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!
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.
Syracuse, NY · Member since 2014 · 73 posts · 22 votes
10y
@Anthony Johnson I just moved to LA from Syracuse. I own a 2unit there, bought it for a shade under 55k. There's many 2 units in the city that can go in the 40k range (though the neighborhoods can be a little rough - it depends). Let me know if you'd like to talk a bit more.
@Audra De Falco I'm from the NYC area too. Holla at me if you want.
Hey I have access to many properties in the 30k range in different counties in Ga. I graduated from GA Southern University which is near Pooler. Hopefully we partner in many deals.
Austin, TX · Member since 2016 · 4 posts · 4 votes
10y
@Greg H. Unfortunately, I do realize this is not really possible in the Austin area (though I would love it, would be a great chance to do gain a lot of DIY experience on weekends). I hadn't even really considered Texas. I am thinking smaller and upcoming cities or college towns. Would def be interested in Texas though.
Investor · England, AR · Member since 2015 · 53 posts · 20 votes
10y
I've invested in 30K properties via county auctions. Depending the on the area the legal stuff may be more complicated but it can still be rewarding. Financing: Local banks and local city offices can be very helpful when you're trying to provide quality housing in a low income area. Before you apply, go into a local bank introduce yourself and ask to speak to a loan officer to get a feel of how the bank will view your application for funding purchase and rehab of a 30K property. If you get the wrong feeling about it, don't apply. Some people to contact in an area: local police or sheriff, the Mayor or the city council/staff, HUD county office (they know which banks will finance), local established business owners, local Pastors and church officials, anyone in the area of the property with a nice house. Often these people sit on committees that are influential in the city (even on loan committees or boards of banks). Suggestion: Once you get any kind of funding going (credit cards/HELOCS/quickmoney lenders) and you've purchased the property, clean up the outside first! This will impress upon the neighbors and "nosy" drivers that you're doing something to improve the area. As inquiries come, let people know that you are aiming to improve the community and are "ticky" about who you rent to. Ask neighbors if they know anybody who may be interested. Gossip travels fast in nested communities so put up a "redevelopment" sign, so people in the area can help you look after your property and your interests. This strategy has worked for me, and one of the first private lenders who came to my rescue was from the neighborhood. So, please don't assume that $30K houses are just slums, the book tells the story, not its cover. Sometimes renters in the low income area need to be taught how to be a good tenant...everyone does not have the patience for walking through the lease, providing checklist sheet for inspections, providing "do's and don't ever" list, giving out property manager's # refrigerator magnet, $25 rent discount coupon for 3 excellent inspections. Disclaimer: I live in the area where my rentals are located and my community has come respect my standard for tenants.
Investor · Lancaster, PA · Member since 2016 · 7 posts · 1 vote
10y
This is great. I will be following this too after just listening to podcast #54. We are gearing up to start buying sub $30K around York County, Pennsylvania. Crunching numbers on lots of SF and multi units and it's looking promising. More entry level than Lancaster.
Real Estate Investor · Arlington, VA · Member since 2012 · 302 posts · 277 votes
10y
Hey all, i've started to see that a lot of good pickings are getting swept up. I usually tell people now a days to be a bit discreet about letting everyone know where the markets are at (loose lips). Anyone seen an uptick of their inventory in the more popular spots being swept up? I know we have.
Investor · Cleveland, OH · Member since 2016 · 25 posts · 4 votes
10y
Am also interested in 30k properties. Currently looking at Ohio. About to close on my first MF property next week. Fingers crossed. Would like to partner with anyone interested. Also lenders are welcome to connect with me. Cheers..
Real Estate Agent · Philadelphia, PA · Member since 2016 · 27 posts · 0 votes
9y
HI everyone , How's everything going in investing im 30k properties?
I would to hear from everyone and share thier experinces . I live in Phildelphia pa and 30k properties are in infested areas. I would like to know if I can profit in those areas.
Rental Property Investor · Independence, MO · Member since 2013 · 92 posts · 37 votes
9y
My favorite SF house: bought for $18,500 cash, put in about 3k in repairs, rents for $775 a month.
Others:
$21k, rents $600/Month
$24k, rents for $625/Month
$26k, rents for $675/month
Key is finding great tenants that want to fix up the place and stay. Have had some issues with tenants, vacancy, and large repairs, late payments, etc.
Definitely doable , but takes super hands on management, and I haven't been able to find any deals like this on the last year... Prices and competition have gone way up.
None · Virginia Beach, VA · Member since 2014 · 126 posts · 50 votes
9y
Let me explain that the best thing you can do is when you look at a sub 30 home, is the location. Forget about the house on it and what kind of work that needs to be completed. The value is in the location of the property. What I did is to first look at the location, and next worry about the cost to do the flip. It is difficult to buy land for less than 30 in most parts of the country, even if it is vacant land. Again the value is actually in the location, not the building. These are things you have to look at before deciding to make a purchase. If you own the property outright, it is easy to get a loan to do the flip. Just don't go overboard on the flip, but make sure it looks nice and done correctly.
I am sure many of you know this, but to buy a piece of rural land will cost you at least 30 thousand to prepare it for a home. In many places, just the well and septic will cost that.
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Douglas B. when considering low-end property, be sure to develop a good relationship with property manager(s) and or contractor(s)/Handymen. Especially if your going to be investing from afar. But if your living in Buffalo upstate new york is ripe for sub 30K deals. Best of luck!
Waianae, HI · Member since 2016 · 111 posts · 47 votes
9y
Aloha all
I know the thread is now 3 years old however, I am interested in properties at this price range as well. I have been researching for months yet having problems going through the "full swing" as I live in Hawaii and find it difficult to build a team where everything is 2 to 6 thousand miles away. Any assistance or this matter or adding me to connection would be great. I have listened to many of @Lisa Phillips you tube channel(subcribed listener<) which has been inspirational and led me to BP. I will be attending a group meeting next week in Hawai'i but even then I am certain to have any cash flow we (here) have to look at investing out of state. Median price home in Hawai'i is now 750k.
I see this is a 3 year old thread. Just wondering if sub 30k properties are still available? I am looking at Cleveland areas.. Thanks
Cleveland has seen a steady increase in price over the last couple years. In today's market you are looking at a minimum of $35k-$40k to get into a single in a C area with rents in the $700-$799 range. $50k + for anything renting above $800
If you look in a C-, D or F area you will see some single family homes that are tenanted and rent for around $550-$650 in the sub $30k price point.
Rental Property Investor · Broken Arrow, OK · Member since 2016 · 1k+ posts · 1k+ votes
9y
I primarily only invest in properties below $30K-$50K and have had a lot of success doing this. The key is these properties only work if you have cash. Most people do not deal with them because its near impossible to get financing. But if you have the cash, you can hit some home runs if you do your research. I flipped 4 properties these past two months that I purchased for under $30K and averaged 116% return on my money. Purchased two more this week and expect to make at least 50%+ return on those as well. I look at it this way, you can buy ONE $250K home or you can buy FIVE-EIGHT <$30K-$50K homes. Its the same money and if your deals are right, you can make just as good returns and not have all your eggs in one deal.
Investor · Cleveland, OH · Member since 2016 · 25 posts · 4 votes
9y
@James Wise Many thanks James. I am already subscribed and currently following some of your property listings. I am still researching but hope to properly get into the market as soon as my finances are right.