How hard to find these type properties?

16 Replies

How hard are these type properties to find?

3 or 4 plex

$100 - 150k

With rents of $350-500 dollars

What should I be aiming for price wise and expected rent wise considering I will have roughly $20-30k to put down as a downpayment?

Local realtors would give you this info for free. I would call several in north carolina and see for yourself.

In Los angeles those sort of properties are $100k per unit or more

I actually live and work overseas. So I am open to any area, city, or market. Plan on hiring a pm.

Are you looking for Off Market Properties? Properties that may need to be rehabbed? or Turn Key?

Will be looking for the best deals for optimal ROI. Everything will be fair game.

I am just curious what exactly I should be searching or aiming for and what is reasonable with my budget.

@Ali Boone puts together Turnkey properties for rentals. You may want to hit her up here on Bigger Pockets either for advice or for properties. She writes fairly extensively about rentals (and she's just an awesome lady!) There may be others on here that do the same, but she is a resource to get in touch with.

You can definitely accomplish those numbers, but it depends on how flexible for markets you are. In some, you will even get better than those numbers (all while staying out of the ghetto). Roughly 10-12% cap rates.

For planning, assume 20% down for a loan if you qualify for a US mortgage. Are you a US citizen? If not, no mortgage. At which point you would have to go with private financing which will require 50% down usually. Then add in some extra for closing costs. $100k purchase price would need to be your max if you can get a US mortgage.

Yes I am American. Good to know it's realistic.

What is the best way to find these type properties? Considering i'd be abroad and only back stateside probably for Christmas and summer.

I can find you a few in NC. PM if you're interested...

What is the typical mortgage amount on a 100k loan / 20% down / 30 year note? Safe to say about $600 dollars?

@Medellin Heel

Make sure you watch the insurance and tax really closely. Also the kind of tenant. We bought two properties in Charleston. Great areas tenant base, etc. One problem, taxes work out to be 3x property for investors, insurance are high because it is on the coast and susceptible to weather. Plus don't forget HOA's.

This makes our monthly payment on our 150k house in California less than and our 90k house in Charleston due to differences in taxes, insurance and HOA. So check all the numbers.

Make sure you ask if there is a different rate for investors. If there is ask exactly how much! We learned so much on our first property.

Are we talking about the 4% vs. 6% ratio or whatever it's called?

Originally posted by Elizabeth Colegrove:
@Medellin Heel

Make sure you watch the insurance and tax really closely. Also the kind of tenant. We bought two properties in Charleston. Great areas tenant base, etc. One problem, taxes work out to be 3x property for investors, insurance are high because it is on the coast and susceptible to weather. Plus don't forget HOA's.

This makes our monthly payment on our 150k house in California less than and our 90k house in Charleston due to differences in taxes, insurance and HOA. So check all the numbers.

Make sure you ask if there is a different rate for investors. If there is ask exactly how much! We learned so much on our first property.

How much is your total monthly payment for your 90k Charleston property?

Updated over 4 years ago

Also, how much you put down?

Updated about 4 years ago

Also, how much you put down?

@Jason Merchey

Yes but I found that 4 to 6% is really 1% of market versus 3%. They do a weird system but that is what it works out to. So my 90k house pays $2500 a year in taxes and $900 in insurance. This is for South Carolina.

My Charleston house is on a 15 year loan with HOA it is $950 a month. My rent is $1150.

I put down approx. $23,000 including closing costs

@Medellin Heel

For Californiaa my $163k My insurance is $600 a year and taxes $1800. It rents for $1400 monthly payment $945.

This was a personal houses turned rental. We put $1,000 into the house. That's why I love personal properties turned rentals :)

Elizabeth, something doesn't sound right about your tax bill on your 90k property in Charleston. Look at your tax bill and see what the appraisal # is. I have two properties appraised at $171k and $173k and the non-owner occupied taxes on them are $2,411 and $2,430 respectively. I don't understand how you would have a $2,500 tax bill on a $90k property. Is the county appraising your house way too high?

I'm buying a 3bdrm townhouse on James Island for $85k. I expect to have $100k in it when I've polished it up a bit. My mortgage ($85k) will be about $500/mo.....the hazard ins is $107/mo....Flood ins is $50/mo....and taxes should be about $100/mo....for $757/mo total. I'm expecting $1,100/mo rent maybe more since the rental market is so tight.

@John Semanchuk

John I see a similar tax structure to what Elizabeth is reporting in some areas. I'm guessing its dependent on when the reassessment was conducted some areas have a structure that supports owner occupied is 1x, absentee owner instate is 2x and absentee owner out of state is 3x.

If the reassessment was conducted just before the bubble burst you could have a high property tax on a property that has significantly lost its value.

Just a theory though.


That's why I suggested Elizabeth look at her tax bill for the appraisal #. It might be being assessed on too high an appraisal value. I was assuming Elizabeth was a SC resident but that might be my mistake...

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