Thanks to this BP community that I can get guidance from so awesome community members, Awesome forum, and platform.
So what I am trying to start in the real estate investment and trying simple step one at a time so that I can learn while investing
To understand completely the investing, buying, renting, rehab, refinance, and property management process, I would like to start on a small scale. Some of the community members suggested trying the Memphis market
What I am looking for is the buy sub 50k property with an occupied tenant with a minimum rent of 600. I want to finance the property as well to get my feet wet so that I can understanding the mortgage process.
Since I am out of state investor I am looking for suggestions from community members who have successfully done this before?
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
5y
I would not recommend buying properties in this price range. Also most lenders will have a minimum loan amount requirement and after you put 20% down on a 50k acquisition it is unlikely that you will hit the banks minimum loan amount requirement. To get your feet wet you need to buy a property that will perform and give you confidence in the strategy and the market. These lower priced properties in more challenging areas should be reserved for locals who self manage or investors that have experience and understand the low rent investment strategy. As a newer investor looking to get your feet wet, a property like this may come with unique challenges that might turn you completely off to investing!
Investor · Memphis, TN · Member since 2013 · 741 posts · 845 votes
5y
I would not recommend buying properties in this price range. Also most lenders will have a minimum loan amount requirement and after you put 20% down on a 50k acquisition it is unlikely that you will hit the banks minimum loan amount requirement. To get your feet wet you need to buy a property that will perform and give you confidence in the strategy and the market. These lower priced properties in more challenging areas should be reserved for locals who self manage or investors that have experience and understand the low rent investment strategy. As a newer investor looking to get your feet wet, a property like this may come with unique challenges that might turn you completely off to investing!
Real Estate Agent · Memphis, TN · Member since 2019 · 261 posts · 253 votes
5y
I think that this price range is something you can work into over time as you are more comfortable choosing tenants, managing your manager, getting lender partners, etc... but I agree with Stephen that this is a tough way to start. It can definitely be done but you have to vet your property well and really understand how to run these lower-end rentals. I usually recommend to my OoS clients that they keep their rents a minimum of $650 or so for SFR and $550+ for multi-family - especially when newer, but ymmv.