Anyone out there specializing in under 30k properties?

Innovative Strategies
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Anyone out there specializing in under 30k properties?

Douglas B.
Buffalo, NY · Member since 2014 · 82 posts · 75 votes

I'm looking to form a networking group of people who specialize in under 30k properties for cash flow. I propose we share ideas to help each other maximize our success!

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Elizabeth S.
Real Estate Investor · Fort Wayne, IN · Member since 2013 · 168 posts · 78 votes
12y

I buy houses in the $18,000-$23,000 range, typically put $3,000-$5,000 in them and then rent them for $650 a month. @Matt R. is right about the roof and furnace, they are profit delayers.

The key is to know the area or work with someone who does.

There is more to investing in any house than just working the numbers ahead of time to see if it will have positive cash flow and those are the factors that will kill you.

1. Contractors that you can trust, that do the job correctly and go above and beyond for you since you're not around.

2. A property manager who can rent the house to good people and make sure they are holding up their end of the contract.

People who buy expensive houses have the same issues, their tenants just drive nicer cars. It's all a process, just jump in and learn the lessons good and bad.

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  • Rolanda Eldridge
    Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
    12y

    It can be done in Alabama.  Of course, you need to perform appropriate due diligence..

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y
    Originally posted by @Engelo Rumora:

    @Ramon Jenkins@Pyrrha Rivers 

    Thanks guys and much appreciated.

    Just about to call my contact that is direct to the fund.

    It is a long shot but its all about the numbers. I am sure I will get 1 out of 100 :)

    Have a great day.

    Hey guys,

    Here is an update for you.

    Just waiting to close on this one.

    I have been chasing this deal for 4 months now and was convinced by a very successful fellow investor to pay the "premium" and make a quick $30,000.

    Wrapped it up for $34,000. Needs a decent $13,000 - $15,000 renovation.

    Walk it out the door price is between $80,000 - $85,000.

    If I want to sit on it for 2-3 months could easily push a mid $90,000 sale.

    Solid A class area.

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y
    Originally posted by @Tony H.:

    Hi and wow,

    Where is the US can you get decent sub 30K properties?  Detroit?  Be careful!!!!

    Hi Tony,

    All around the Midwest.

    There are some amazing opportunities to be found.

    Thanks and have a great day.

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    0Reply
  • Pyrrha Rivers
    Investor · Yokosuka, Japan · Member since 2014 · 631 posts · 184 votes
    12y

    @Engelo Rumora Congratulations! That's an awesome deal, well worth the wait. I was wondering what ever happened with it. Great inspiration to be patient, persistent and take massive action. I'm learning so much :)

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y
    Originally posted by @Pyrrha Rivers:

    @Engelo Rumora Congratulations! That's an awesome deal, well worth the wait. I was wondering what ever happened with it. Great inspiration to be patient, persistent and take massive action. I'm learning so much :)

    Thanks Pyrrha,

    Much appreciated.

    Have a great day.

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    0Reply
  • Ramon Jenkins
    Real Estate Agent · Milwaukee County, WI · Member since 2009 · 3k+ posts · 525 votes
    12y

    Congrats

    0Reply
  • Rolanda Eldridge
    Investor/Realtor · Hoover, AL · Member since 2010 · 1k+ posts · 459 votes
    12y

    Nice looking house and a great price!  Keep us posted!

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y

    Thanks @Ramon Jenkins and @Rolanda Eldridge 

    Should be starting rehab shortly and will post once all is complete.

    Thanks and have a great day.

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    0Reply
  • Richelle T.
    Rental Property Investor · Columbus, OH · Member since 2014 · 340 posts · 111 votes
    12y

    @Angelique F. 

    I'm glad there's no sink hole... whew!

    @Pyrrha Rivers 

    Living abroad and investing is hard. I applaud you for actually taking action so far away. I was overseas in a 2010 (an epic year to be an investor) and I sat it out. Kudos to you! Maybe partnering with someone local to Atlanta would be helpful to help you move along faster, especially since your daughter is helping.

    @Engelo Rumora 

    Congratulations on another deal!! Do you live in Toledo? I think I remember you living elsewhere? I'm coming up to Toledo in a few weeks and would love to meet a local investor to learn about about the city.

    0Reply
  • Pyrrha Rivers
    Investor · Yokosuka, Japan · Member since 2014 · 631 posts · 184 votes
    12y

    @Richelle T., investor from Canada, inviting us out to dinner while we were both in GA and was kind enough to include my daughter. His wife and daughter were with him and the conversation was so charged with energy and enthusiasm that it sparked an interest I did not expect to see in my daughter this early in my process, but it has been absolutely wonderful.

    0Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y
    Originally posted by @Richelle T.:

    @Angelique F. 

    I'm glad there's no sink hole... whew!

    @Pyrrha Rivers 

    Living abroad and investing is hard. I applaud you for actually taking action so far away. I was overseas in a 2010 (an epic year to be an investor) and I sat it out. Kudos to you! Maybe partnering with someone local to Atlanta would be helpful to help you move along faster, especially since your daughter is helping.

    @Engelo Rumora 

    Congratulations on another deal!! Do you live in Toledo? I think I remember you living elsewhere? I'm coming up to Toledo in a few weeks and would love to meet a local investor to learn about about the city.

    Hi Richelle,

    Thanks for your post.

    Yes, have been living in Toledo for the past 6 months.

    Feel free to message me with a time and date you will be here. It would be a pleasure catching up over coffee and sharing my experience of Toledo.

    I see that you are in Columbus. I travel regularly to Columbus and Dayton also.

    Thanks and have a great day.

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    0Reply
  • Angelique F.
    Rental Property Investor · Atlanta GA · Member since 2013 · 122 posts · 83 votes
    12y

    Engelo, beautiful property and Congrats!

    1Reply
  • Engelo RumoraBusiness Member
    Investor · Toledo, OH · Member since 2013 · 4k+ posts · 2k+ votes
    12y
    Originally posted by @Angelique F.:

    Engelo, beautiful property and Congrats!

    Thanks Angelique,

    Much appreciated.

    Have a great day.

    Podcast Guest on Show #89
    Oz Realty4.5367 Reviews
    WebsiteView Page
    0Reply
  • Edward Briley
    None · Virginia Beach, VA · Member since 2014 · 126 posts · 50 votes
    12y

    Wow, I cannot even believe this post.  How to find sub-$30,000 properties?  They are all over.   Listen in my opinion, if you can pick up dirt (dirt being a lot) with a home on it that is usable for a very reasonable price is a no brainer.   I have even been thinking of Detroit, because of sub $1000 homes.   People listen, until investors get involved cleaning up communities - property values will decline.  Nothing is wrong about buying a property in a bad community, fixing it up, flipping it or renting it out.  Now with this being said, I make sure that if something would happen to the property, that I would be able to rebuild.  Some older properties you may not be able to do it, because of new laws.   In the past when a young couple was looking for a home, the only thing they could afford was a so-called, dilapidated dwelling.  Now a young couple expects to move into a completely rehabbed home is their first property, and people wonder why housing values are not increasing?  Listen Investors, it is up to you and I to rebuild these neighborhoods, that is our job.  The housing market has never been better for someone that has saved their own money to buy a house for cash.  Most people that have saved their money also have decent credit to flip these homes.  Everyday I get up and scan all of the housing sites find homes for less than $30,000.  I look at the property and figure out what it will cost to get it livable, or resell-able.    Many properties I have to refuse or low-ball because it will just take too much money to rehab them, but if I can get it a a reasonable enough price I will buy it.  Many slumlords will buy them, and rent them.  I am not a slumlord, and for this reason realtor's don't like dealing with me, when I am the kind of investor that makes them money in the long run.  Very few have ever made money by buying the best home in a community and letting it dilapidate.   If you are that kind of investor, you are not an investor you are just greedy. 

    5Reply
  • Angelique F.
    Rental Property Investor · Atlanta GA · Member since 2013 · 122 posts · 83 votes
    12y

    Thank you Edward for you post.  You are right, it is up to us to rebuild these communities and why not.  Everybody wins.  Some of these communities like the one I've just invested in, have neighbors who have been there for years and years and they are just sick about what has happened to their community.  They are happy to see SOME investors come in and rehab these properties.  However, they don't want to see investors come in and become slumlords.  My new neighbors are people who take care of their properties the best they can and that pride shows.  I've already told them they don't have to worry about how I plan to care for this home, and boy you could see the worry leave their faces.  I will be particular about finding tenants who share that pride.  I am not all about the money I mean at this price point you really can't be.  It's important to me to take these homes and turn them into something my tenants as well as the neighbors will be proud of, one property at a time.  I'm excited and if it weren't for these cheaper properties, I wouldn't be able to invest and I'm going to do my best to help beautify these neighborhoods.

    4Reply
  • Richelle T.
    Rental Property Investor · Columbus, OH · Member since 2014 · 340 posts · 111 votes
    12y

    @Edward Briley 

    @Angelique F. 

    I couldn't agree more! It feels good to help transform or maintain a community that could easily slip to being less desirable.

    1Reply
  • Rah-sheen Blalock
    Brooklyn, NY · Member since 2013 · 41 posts · 9 votes
    12y

    anyone with financing opportunities for properties at this valuation. 

    0Reply
  • Chad S.
    Rochester, MI · Member since 2014 · 88 posts · 50 votes
    12y

    My next property might be a $30,000 fixer upper. The way I see it, If I buy a fixer upper and remodel the whole house from top to bottom, then I should not have any major maintenance issues to deal with going forward.

    3Reply
  • Edward Briley
    None · Virginia Beach, VA · Member since 2014 · 126 posts · 50 votes
    12y

    @Angelique F. 

    @Richelle T. 

    I just wanted to let you know that I have a property that I am waiting to close now.  I am going to try something different with this property and see what offers I get.  

    While the work is being performed on the property, I am going to put a "For Sale by Owner" sign in the front yard, and ask for a profit above what I will put into it.  (The asking price will be $80,000).  I not only work with a real-estate, but also with a mortgage broker.  I am going to have the exact cost of what the payment will be on the house in different scenarios, and make a flyer for the home just for that.  On that same flyer I am going to put, what I'll be asking for rent if it is not purchased by completion.  Rent will be about double of the payment.  When I talk to someone they may be interested in purchasing it, I will turn them over to the Real-estate agent. 

    Most younger people do not realize that it is possible to buy a home with no credit, what-so-ever.  What kill most younger buyers, is buying something on credit, that is small and not paying for it, or not paying on time.  It is still possible to this day, for an 18 year old to buy a home, providing they have proof of employment for the last 2 years, and make enough at present to afford the payment.  I try to convince high school kids of this all of the time, but they had rather have a car, than a home.  They don't realize after they buy the home, they can have both.  Many want $200,000 or above cost homes, in which most cannot afford, or will ever be able to afford.  That is just fact.  Just look at the foreclosures. 

    The neighbors are so happy that what I will be doing to this home, the women next door started crying.  Hope I can get it closed this week, and when I do I will respond with everything. In my opinion it should be closed by now, but I can't rush the title company but so much.  I hate going through this, the bank approved the contract, and I have the cash -  Let's Close Already!!! 

    1Reply
  • Edward Briley
    None · Virginia Beach, VA · Member since 2014 · 126 posts · 50 votes
    12y

    Anyone out there specializing in under 30k properties?

    Listen, don't call yourself an investor if you don't know where to look or how to do it.

    The Government websites are loaded with properties for less than $100,000 all of the time.  An investor knows what it cost to rehab a property to sell or rent after its completion.  As an investor, don't even look at a property until you know these things.   Just because the Government, bank or other entity is asking the moon, does not mean they will not take less.  You have to be fair at the same time.  30K properties are abundant,  real estate agents that will show you these properties are not. 

    1Reply
  • Edward Briley
    None · Virginia Beach, VA · Member since 2014 · 126 posts · 50 votes
    12y
    Originally posted by @Chad S.:

    My next property might be a $30,000 fixer upper. The way I see it, If I buy a fixer upper and remodel the whole house from top to bottom, then I should not have any major maintenance issues to deal with going forward.

     That is the way I look at it also, and has paid off!!!

    0Reply
  • Richelle T.
    Rental Property Investor · Columbus, OH · Member since 2014 · 340 posts · 111 votes
    12y

    @Edward Briley 

    Great idea on owner financing! I would suggest getting to know the neighbors as well. One neighbor offered to purchase the house I got for $10k more than I had it under contract for - as is. The neighbors wanted their family to move closer. I thought about it for a while but decided I wanted the slow dime as opposed to a fast nickel.

    I ended up renting it to the nephew of another neighbor. It seems to me that there can be strong family ties in these neighborhoods that easily support what you/we are trying to do. I found that very encouraging :-)

    3Reply
  • Alvin Neal
    Realtor · Detroit, MI · Member since 2013 · 278 posts · 114 votes
    12y

    @Douglas B.

    There are some great under $30K properties in Detroit. You just have to get one on a great block that has one vacancy.

    2Reply
  • Lisa Phillips
    Real Estate Investor · Arlington, VA · Member since 2012 · 300 posts · 277 votes
    12y

    @Angelique F.

    @Richelle T.

    @Edward Briley

    @Pyrrha Rivers 
    @Edward Briley

    Wow!!! Oh my goodness! I sorta teared up at the truth you guys started speaking. Yes, Yes, YES! We DO make a difference if we are responsible, AND our eyes are wide open. With this insight and knowledge, its a very win/win for every single person, as long as we treat the people in that neighborhood, our tenants, and are assets with utmost respect!

    I love it!!! You're words add to the platform that I now advocate (I see a vision where my "middle class army" of regular people learn not only how to build wealth, how to transform their businesses and the communities they do business in! To see you all making it happen, and experiencing that feeling of success, validates so many of the hours I put into trying to make people see, not with naivete, but with a savvy business sense and a feeling of responsibility. Im going to keep reading this thread, but your words speak truth to power, and we can really make a difference in this world. A SERIOUS, heartfelt difference. Much success to every single one of you!

    2Reply
  • Robert EllisBusiness Member
    Developer · Miami, FL · Member since 2014 · 3k+ posts · 1k+ votes
    12y

    @Engelo Rumora let me know what zips and I can keep an eye out for you. you can message me if you want. I'm from Toledo too!

    [email protected]786-494-6766
    Section 8 Launch52 Reviews
    WebsiteView Page
    0Reply
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