Areas that with houses for 50k

Joe S.Pro Member

Investor · San Antonio · Member since 2020 · 3k+ posts · 3k+ votes

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.

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Arsen Atanasovski

Investor · Rochester, MI · Member since 2017 · 1k+ posts · 584 votes

I got SFHs for $50k, that would cashflow very nice. Blue collar, not a war zone. Professional management.

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Lucas Ingram
Rental Property Investor · Member since 2020 · 10 posts · 3 votes
6y
@Gary Kline I’m very interested in the Binghamton market
0 Reply
Juan Piggee
Rental Property Investor · Dallas, TX · Member since 2018 · 12 posts · 6 votes
6y
@Bob Prisco I’m interested in learning about the Cleveland market. I’d love to get more of your perspective.
1 Reply
Jesse Mao
Investor · Katy, TX · Member since 2013 · 47 posts · 33 votes
6y
Originally posted by @Bob Prisco:
@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 ,,,,,,,,

Bob, I am interested in 60s for a nice SF in a decent area with about 1Kish rent.

0 Reply
Jesse Mao
Investor · Katy, TX · Member since 2013 · 47 posts · 33 votes
6y
Originally posted by @Brandon Penn:
In Erie, PA we have both SFH as well as duplexes that sell for 50k an are in decent areas (blue collar). I also manage properties if you are out of town or down have anyone close to the area. Shoot me a message if you are interested

Hi Brandon, I accidentally watched TV show "undercover billionaire". The guy fixed and flipped a house in Erie without knowing the area. I am interested in knowing more about the Erie market.

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Jason Taliaferro
Real Estate Agent · Baltimore, MD · Member since 2014 · 113 posts · 71 votes
6y
Originally posted by @Joe S.:
Originally posted by @Arsen Atanasovski:
Joe the sounds of it your strictly seeking cashflow, if that's the case house prices in $50k range give you a lot more leverage more cash flow then any deal That you will need to put $50k as down payment. If your seeking to pay no cap/ex and make money on appreciated areas then $50k houses are not the way to go. Also if you want to eliminate Cap/ex you may go into a $20/$30k house put $10/$20k in rehab and that takes out the Cap/ex. And your cashflow still high. This is an issue I have with lenders, they won't lend on deals I find because of their minimums of $100k or $75k, but what the lenders usually do not review or care is that a $50k house cash flows $100 to $200 difference then a $100k house, $50k house does a lot better DTI. Example I recently did, I purchased a SFH for $40k rehab was $17k I rented it out for $950. There was another SFH adjacent to the town I purchased the $40k house and that one was for $112k needed about $10k in rehab, rents around $1200 max on Zillow so if you were in a pitch (high mortgage payment) you would let it go for $1100. Short story the difference from high to low is $250 in rent range($950 vs $1200) The mortgage difference rough numbers $539/Mt for $112k 20% down at 6%. $191/Mt for $40k 20% down at 6%. Showing these numbers to a lender they still would take the higher loan.

So you don’t know any lenders that do small loans in your area?

Navy Fed goes low on loans. I think the minimum is $10k or lower.
1 Reply
Kevin Wilson
Rental Property Investor · Oceanside, CA · Member since 2019 · 121 posts · 58 votes
6y
@Joe S. Is that ARV $50K or before? Can find some in Pittsburgh.
1 Reply
Jason Feldman
Rental Property Investor · Omaha, NE · Member since 2018 · 7 posts · 5 votes
6y
@Joe S. North Omah a NE has historically been red lined but recently received a big influx of funding and has some strong Econ dev nodes. Great opportunities to cash flow and promising future of appreciation. HMU if you’d like to chat more about it.
1 Reply
Josiah Barkman
Rental Property Investor · Wooster, OH · Member since 2014 · 72 posts · 41 votes
6y
@Joe S. All over Ohio! Tons of great cashflow markets around here.
1 Reply
Arthur Haggerty
Rental Property Investor · Merced, CA · Member since 2020 · 10 posts · 0 votes
6y
@Sean Tabor Sean I am interested in MI. Please message me and if able to speak by phone that would be great. Thanks.
0 Reply
Rosa Aponte
Real Estate Broker · Fayetteville, NC · Member since 2020 · 11 posts · 3 votes
6y
@Joe S.
Hi
Yes in Cumberland County NC. We are near a military base. I purchased a house for $39k in a great area and flipped it for $99k. Right now our inventory is really now since many investors have found our market And are buying anything they can get there hands on.
1 Reply
Ellis Miles, Jr.
Investor · Milwaukee, WI · Member since 2014 · 2 posts · 1 vote
6y
Milwaukee, WI is an area that fits the bill. Local knowledge helps in finding the right home in a decent area as there are many great looking houses here in areas most want to avoid.
1 Reply
Erin Dorsey RobinsonPro Member
Real Estate Agent · Cleveland, OH · Member since 2020 · 280 posts · 365 votes
6y
@Joe S. We have property in Cleveland and suburbs that fits what you’re looking for. I have a number of clients who recently secured properties in the same category. Maple Heights, Garfield Heights, Euclid and parts of the city of Cleveland all offer opportunities in that range.
I’d be glad to connect you with some property managers and lenders to talk with if you would like to explore those options and gather more information. Feel free to send me a message if you have questions or think I could be helpful.
Good luck to you!
[email protected]
3 Reply
Erik Lathem
Rental Property Investor · Member since 2019 · 2 posts · 1 vote
6y
@Joe S.
I am working on a portfolio of SFRs between 40-50k. I personally own 4, but the seller has about 10 more.
Feel free to reach out for any other info.
1 Reply
Michelle Fenn
Real Estate Agent · Cleveland OH · Member since 2015 · 216 posts · 275 votes
6y
Cleveland market can be done around $50,000 with some repairs. I would look for SFH, 3BR and 2 Bath, the bathroom in the basement will still draw a tenant. Near westside of Cleveland near Metro Health hospital is an national economic opportunity zone. Metro Health is providing incentives for employees to live near the hospital. They are in the midst of rebuilding their main campus. Another area is Old Brooklyn or Brooklyn Center. On the east side there is Garfield Hts and Maple Hts. Both are bedroom communities full of 50's bungalows. Market rent in all these areas should be around $900-$1000 per month. Taxes are high in Garfield and Maple Hts but your tax basis is low. Our PM group's last listing in Garfield Hts had dozens of inquiries and I filled it in a single day. The current tenant asked me just yesterday if the owner would consider selling it. Both Maple and Garfield Hts have Point of Sale and Rental Inspections. Maple Hts also has a 100% escrow requirement, to cover repairs. Garfield has a POS but no escrow. Buyer assumes violations and has 90 days to make repairs, with extension for weather related issues.
Though duplexes and multi-family units can be more profitable, I find them much harder to manage. You add on the requirement to find compatible tenants, that must share close quarters. The shelter in place orders have brought to the surface many of the simmering conflicts in the multi-family units we manage. Over the past couple months I am feeling more like the social worker I was in my 20's.
You may also want to consider Akron area, Summit county. Very similar demographics as Cleveland but the court system is more landlord friendly than Cleveland.
5 Reply
Ondrej Brown
Rental Property Investor · Cleveland, OH · Member since 2019 · 150 posts · 47 votes
6y
@Joe S. Cleveland !
1 Reply
Dominic Mann
Rental Property Investor · Northeast Ohio · Member since 2019 · 8 posts · 9 votes
6y
Cleveland and some surrounding suburbs are still pretty good. Take a look www.dashpropertyinvestments.com
1 Reply
Aimee Parker
Zanesville, OH · Member since 2020 · 18 posts · 21 votes
6y
I believe Ohio is one of the leaders in strength for rental property. I spent over 20 yrs in real estate in Columbus, and currently reside about 45 mins east (where I grew up) in Zanesville. Property prices here are very affordable. For example, I noticed a property yesterday for sale at $59K, and has had a long term renter at $650/mo. It's my opinion that rent could be increased. It's not a war zone here by any means. I don't think you can go wrong in this area, or toward the Columbus area. There are quite a few pockets that offer this price range for property that attract renters and rents are up. Rentals are high demand in this area. Best of luck, happy to help share info!
2 Reply
Jason Cacioppo
Real Estate Agent · Commerce CIty, CO · Member since 2018 · 127 posts · 78 votes
6y
I came across Single Family homes just outside of Tulsa, OK and Dallas , TX in the $50,000 range that seemed to be C+ properties so not a complete war zone. Good luck in your search.
1 Reply
Jason Cacioppo
Real Estate Agent · Commerce CIty, CO · Member since 2018 · 127 posts · 78 votes
6y
@Dominic Mann I might need to look there too. lol

0 Reply
Jay HinrichsBusiness Member
Real Estate Consultant · Summerlin, NV · Member since 2014 · 45k+ posts · 66k+ votes
6y
Originally posted by @Arsen Atanasovski:
Well at $50k you will have some minor cosmetic repairs nothing crazy. Tenants would be your regular blue collar, in metro Detroit we have the big 3 so very good employment with future growth and very well paying jobs. I’ve been in the rental sector for over 10 years with only 1 eviction. Not a bad track record but you never know what’s in the future. I do property management but I do have a great company to get your property under good management.
thats quite a record one eviction in 10 years on C / D class Detroit props.. how do you do that. ?

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Dominic Mann
Rental Property Investor · Northeast Ohio · Member since 2019 · 8 posts · 9 votes
6y
Originally posted by @Jason Cacioppo:
@Dominic Mann I might need to look there too. lol

Well we will be waiting! lol

0 Reply
Matthew Lukas
Member since 2019 · 31 posts · 15 votes
6y
@Blake Choisnet yeah I would stay away from your Golden Brrrr concept for a little while until we see the official rollout of the Heroes act
************
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Remington LymanBusiness Member
Real Estate Agent · Columbus, OH · Member since 2017 · 6k+ posts · 7k+ votes
6y
Originally posted by @Aimee Parker:
I believe Ohio is one of the leaders in strength for rental property. I spent over 20 yrs in real estate in Columbus, and currently reside about 45 mins east (where I grew up) in Zanesville. Property prices here are very affordable. For example, I noticed a property yesterday for sale at $59K, and has had a long term renter at $650/mo. It's my opinion that rent could be increased. It's not a war zone here by any means. I don't think you can go wrong in this area, or toward the Columbus area. There are quite a few pockets that offer this price range for property that attract renters and rents are up. Rentals are high demand in this area. Best of luck, happy to help share info!

Damn those are great numbers. What are you seeing for appreciation in Zanesville? That cash flow is not as common here in Columbus, but our appreciation has been amazing.

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Tom Ott
Equity Raiser and Turnkey Provider · Cleveland, OH · Member since 2016 · 4k+ posts · 1k+ votes
6y
Cleveland can dip that low, but be prepared to do some renovations! I would say make sure you know some good contractors out here or you may get stuck. A renovated property can be about $85k-$110k if it is found in the suburbs. Good luck to you!
1 Reply
Aimee Parker
Zanesville, OH · Member since 2020 · 18 posts · 21 votes
6y
Hi Remington (love that name by the way). I am shocked at the appreciation within this past year in and around the Zanesville area. I think there are several factors: crime is low, very limited choices for buyers (just not a lot for sale, as people stay put), it's an easy commute to the Columbus area, it's much more affordable, etc. As an example, we bought a property for $149K last year. A home is in contract about 10 houses away for $153K, and it has NO rear yard, no pool, no fence, no detached garage, not nearly as much finished SF, all things in the one we purchased). I was shocked at what this new one is selling for. Again, people want certain areas and/or school districts, and jump at the chance to purchase. With rates as good as they are, and our economy here holds steady (again, lots of commuters to Columbus, which you know is ever booming). I would be throwing a blind dart to give you an exact figure on appreciation. That price point $50-75K to purchase, with $650-$900 rents all day long in this area. As I mentioned, I spent 20+ years in Columbus. As far as buy and hold strategies go, this area is a no brainer for rental cash cows if a property hits the market to snatch up!

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