Where to buy $12,000 houses?

Question

I have seen other investors post that they have bought $12,000 houses that they rent for $600 a month. This sounds too good to be true. Where are houses like this? How much rehab work is needed? The rent completely pays for the house in 20 months?! The areas I invest in, you couldn't get a 60X100 lot for $12,000. The rental houses I own, I couldn't install a wooden deck for that price. A completely stripped out, 1200 square foot house that is 50 years old would still sell for 50K to 100K in So Cal.

So is there a niche out there that I am unaware of?

Steve Sparks · Answer

I could find you pretty much as many of these deals as you want in cincinnati. Buy for 7 to 15..10 to 20 in rehab and rent for 600 and above

Jason Trepins · Answer

Rich,
you're looking for as many rentals as possible, or a multi unit or 1 single rental or just flipping and getting out?

just curious

jason

Eddie Ziv · Answer

Rich,
I can sell you one of mine. 2/1 (Third bedroom was converted from an enclosed den) Has been rehabbed. Section 8 renter in place with a contract until October and a PM as well. New roof, new AC, some new plumbing. Bring $650 a month.
I will sell it to you for $36,000. - Birmingham, AL. No houses in the neighbourhood are selling for less then $42,000.

Ty Hines · Answer

Rich give me a chance to put something solid together and I will pm you with all the details.

Rich Weese · Answer

I'm looking at getting 1200 per month for a 60K property. Do any of you have something better to sell me? This is section 8 and managed for 12 months included. Rich.

Ty Hines · Answer

Mike I live and invest in the Atlanta area and currently there are plenty of houses for sale in this price range. I did a QUICK search and found about 120 homes under $20,000 in the Atlanta metropolitan area. And the median rent for a 3 bed is well above $600 a month. If you are interested in investing in the Atlanta area I will be happy to partner on some deals. I have lived in the Atlanta area most of my life and know the areas pretty well. Email address is in signature.

Rich Weese · Answer

Ty- What can I net on 100K in your area with you overseeing and finding the homes? I want a completely turnkey operation. Rich

p.s. Others are also invited to give me a  quote

Jason Trepins · Answer

There are plenty available in west michigan. Rental market is still strong.
Total invested(including any repairs) into a deal(watching daily) can be between 15-20K and can rent from $500 on up.

Tom C · Answer

You can buy plenty in Cleveland and Youngstown, but your not going to get $600 a month, more like $375 to $400 and rehabs will range from $5 to $10K.

Curt Davis · Answer

Mike,
          
          I wholesale in Memphis and prices like this are fairly realistic. You are looking closer to $20,000 all in to get $600 per month in rent.