Buying in low income areas Help.
Guys.
I have 3 homes under contract in low income income areas. I am starting to get cold feet. Prices ranging from $20-31k. Rents in the area are $600-$1000.
I really want to max out BRRRR or Flip the property to generate some liquidity/ cash. I am worried about purchasing these properties with Cash and having my money locked into one or 2 properties.
In this area investors are snatching these houses up for the same price(20-30k). I am worried with the BRRRR method that the appraiser is going to say " well the last 10 houses were sold for 20(example) so that's what yours is worth." Even though I have rehabbed to a nice standard. Meanwhile the houses that are being sold are in poor condition. There are a few homes of nice standard being sold to the working class people and they are averaging between $65-90k, which is what I derive my ARV from.
I know all you seasoned vets out there say to steer clear of these properties bc they become a huge hassle. Right?
I am looking to really start to get some momentum in the cash flow department and these are the best I can find in my area.
Any comments or thoughts would be appreciated for a newb.
Deals Below
1.) $27k
Arv $75k
Rehab $20k
Rents $750 (easy)
2.)$31k
Arv $75k
Rehab $18k
Rents $1000( College students)
3.) $33k
Arv $65k
Rehab $20-25k
Rents $100