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.
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
7y
@Douglas B. at that price point ( in this day an age ) you will either be in the middle of nowhere, an area with little to know appreciation and or war zone.......... But than again, we used to buy all in at that price point in the Cleveland markets, and that turned out to be very wise investment, so I could bet wrong. However overall 30kish will be what I described above .
@Douglas B. at that price point ( in this day an age ) you will either be in the middle of nowhere, an area with little to know appreciation and or war zone.......... But than again, we used to buy all in at that price point in the Cleveland markets, and that turned out to be very wise investment, so I could bet wrong. However overall 30kish will be what I described above .
Good luck
You can still find sub-30K properties in decent areas of the Cleveland market in 2019 (not the middle of nowhere, not a no-appreciation zone, and not a war zone)... you just have to be patient. They are not as common as they were a few years ago, but they still occasionally come about.
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
7y
@Robert Matelski you cannot ( MAYBE I can ) 30k all in prop in Cleveland in any decent area. If you can ( again not going to happen ) I suggest you buy as many as you can, heck I will take 10 from you right now,,,,,, but it is not going to happen
@Robert Matelski you cannot ( MAYBE I can ) 30k all in prop in Cleveland in any decent area. If you can ( again not going to happen ) I suggest you buy as many as you can, heck I will take 10 from you right now,,,,,, but it is not going to happen
Good luck
They're certainly not common in 2019 like they were a few years ago, but again, they are occasionally out there if you are diligent and can navigate the market exceptionally well. I closed one most recently this past January. I'm pretty sure I've been investing in Cleveland-area real estate much longer than you have, so maybe I'm just more attuned to what it takes to make successful deals happen. Perhaps with enough time and experience you will be able to as well! Cheers, man.
I am focusing on super cheap property. I think our creativity will allow us to see and get more out of them. I just bought a house on hubzu for 3k. Gonna scrape the mold infested joint and build a Bee Sanctuary on the oversized lot. Its out in the stix about 45 minutes from my house and there are plenty of bee keeping societies that I can pay to tend it all. At $80 a gallon for unrefined honey...im gonna p00ull wY more than I could imagine, building a house then renting it out in that particular area.
Fingers crossed, I'll be able to donate the house, itself to the local fire department...let them burn it down for practice and write the value of the home (not much albiet) off at the end of next year. Im knocking it down anyway...might as well get paid to do it rather than pay someone else!
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
7y
@Robert Matelski I have done more than 500 transactions out there over the last seven 8 years. I’m still doing between six and 10 deals per month. Single-family multi family. If you can get a property in Cleveland all in the $30,000 I’ll buy as many as I can from you. Simply not going to happen. There’s nothing about the Cleveland market I don’t know. I deal with the sheriffs auctions, tax liens, I have endless contacts. More in tune , too funny
@Robert Matelski I have done more than 500 transactions out there over the last seven 8 years. I’m still doing between six and 10 deals per month. Single-family multi family. If you can get a property in Cleveland all in the $30,000 I’ll buy as many as I can from you. Simply not going to happen. There’s nothing about the Cleveland market I don’t know. I deal with the sheriffs auctions, tax liens, I have endless contacts. More in tune , too funny
Seems there is plenty you don't know. I've been at this in the Cleveland market a lot longer than you have (since the 1990s), and once again I know (first-hand, see previous post) there are still occasional sub-30K deals out there (I am only in the business of buying and holding, so I am not trying to feed you deals or do flips... I am just an investor, so it is not my full time job, and I don't intend to make it my job) -- usually there is at least some degree of relationship-building necessary as a pre-req to get the best deals... maybe that's where you need to focus your energy (more than just having a list of "endless contacts"). But I guess you have convinced yourself that there's nothing more for you to learn at this point, so not sure what else to tell you.
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
7y
@Robert Matelski I think you are misunderstanding my post. I do not need deals, have as many as I can sell or keep. Again if you ( I can consistently ) can be all in 30kish, in GH MH, CH Lee Harvard, Euclid, West side I suggest you buy as many as you can get . Hey maybe you get lucky once in a while, great for you :) . Again I know all the " players " in Cleveland and are provided with a dozen deals a week. All in 30kish, for the avg out of state investor not going to happen. This means you need to buy for 20kish, most need 10k,,, again extremely difficult . Last month I purchased a duplex on W 100 near edgwater for all in 40k, a SF on W 101 all in about 38k,, not really sure if anyone can get a better deal...... Heck I have a 21 unit on corner of Dennison and Lorrain with a 20% + net cap, not to shabby :)
@Robert Matelski I do not need deals, have as many as I can sell or keep. Again if you can be all in 30kish, in GH MH, CH Lee Harvard, Euclid, West side I suggest you buy as many as you can get . Again I know all the " players " in Cleveland and are provided with a dozen deals a week. All in 30k, not going to happen. This means you need to buy for 20kish, most need 10k,,, again extremely difficult .
Good luck
Knowing all the players in the Cleveland market isn't the same as people wanting to work with you.
Specialist · Cleveland, OH · Member since 2018 · 1k+ posts · 666 votes
7y
@Robert Matelski again I think you are misunderstanding my response . I can get as many as I want for all in around 30k, MOST out of state investors cannot
@Robert Matelski again I think you are misunderstanding my response . I can get as many as I want for all in around 30k, MOST out of state investors cannot
Asheville, NC · Member since 2017 · 170 posts · 242 votes
7y
I have two under 30k rentals.
Property #1 - 3/1 - paid $25k put in $12k.
Rent 800
Built in ‘95. It had a new roof in 2017 and new hvac in ‘17 both free to homeowner (habitat house). Hml financed. Arv 80k
Property #2 - 2/1 - paid $18k put in 10k.
Rent $650
Built in 87. Baseboard heat. House on slab. I put a new roof on for $3k. Hml financed. ARV $80k
Both are C class properties also located in a town where the neighborhood varies street to street. I’ll buy more here as I can. Most are mill houses built in the 30s-50s. I prefer newer (no lead paint / foundation issues / knob and tube etc ).
Built in ‘95. It had a new roof in 2017 and new hvac in ‘17 both free to homeowner (habitat house). Hml financed. Arv 80k
Property #2 - 2/1 - paid $18k put in 10k.
Rent $650
Built in 87. Baseboard heat. House on slab. I put a new roof on for $3k. Hml financed. ARV $80k
Both are C class properties also located in a town where the neighborhood varies street to street. I’ll buy more here as I can. Most are mill houses built in the 30s-50s. I prefer newer (no lead paint / foundation issues / knob and tube etc ).
Investor · Triadelphia, WV · Member since 2014 · 46 posts · 11 votes
4y
Along these lines, I have a related question. I am trying to do a cash-out refi on a rental property of mine in Ohio. The ARV is $66,000 and I own it free and clear. Looking for $45-50K (75-80% LTV).
The problem I am running into is that I am having a very hard time finding a lender who will do a refi under $75K.
Any recommendations on who might be able to look at this ?
Along these lines, I have a related question. I am trying to do a cash-out refi on a rental property of mine in Ohio. The ARV is $66,000 and I own it free and clear. Looking for $45-50K (75-80% LTV).
The problem I am running into is that I am having a very hard time finding a lender who will do a refi under $75K.
Any recommendations on who might be able to look at this ?
Hey Joe,
I have properties in Michigan and I was able to secure a $30,000 loan from Huntington Bank. I don't know if they cover Ohio, but they maybe with looking into.
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!
Definitely, would love to be apart of this group. What I’ve done here in Ohio is cold call people and build a relationship. I got one deal for 35k in Columbus after I closed on a deal with this buyer that I cold called, he offered me the 35k one.
Along these lines, I have a related question. I am trying to do a cash-out refi on a rental property of mine in Ohio. The ARV is $66,000 and I own it free and clear. Looking for $45-50K (75-80% LTV).
The problem I am running into is that I am having a very hard time finding a lender who will do a refi under $75K.
Any recommendations on who might be able to look at this ?
Try Shawn Huss from Huntington bank or Jerry Padilla from prime lending.