can find these properties. I'm with Jon K., in and around DFW, Austin, Houston, and San Antonio you should be able to pick up properties like this. Especially in good older neighborhoods (modest brick houses built late 60s-80s) close to highly rated schools.

    0Reply
  • Joe Bertolino
    Investor · El Dorado Hills, CA · Member since 2012 · 1k+ posts · 1k+ votes
    14y

    Fresno, Stockton, parts of Sacramento.

    0Reply
  • Nick J.
    Residential Real Estate Broker · Payson, AZ · Member since 2009 · 3k+ posts · 1k+ votes
    14y
    Originally posted by Tyler Byrnes:

    As for Texas, I know of an investor from my area (WA state) who has been in the Austin market for some time, It's been so good that he just picked up and moved his family there to be able to make more deals. Obviously it's working well for him there. He is a buy and hold for cash flow guy.

    Good luck.

    T

    I've heard this before. Its not surprising when you see and hear of some of the deals to be had. Texas would be the state I would venture into if I were to poke my neck out of my state. For now, I'll hang tight though.

    Like Justin already said, the Phoenix area(we call it the valley) is really hot right now. You've really got to put in a lot of work to find deals.

    0Reply
  • Jon Klaus
    Developer · Garland, TX · Member since 2008 · 8k+ posts · 4k+ votes
    14y

    Plano TX would work. Plano is completely built out now and the schools are pretty good. Most of it is more than $100K and and a lot more in most areas. However east Plano has some $100k neighborhoods. Here are some listed for $90k-$110k.

    http://www.realtor.com/realestateandhomes-search/Plano_TX/price-90000-110000#/pagesize-50/pg-1

    I think these would rent for $1300 on average.

    1Reply
  • Steve K
    Investor · Orlando, FL · Member since 2012 · 431 posts · 106 votes
    14y

    Another vote for Texas. In Houston you can buy new construction and get 1.2-1.3% of PP in rents.

    1Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    14y

    Shari: most of the neighborhoods built in the late 80's to present on the west side of the highway in Bakersfield rent for $1300+ (3/2s or larger). What price under $100K would make it work for you? While very little of what is currently listed on the MLS is under 100K, many of the recent cash sales are. How do you think investors are getting those prices. Use your imagination. :)

    1Reply
  • Account Closed
    Lyons, CO · Member since 2011 · 57 posts · 1 vote
    14y

    North Glenn, Colorado. Suburb in north Denver. Much lower prop taxes and Colorado is attracting people, unlike some northern states. Fort Collins in Colorado is another good option.

    1Reply
  • Don KonipolBusiness Member
    Investor · The Woodlands TX / Avon, CT · Member since 2009 · 6k+ posts · 10k+ votes
    14y

    Shari Posey, I invest in both Texas ( Houston, Dallas - Fort Worth, San Antonio, Brownsville ) and Arizona ( Maricopa County). Right now my commercial properties are in Texas and my residential in Arizona. If you would like the contact info for a broker in Az that I've had good success with PM me.

    Private Mortgage Financing Partners, LLC
    WebsiteView Page
    0Reply
  • Shari Posey
    OP
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    14y

    Unfortunately, I don't have all cash to buy. I was planning to put 20% down at current interest rates. Help me see where being creative on the financing will make the numbers work--I guess I'm too traditional. I do see tons of flips that were bought for $80-90k but are now $140k and still need work like landscaping, new toilets, etc. Actually, I don't know how they are getting those for $80k today.

    I think anything under $100k that just needs carpet & paint works if I could rent it for $1300 but I think that rental rate is pretty aggressive in Bakersfield...I talked to an investor there they other day and he said to plan on $1000.

    0Reply
  • Jon Holdman
    Rental Property Investor · Mercer Island, WA · Member since 2008 · 22k+ posts · 14k+ votes
    14y

    Some areas around Denver can work. Its comptitve, though, and finding $1200 in rent for $1000 is a challenge. Northglenn might work, Ft. Collins probably not.

    Since you're in CA, Shari Posey, how about the inland empire? I'd think you could find some deals there. Or up around Sacramento. Maybe not as good as other places, but a lot easier to get to if you needed to get eyes on the property. Which you certainly would for buying.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    14y

    Bakersfield is 350K people. There are plenty of neighborhoods where there is nothing under $1200 to rent. Most investors you'll meet and hear about are going in based on low entry value. Sounds like you are looking for a better tenant pool and are willing to pay more. Stay focused on neighborhoods and better home features and you I'm sure you can put something together.

    The one glitch is your need for financing. The competition is all cash in every price range. Local B&H buyers are going in at 120-140K and buying several props a month with cash. Hard to compete with that but not impossible.

    0Reply
  • James H.
    Investor · Fort Worth, TX · Member since 2011 · 1k+ posts · 450 votes
    14y

    I really never hear anything about Okahoma or Kansas. Surely the city centers in those states would perform similar to Texas?

    0Reply
  • Shari Posey
    OP
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    14y

    @K. Marie Poe--yes, I'm seeing investors who paid $90k all cash, flipped it and the new buyer is paying $140k all cash. That's crazy to me because these aren't even nice flips. I would consider paying $140k if I didn't have to go in to do more work just to be able to get the average monthly rent. That's why I'm considering other areas of the country where maybe there aren't such deep pockets.

    0Reply
  • Account Closed
    Investor · Central Valley, CA · Member since 2012 · 6k+ posts · 3k+ votes
    14y

    Brian Hoyt I've been wondering about OK myself. Hadn't even thought about a Kansas. What I've see from my little bit of research is that OC inner city is low rents and low entry pricing similar to what I see in the Central Valley of CA (which is similar to many parts of TX). The better rents seem to be in neighborhoods where the purchase prices are quite a bit higher than what I'm used to. $150-175K for $1300. Although like any market I know there are people working it and buying for the right price. They just aren't hanging out on BP. :)

    0Reply
  • Will BarnardPro Member
    Moderator
    Developer · Santa Clarita, CA · Member since 2008 · 15k+ posts · 10k+ votes
    14y

    Another thing to consider: Are you looking soley at the best cash flow you can get or are you looking long term down the road for future appreciation? In case #1, you will likely lose out on higher appreciation, on #2, less cash flow, but better appreciation. It is difficult to get both.

    One area not mentioned in this thread thus far (though I have said it many times in other threads) is Las vegas. In my opinion, you have the best of both worlds. You can buy at $50-$70k and get $1k+ rents so at or close to 2% rule is present. In addition, many of these homes are newer and in nice neigjborhoods so you get a decent tenant profile. Lastly, prices fell so fast, so hard that they dropped well below the cost to build. It only makes sense that prices will have to go back to cost to build which is almost double the current value. Even if that takes 10 years, you would be well ahead of the game from appreciation, tax benefits AND cash flow.

    Podcast Guest on Show #130
    1Reply
  • Shari Posey
    OP
    Residential Real Estate Agent · Long Beach, CA · Member since 2008 · 432 posts · 63 votes
    14y

    I've been thinking about Vegas...plus it's really a great place to check on your investments every so often and write off those expenses :) I would love to buy a few properties for $50-70k that rent for $1000! Is that possible to find just on the MLS or are these trustee sales, etc. Honestly, I'm an agent so my only experience buying properties is through agents. I guess wholesalers are the way to go but I don't have all cash.

    I plan to hold a minimum of 10 years--forever really--so I would prefer cash flow rather than appreciation.

    0Reply
Join the conversationCreate a free account to reply, vote on answers and follow this thread.
Log InJoin for Free