The best market for 50k SFR

[David O.]

Hello BP:

I am curious what your thoughts are on what markets will a $50k investment command $1,000 rents? I imagine it is going to be a combination of picking a house up for 35-40k and putting 10-15k into rehab.

I am trying to figure out whether to adjust my expectations on returns. It seems like I keep analyzing deals, they start off looking like the 50% rule is going to work and I would make 11-12% but when I start digging in and really going line for line on expenses I keep getting down to 8-9%.

[Jonathan H.]

My guess would be anywhere in the rust belt - the further south (more moderate weather) the better.

I have personally began looking into certion regions of Ohio in particular. Not much room for appreciation, but they do provide very strong cash flow.