In Baltimore dont go lower than 100k arv minumum. That means purchasing minimum 70k usually. Those are minimums. I recommend higher arvs like 130k minimum for a higher level of stabilty and decent tenant base. Whatever you pick start a business plan out with asking yourself who your tenant base is.
If you cant go section 8 in the areas you are looking upgrade to a point where you can actually get decent market tenants that wont screw you over. Ask local pms or people on here about your areas. Get a good investors agent as well.
I invest in Genesee County, MI. I've been able to get city owned homes and update all the essentials; roof, plumbing, electrical and service the HVAC for 3 bed 1 bath houses that rent for $700-800. Not war zones. I've lived in these neighborhoods. You can send me a message if you'd like to talk.
In Baltimore dont go lower than 100k arv minumum. That means purchasing minimum 70k usually. Those are minimums. I recommend higher arvs like 130k minimum for a higher level of stabilty and decent tenant base. Whatever you pick start a business plan out with asking yourself who your tenant base is.
If you cant go section 8 in the areas you are looking upgrade to a point where you can actually get decent market tenants that wont screw you over. Ask local pms or people on here about your areas. Get a good investors agent as well.
you can try two options. One use your 50k cash and invest it in REITS Stocks with high dividends 10 percent, Pandemic right now a stock prices are at a fair value. With that said you will get cash flow with the dividends plus stock value. I suggest you look up best REITS on google finance. Plus FEDs are buying corp bonds left and right.
Option two invest in a 40k cash house 10 k use for emergency rehab, I would look at cities with best low unemployment rate. You'll have to invest in a good property manager and a good credit check agency. Also, look at what are the regulation in the city that you are interested. Regulation will hurt you cash flow or investment funds. Cities like Reading P.A have many houses 35-80k but they have 2 years of city inspection and they love to crack down on landlords. Plus the city have a high unemployment rate...
I would pick Option One investing in REITs or a good stock like McDonalds can give you a nice dividend investment. The liquidity is far much easy to get out if you cash flow has sunk than in real estate value of 50k cash.
Have this in the back of your head the cheaper it is the more cost you will have...
Are there any places that sell single family houses for 50k that’s not in a war zone?
I’m looking for houses that I can buy that would cash flow in descent areas. I’m not looking for appreciation, so no need for that debate please.
Hi Joe - I see you are from San Antonio...there are those towns all over East Texas! Do a search on Realtor.com for <$50,000 in Texas and you'll see where there are concentrations.
You are right! At the end of the day the grass is just as green in my own backyard. I would vote for your post 10 times, but it limits me to one.
There are opportunities for 50k SFH's in some Western and Northern NY towns. Especially if you wanted multi-families you can definitely get for 50k per unit and not in a war-zone.
@Joe S. I have two condos that I used the BRRR method and have another under contract to close on July 31st. To be condos are excellent. Low expenses and I have been very lucky as they have seem to run themselves, also they are out of state.
To me they are much better than a SFH in that price range just because cap ex isn't a thing with a condo due to HOA fees, just have to make sure the HOA is not over priced.
REITS https://www.investor.gov/intro... are way to go now, it's not to say it's same as real estate or returns can vary. It's good to have real estate as overall strategy to lower your overall tax liability, depreciation, write off, but you are more involved even with property mgmt. As with any investment is good to diversify especially if you work a job and they match 401K plan some REITS return over 10% without fixing toliets or going to eviction court
@Joe S. Even if you can, the numbers aren't going to work. The price is too low to allow a decent renovation so you're most likely going to be buying something that is outdated and has a lot of deferred maintenance. These cheap properties are typically going to be renting for around $600. Your maintenance and repair costs will eat up your cash flow. It costs just as much to repair a leaky faucet or replace a hot water heater on a property renting for $600/mth as it does on one renting for $900/mth. You're maintenance costs as a percent of rent will be too high.
@Joe S. Even if you can, the numbers aren't going to work. The price is too low to allow a decent renovation so you're most likely going to be buying something that is outdated and has a lot of deferred maintenance. These cheap properties are typically going to be renting for around $600. Your maintenance and repair costs will eat up your cash flow. It costs just as much to repair a leaky faucet or replace a hot water heater on a property renting for $600/mth as it does on one renting for $900/mth. You're maintenance costs as a percent of rent will be too high.
@Joe S.50k , go 60s, and you can get you a nice SF in a decent area with about 1kish in rent. PM in place. Jump to 80k and you can get a duplex with $1650 in rent ( net 11k ) in a nice area ,,,,,,,,
@Joe S.50k , go 60s, and you can get you a nice SF in a decent area with about 1kish in rent. PM in place. Jump to 80k and you can get a duplex with $1650 in rent ( net 11k ) in a nice area ,,,,,,,,
Good Luck
Thanks for pointing that out. 30k added can make a big difference is what your saying.