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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Galya W.
Investor · Omaha, NE · Member since 2013 · 5 posts · 1 vote
8y
Capital One finances these properties. It didn't really want to offer me 30k, but was ok with 40k. I purchased the property for 17k, it values now about 60-70k.
1 Reply
Thad McNair
Investor · Fishers, IN · Member since 2014 · 47 posts · 7 votes
8y
@Galya W. Do you have a contact at Capital One? Thanks!
0 Reply
Galya W.
Investor · Omaha, NE · Member since 2013 · 5 posts · 1 vote
8y
well, apparently I cannot post a phone number or an email, so email me, or connect with me ( not sure how it's done here) and I will give you the phone and the email of my contact in capital one.
0 Reply
Brent Coombs
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
8y
Originally posted by @Galya W.:
well, apparently I cannot post a phone number or an email, so email me, or connect with me ( not sure how it's done here) and I will give you the phone and the email of my contact in capital one.
You can show your (only-used-here?) email address in your profile. But, whoops, you deliberately hid yours...
0 Reply
Galya W.
Investor · Omaha, NE · Member since 2013 · 5 posts · 1 vote
8y
let me fix this
0 Reply
Todd Douglas
Realtor · Detroit, MI · Member since 2017 · 184 posts · 33 votes
8y
How is everyone's Detroit investing going?
0 Reply
John W.
Rental Property Investor · Buffalo, NY · Member since 2017 · 257 posts · 130 votes
8y
I've had success wholesaling in 13K-25K range. Some of those properties were also good rentals if you don't have big ticket repairs and can find someone decent to do the work.
0 Reply
Brent Coombs
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
8y
Originally posted by @John W.:
I've had success wholesaling in 13K-25K range. Some of those properties were also good rentals if you don't have big ticket repairs and can find someone decent to do the work.
Aah, but, have you had success HOLDING and renting those same type of properties for lots of years? [If not, why not?]
(Or, wouldn't you be seen holding onto those properties - with a barge pole?) Welcome to BP...
0 Reply
Justin Pillion
Investor · Naperville, IL · Member since 2015 · 166 posts · 28 votes
8y
Originally posted by @Amber Stevens:

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...
I can help you locate a realtor there.
0 Reply
Justin Pillion
Investor · Naperville, IL · Member since 2015 · 166 posts · 28 votes
8y
Originally posted by @Leah T.:

How would you find financing for such a low purchase price?
I have lenders that will finance you at that price and are local
0 Reply
John W.
Rental Property Investor · Buffalo, NY · Member since 2017 · 257 posts · 130 votes
8y
Originally posted by @Brent Coombs:

Originally posted by @John W.:

I've had success wholesaling in 13K-25K range. Some of those properties were also good rentals if you don't have big ticket repairs and can find someone decent to do the work.
Aah, but, have you had success HOLDING and renting those same type of properties for lots of years? [If not, why not?]
(Or, wouldn't you be seen holding onto those properties - with a barge pole?) Welcome to BP...
I'm more of a fan of wholesaling these than I am holding on to them, even though they can cash flow nicely. Just my preference. I had the perfect scenario for these type of properties; bought a double for $12.5K with each side rented by two long term tenants that wanted to live the rest of their lives there, pay on time and were very low maintenance. I got the the rent up to $610 a month. After several months I realized it wasn't it wasn't really for me and I would rather have a nicer property nearby than one that cashflows more far away in a run down part of the city. So I sold it for 19.5k and the buyer didn't even bother to look inside, lol.
0 Reply
LaVonna Shannon
Fort Lauderdale, FL · Member since 2017 · 33 posts · 16 votes
8y
Are these 30k and under properties actual homes or apartment units? I can't find any single family homes in my area under 30k. I'm in Fort Lauderdale, FL.
0 Reply
Brent Coombs
Investor · Cleveland, OH · Member since 2015 · 6k+ posts · 2k+ votes
8y
Originally posted by @LaVonna Shannon:
Are these 30k and under properties actual homes or apartment units? I can't find any single family homes in my area under 30k. I'm in Fort Lauderdale, FL.
Homes. You need to get out more. Explore the 'hoods, all over the country. (If scared, just look online). Welcome to BP!
0 Reply
Account Closed
Rental Property Investor · Sacramento, CA · Member since 2015 · 1k+ posts · 893 votes
8y
I mean if the problem with sub 30k properties are taxes and capex being disproportionately high... I would say the way to get around that is to be multi-family at around the 20k/unit price point. Economies of scale will counterbalance the risks of high capex (for a 4plex, 1 roof at 8k vs 4 roofs at 5k).
If you go 5+ units and find a local bank they can give you a commercial loan! If you're not in a TERRIBLE D class neighborhood and go 5+ units you can go to a conventional lender and get an FHA low-balance multifamily loan and only put 25% down. 40k down + closing costs will get you 10 units at 20k/unit... 30 year amortization, 7 year balloon, 4.75% interest, NON RECOURSE.

Boom!
0 Reply
Ben H.
Onset, MA · Member since 2015 · 1 post · 0 votes
8y
I know this is an old post, but this is something that I have also been thinking about lately. If anyone has any good ideas to share, please let me know.
0 Reply
Shawn Flournoy
Conyers, GA · Member since 2017 · 3 posts · 0 votes
8y
I'm in Georgia and 30k or less properties is what I'm learning to work with and wholesale. I'm about 30 mins away from Atlanta. The properties are out here and some have a good amount of land.
0 Reply
Juan Carlos
Upland, CA · Member since 2018 · 4 posts · 2 votes
7y
@elizabeth S. Thats great advice. I'd like to hear more about how and where you are finding these properties.
0 Reply
Bailey Sessoms
Member since 2019 · 18 posts · 2 votes
7y
@Douglas B. Can you add me as well? I'm new to the real estate investment world and I think this would be a great place to start. Thanks!

0 Reply
Sara Mathieu
Rental Property Investor · Calgary, AB · Member since 2019 · 3 posts · 0 votes
7y
@Douglas B.
Do you do any business in this price range within Canada? Thanks!
0 Reply
David Mincey
Flipper/Rehabber · Randallstown, MD · Member since 2015 · 9 posts · 3 votes
7y
Originally posted by @Bailey Sessoms:
@Douglas B. Can you add me as well? I'm new to the real estate investment world and I think this would be a great place to start. Thanks!

0 Reply
David Mincey
Flipper/Rehabber · Randallstown, MD · Member since 2015 · 9 posts · 3 votes
7y
Welcome to the game. I'm in Baltimore as well.
0 Reply
Christin Adams
Rental Property Investor · Metro Atlanta Area · Member since 2015 · 4 posts · 0 votes
7y
@Douglas B. Can you add me as well? I'm new to the real estate investment world and I think this would be a great place to start. Metro Atlanta Area Thanks!
- 3posts
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0votesNo votes yet

Sara Mathieu Rental Property Investor from Calgary, AB

replied 2 days ago

@Douglas B.

Do you do any business in this price range within Canada? Thanks!
- 7posts
- 2votes
0votesNo votes yet

David Mincey Gov't employee and Birddogging from Randallstown, Maryland

replied about 2 hours ago

Originally posted by @Bailey Sessoms :
@Douglas B. Can you add me as well? I'm new to the real estate investment world and I think this would be a great place to start. Thanks!
- 7posts
- 2votes
0votesNo votes yet

David Mincey Gov't employee and Birddogging from Randallstown, Maryland

replied about 2 hours ago

Welcome to the game. I'm in Baltimore as well.
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0 Reply
Bailey Sessoms
Member since 2019 · 18 posts · 2 votes
7y
@David Mincey Thanks! How long have you been investing?
0 Reply
David Mincey
Flipper/Rehabber · Randallstown, MD · Member since 2015 · 9 posts · 3 votes
7y
Off and on since the mid 90's.
0 Reply
Leonard Leo
Member since 2019 · 5 posts · 0 votes
7y
@David Lee what area are you in?
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Anyone out there specializing in under 30k properties?

Most Popular Reply

540 Replies

Sara Mathieu Rental Property Investor from Calgary, AB

David Mincey Gov't employee and Birddogging from Randallstown, Maryland

David Mincey Gov't employee and Birddogging from Randallstown, Maryland

TOP CONTRIBUTORS

INNOVATIVE STRATEGIES TRENDING DISCUSSIONS