I am wondering if you all have a price range in which you try to target for buying investment properties. Would you say there is a dollar amount that you try stay under for each property? I know this is highly dependent on the area in which you are looking but I am just wondering if you have a "magic number"?
This is completely dependant on the exit strategy of choice. If you are going to flip, it depends on your market...and available financing.
If you are going to buy and hold, then you have to figure what the rents are, subtract the taxes, insure., etc... What's left is for you and the loan. So if you subtract your desired Cash Flow from that last number, what's left is how much you can spend per month on a loan...which sets the amount of house you can buy.
For buy and hold, ideally I like to stay under $40k.
My preferred range is between 80k and 140k. Of course, the final decision must be based on numbers, available options and individual objectives as an investor.
I am a buy and hold girl. I buy in class A neighborhoods thing AMAZING schools, highly sought after neighbors crappiest house on the block ;0
I buy short sales and foreclosures. Although mostly all short sales
Charleston $105-$165k (townhouse lower, single family upper
Virginia Beach- $300-$600k (plan on buying a single family or multi family block from the boardwalk with the goal of doing a vacation rental)* something new and only if we get orders back
Varies with the market. In my home town it is from $50K to $100K, in my out of state investing it is from $15K to $30K
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