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.
Redmond, OR · Member since 2017 · 98 posts · 36 votes
9y
Thank you, @Shawn Ackerman. All my numbers and percentages line up pretty closely with what you've listed (I used 10% for maintenance and 10% for capex).
I'm guessing the rental rates in that particular area are just too low...
Real Estate Entrepreneur · Mid West, East Coast · Member since 2015 · 3k+ posts · 1k+ votes
9y
@Ryan Tuleja Great! always run your numbers conservatively. Give yourself a fudge factor and it will cushion any fall or unexpected cost you may incur. Your on the right track.
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!
Rental Property Investor · Lincoln, NE · Member since 2015 · 24 posts · 5 votes
9y
I worked for an investor who bought/sold 150+ low end properties. I am always available for a call or text to discuss things! I will help with what I can!
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.
Foreclosure Specialist · Las Vegas NV Miami, FL · Member since 2015 · 11 posts · 11 votes
9y
I am a big advocate of low priced properties. I purchase preforeclosure properties directly from the homeowners in several different counties and in 3 different states. This includes Detroit where I have purchased homes that are brick 3 bedrooms, 1 bath, basement and garage for as little as $5K to $10K and needing only $2K to $5K in cosmetic rehab.
There are fewer under $10K deals in Detroit now than there were 5 years ago, however, I still find plenty with solid positive cash flow from section 8 tenants for $15K to $20K including purchase and rehab costs.
I wish there were more areas like this as I have been getting priced out of cash flowing properties in South Beach, and Las Vegas competition has been increasing every year. Luckily metro Detroit is still open with plenty of deals coming up every week.
That is why I am vigilante in aggressively seeking out homeowners who have just gone into preforeclosure.
Rental Property Investor · Corona, CA · Member since 2017 · 18 posts · 16 votes
9y
Steer clear of that price point unless you're willing to manage the property yourself. Margins are too slim to cover incidentals. An eviction or capital expenditure i.e. Roof, water heater, or stolen HVAC system can wipe out gains for years
Steer clear of that price point unless you're willing to manage the property yourself. Margins are too slim to cover incidentals. An eviction or capital expenditure i.e. Roof, water heater, or stolen HVAC system can wipe out gains for years
How is it any different from financing a $250K property with $100-200 positive cash flow ? Those same capital expenditures wiped out gains for years as well
Steer clear of that price point unless you're willing to manage the property yourself. Margins are too slim to cover incidentals. An eviction or capital expenditure i.e. Roof, water heater, or stolen HVAC system can wipe out gains for years
How is it any different from financing a $250K property with $100-200 positive cash flow ? Those same capital expenditures wiped out gains for years as well
That's correct, EXCEPT, $250k properties are more likely to be appreciating each year on average (due to their location), as opposed to the $30k ones. (Otherwise, why aren't they ALREADY worth more than $30k, given the 7 years of recovery we've experienced?) That same reasoning is also applied by those who invest in properties that already NEGATIVELY cash flow. Cheers...
Investor · Canton, GA · Member since 2014 · 727 posts · 500 votes
9y
How frustrating. The app will not allow me to scroll to the end of the thread without crashing before I get there.
Joshua Dorkin
Josh, any way there could be a "jump to end of thread" option added? It is especially an issue on these long sustained threads.
Thanks.
Atlanta, GA · Member since 2011 · 30 posts · 11 votes
9y
My company pays properties in this price range. We typically put $4,000-$6000 into them and then rent them out. The key is having a great team to support your goal and strategy
Newman, CA · Member since 2015 · 42 posts · 5 votes
9y
Anybody know a realtor in Peoria, IL to recommend. My house is a 3 bed and would be in the 30k range. Every realtor seems to want to do only deals over 50k...
Salem, MA · Member since 2017 · 56 posts · 14 votes
9y
Hi everyone,
I am about to start investing in a house for 45 thousands. I do not understand why real estate agents do not want to deal with houses below 50k. Mine does. Unfortunately, it s not in IL.
Investor · Arlington, VA · Member since 2012 · 1k+ posts · 491 votes
9y
I think one of the reasons are properties that low are not as profitable for agents. They can spend the same amount of time on higher priced homes and make a much larger commission.
Philadelphia, PA · Member since 2016 · 7 posts · 1 vote
8y
Not opposed to owning under 30k Even tho management of tenants and property maintenance will have its unforeseen challenges but good renters insurance can save headaches
I was hope to get my brrr strategy funded on under 50k deals with hard money any thoughts?
Not opposed to owning under 30k Even tho management of tenants and property maintenance will have its unforeseen challenges but good renters insurance can save headaches
I was hope to get my brrr strategy funded on under 50k deals with hard money any thoughts?
Have you located a LENDER who'll let you refi at such chicken-feed mortgages? [You DON'T want long-term hard money!]
[Normal Lenders only lend $50k+, which means you'd be only looking at properties that appraise (by them) at $75k+].
It's like this: The house is valued at less than $30k BECAUSE hardly anyone can get a mortgage on it.
And almost nobody can get a mortgage on it - BECAUSE it's valued at less than $30k.