Anyone out there specializing in under 30k properties?

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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Nathan Duncan
Investor · Blackwell, OK · Member since 2014 · 52 posts · 17 votes
11y
I'm game. Count me in.
1 Reply
Derrick Jordan
Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
11y
BP- closed on my first property on yesterday. In Atlanta 19k 3\1 1920 home decent shape. Im projecting 19k in rehab. 690 to 750 rent excited
6 Reply
Darrin Robinson
Real Estate Professional · Atlanta, GA · Member since 2015 · 5 posts · 0 votes
11y
yes ha e properties call Darrin 770-334-1689
0 Reply
Steven Sample
Duplex Investor · Coolidge, AZ · Member since 2013 · 34 posts · 8 votes
11y
Congratulations Derrick
0 Reply
Steven Sample
Duplex Investor · Coolidge, AZ · Member since 2013 · 34 posts · 8 votes
11y
Congratulations Derrick
0 Reply
Steven Sample
Duplex Investor · Coolidge, AZ · Member since 2013 · 34 posts · 8 votes
11y
Originally posted by @Derrick Jordan:

BP- closed on my first property on yesterday. In Atlanta 19k 3\1 1920 home decent shape. Im projecting 19k in rehab. 690 to 750 rent excited
Congrats Derrick....that is great what your doing. Keep up the good work.
0 Reply
Andrey Y.
Specialist · Honolulu, HI · Member since 2014 · 1k+ posts · 1k+ votes
11y
Originally posted by @Ben Stout:

Hey dudes,
I've enjoyed reading all 15 pages of this convo! I think I represent a group that hasn't been heard from yet:
I started in properties around the $100k mark... and gravitated toward this market... and these are the only type of properties I'm super interested in anymore. I guess that runs completely contrary to what a lot of people feel. Let me discuss why:
1.) The properties I go for tend to have awesome features like Art Deco style built-in bookshelves, hardwood floors which are very cheap to maintain and keep looking good, higher grade building materials, and overall better craftsmanship. My first house was a cookie-cutter track home and it has had numerous problems despite my paying entirely too much. Older homes often times have more character and are in neighborhoods with other cool, older homes. Call me crazy, but I just think claw-foot bathtubs and high ceilings are awesome. Fortunately many tenants agree.
2.) Bang for the buck. @David Beard Yes, I've been doing this for well over 5 years. The ROI is insane when compared to my more expensive properties. Proper tenant screening and regular maintenance alleviate 99% of my problems.
3.) Depreciation recapture. If you're going to 1031 exchange your properties later on down the road, it's easy to point towards depreciation as a major part of your strategy. If you are buying lower-end houses, you may find that you prefer to not have as much depreciation recapture to deal with at a later point. Higher end financed houses with a lot of depreciation I consider to be almost doubly leveraged.
4.) Carrying costs. I love not having to fret about vacancies in my low-tax, low-cost insurance, high-demand rental market.
5.) Free money. The more astute BPers get into hard-money loans, big dollar deals, etc. I do a lot of small deals. For example, I bought a house for $25k with an ARV of $60k. The bathroom floor had fallen through. I had it up and running for $30k, refinanced it for $40k, took the $10k tax/interest free and the house still cash flows $460 a month plus prinicipal of $50/month (increasing month to month of course.) I like these kinds of setups.
6.) Despite being able to sometimes work deals like #5, I hate dealing with financing.
Ben
Interest free? When you refinance anything you have to pay principle and interest for the life of the loan. So in any sense, that $10k isn't interest free.
0 Reply
Ben Stout
Real Estate Investor · Pensacola, FL · Member since 2012 · 136 posts · 83 votes
11y
@Andrey Y. Very true. My mistake.
0 Reply
Pyrrha Rivers
Investor · Yokosuka, Japan · Member since 2014 · 631 posts · 184 votes
11y
Congratulations @Derrick Jordan!
0 Reply
Derrick Jordan
Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
11y
thank you. Does anyone know good contractors that can help me rehab my first purchase that are not going to kill my pockets
0 Reply
Frankie Woods
Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
11y
Congrats @Derrick Jordan!
1 Reply
Pyrrha Rivers
Investor · Yokosuka, Japan · Member since 2014 · 631 posts · 184 votes
11y
Now that's an area to thread very lightly in and be very, very diligent and cautious. I asked for contractor recommendations and hopefully you will have better response than I did. After not receiving any recommendations, which I understand. People who are busy don't want to give out their good contractor contacts because they need them available to them.
That being said, be aware that some people do present themselves very well, provide references and are very convincing and it's only after you give them the work that you discover it was all smoke and mirrors. I don't have one to recommend but I do want o caution you not to work with Martin Manning. I did and he created a huge mess I am still working on cleaning up. He is very personable, a veteran and someone I felt comfortable with. don't do it! Here is his web site http://www.myhousemademecash.com/
0 Reply
Derrick Jordan
Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
11y
thanks@pyrrha
0 Reply
Lisa Phillips
Real Estate Investor · Arlington, VA · Member since 2012 · 302 posts · 277 votes
11y
Just found this.
The misinformation campaign continues...
Don't Buy $30,000 pigs in OH
Im just like - still? Its a choice, but just because you dont have the know how or "wiring" to do it, doesnt mean its wrong - it just means it not for you!
Rant Over.
Lisa
3 Reply
Jack Butala
Los Angeles, CA · Member since 2014 · 2k+ posts · 515 votes
11y
We have been buying properties for 500 - 8000 since 1999. 15,000+ properties so far.
I love this market and there never seems to be a shortage of sellers...
4 Reply
Karen Musselman
Mohrsville, PA · Member since 2015 · 57 posts · 10 votes
11y
This is an encouraging thread!!!
0 Reply
Veronica De Los Santos
Real Estate Investor · Hollywood, FL · Member since 2015 · 6 posts · 4 votes
11y
Hi everyone!! We are from Argentina and we want to invest in USA in properties under 30k and rehab/repair ourselves ( my husband is very handy and can do plumbing, electrical, etc). We are really "newbies". I have been searching and I can't find any realtor willing to help you if it is not a property above 100k.
Ultimately, our goal is to obtain an E2 visa and move to USA
I would appreciate some advice.
Kind regards!
2 Reply
Dawn AnastasiPro Member
Rental Property Investor · Milwaukee, WI · Member since 2013 · 6k+ posts · 4k+ votes
11y
@Veronica De Los Santos to where in the USA do you want to move?
Podcast Guest on Show #29
1 Reply
Barbara G.
Hartsdale, NY · Member since 2015 · 874 posts · 218 votes
11y
Well how are you starting this?
You have the people
No what?
0 Reply
Veronica De Los Santos
Real Estate Investor · Hollywood, FL · Member since 2015 · 6 posts · 4 votes
11y
Hi! We are probably going to Florida as it is the state we know and we`d been there for vacations many times. But we have some friends in Texas, in Arkansas and Chicago so those are options too. Investing in Argentina is not an option. Economy and governors in our country are really bad. And after having a baby we realized we prefer to capitalize our saving and invest in something that can even in a long term will be better. But this is a new market for us and we need to know the basics before we start! BTW Dawn, loved your signature quote!
0 Reply
Douglas SkipworthBusiness Member
Rental Property Investor · Memphis, TN · Member since 2014 · 1k+ posts · 1k+ votes
11y
Hello, Veronica.
I know some people who can help you. I will send you a PM now.
Best regards,
Investor's Guide to Memphis Real Estate
View Page
1 Reply
Derrick Jordan
Real Estate Consultant · Atlanta, GA · Member since 2012 · 43 posts · 21 votes
11y
im in Atlanta
0 Reply
Pyrrha Rivers
Investor · Yokosuka, Japan · Member since 2014 · 631 posts · 184 votes
11y
Bienvenida Veronica!
1 Reply
Kyle Wells
Real Estate Investor · Acworth, GA · Member since 2015 · 54 posts · 3 votes
11y
Gotta love The ~(+\-)30k price point for wholesaling here in the Atlanta, Georgia area. My contact information is in the signature if anyone wants to see what new inv is available.
1 Reply
Richard Fields
HVAC mechanic · Philadelphia, PA · Member since 2015 · 241 posts · 57 votes
11y
Originally posted by @Brant Richardson:

Check out podcast #54 with Lisa Phillips. If I lived in an area with properties in the 30k range I would be doing it. Those properties tend to need more attention from landlords so as an out of state investor I'm going with properties a little higher priced.
Where would I find this podcast?
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