Hello from Whittier

15 Replies

Why do you want $50k houses.. What attracts you to that asset? Is it the tenant you will get? The location? The "hands off" passive income? I would stay away unless you come by a screaming deal. I would look up Ben Leybovich's blog post(s) on the subject (the subject being PIGS)

Anyways, feel free to reach out if you want to know anything about the Wisconsin market (at least my area)

@Frank Eimiller There are many different business plans when it comes to rentals. I purchase my rentals usually under 30-35k rehabbed, its the plan that I created. Because I choose to purchase a home for 20- 25k, drop in 10k and its real value is now 70-80k. Explain to me how this is a bad business plan. I understand you have read many articles regarding real estate, but until you actually purchase one your only preaching someone else's story.

 Keep in mind i have built a multi million dollar portfolio buying these so called PIGS in your own market.  And will continue to buy these PIGS, while other investors choose to pay more and get lower margins. I don't not agree with your above advice at all !!!

Surely you wouldn't recommend someone to come into our market and buy those properties and try to manage them from across the country, even with PM it has disaster written all over it... yikes 

I've walked through a dozen "PIGS" in the last few weeks.. If dealing with that class of tenant in certain areas.. No thanks. That's not power. That is another job. 

Chad you don't own "pigs"lol. I'm referring to the cheap stuff on the MLS for 50K.. I see your pics, definitely not the type of asset O.P. will snag for 50k. Give yourself more credit, man.

I do a similar program to @Chad Nagel i focus on SFRs in Northern WI,  Keep in mind Both Chad and I "Can" swing the hammer, and have, hiring things out will generally double the rehab or more.  @Jesse Carreon it all depends on the quality of tenant, quality of property and return you are looking for, $50K MLS deal in most of WI are in need of a lot of work, but some of us never pay retail, its tough to be a "hands off" landlord, Good Luck!

@Frank Eimiller I just went through the "pigs" post you recommended. It appears to me that some "pro's" decided to move on from the low end housing. but I gather that not all 30-50k homes fit your description of "pigs". I must say though. My perception of housing prices and neighborhoods is affected by the outrageous prices here in California. You would probably consider my house a "pig". 

haha I agree with you and I'm by no means and expert.. I just think it's a dangerous idea unless you really get boots on the ground and have a really strong property management team in place 

@Jesse Carreon

Welcome. Good plan, I have lot of buddies buying out of state. Fill in the foundation below.

Check out the Start Here page http://www.biggerpockets.com/starthere

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Locate and attend 3 different local REIA club meetings great place to meet people gather resources and info. Here you will meet wholesalers who provide deals and rehabbers (cash buyers). You can Google to locate them and go to meetup.com

Two Great reads, I bought both J. Scott The Book on Flipping Houses, The Book on Estimating ReHab Costs http://www.biggerpockets.com/flippingbook

Download BP’s newest book here some good due diligence in Chapter 10. Real Estate Rewind Starting over

http://www.biggerpockets.com/files/user/brandonatbp/file/real-estate-rewind-a-biggerpockets-community-book

Good Luck

Paul 

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