Considering purchasing a lot of rentals

[Chase Gochnauer]

Hello all,

I own a small business with 18 employees in a real estate related field. I'm very familiar with buying/selling real estate. I've dabbled in it, flipped 5-8 houses, been a real estate agent, and had a couple of rentals over the years. I'm considering buying, rehabbing, renting properties as a diversification to our main business. I would be hiring a full time position to help manage the rehab of these properties, and look for a third party management company to do the management. I will have a good line of credit available to purchase a lot of properties, considering the neighborhood of 2/month. I like the class C type property area. I've found I can consistently buy ~$30k properties, rehab for $10k and rent $600-$700. I've seen the discussions on here about that price point of properties. These houses are built in 1920s-1950s, 800-1000 SF 2/1 and 3/1s.

I'm looking to hold and rent to create a different income stream than my primary business. It is doing well, but looking for a little diversification.

Are there any others out there that are purchasing these in more of a "systematic" method like this, or have in house staff to help with purchasing and rehab? I've considered keeping the property management in house and hiring a W-2 employee to help with the management.

Thanks!

[Jay Hinrichs]

@Chase Gochnauer 

  I did this and bought 350 of them.  In house is the way to go.. run it like a business with full command and control and you can do well.. Where this model breaks down is when you do not live there and you have to trust others for your income. .C class is high touch and will be as long as you own it.. If you do not touch it it will bite you big time.

Remember you have a tenant pool top of the pool the best renters are not renting your properties.. your getting the bottom of the tenant pool so they always have issues.

below your tenant pool into D and F is just plane suicide to me.

JLH