Carlsbad, CA · Member since 2010 · 1k+ posts · 1k+ votes
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There's been a lot of talk of sub $30k properties, so I thought it would be an interesting idea to post some pictures of what $30k buys in different parts of the country.
So here's a picture of a 2 bedroom house. I don't have the outside picture, with all the snow I just wanted to run inside the house. These are after pictures. Rent will be $800-$850. Tenants pay all utilities including lawn maintenance and snow removal.
I don't provide appliances anymore. If they are there, then we give them to tenants as-is.
But here is my finished Richmond Home (my most recent)
Just want people to know: Just because its a Working Class Neighborhood (WCN for short), does not mean you have to skimp on the repairs and renovation...I paid 25k for this property, and put about 25k in new repairs (big ticket items needed, more than I put in the past, but if it needs new anything, I repair on the front end, not back end). Previous rehabs were 10k for 35k property, and 23k for 13k rehab.
This is an excellent post @Sharad M. , because the visual does so much for people to understand whats available, abundant, and cash flows well. I'll post more tonight.
Yes, reo's over 50k list price. The longer on market the better as far the bank willing to take 30k. The house I posted was originally listed at 54k. It fell in and out of escrow a couple times. 422 days later I got it for 30k. Offered 29k originally and they countered 30k. I did have my bank make a pre approval letter for 29k and not a penny more. I thinked that helped. There were at least two all cash back up offers for more than mine so a little timing luck can't hurt either.
paid 9500+rehab+financing=under 20k...rented 1000 per month, owned outright in 2.5 years, laid out all money, refinanced it all back 100 percent once rented. now I own it outright.
Do you guys get most of these properties from MLS or off-market? Pretty impressive.
I was representing a buyer on a $50k foreclosure recently and there were 4 backup offers. The condition was similar to these. And this isn't even a hot market for rentals.
The majority of my deals are MLS sourced but I also love foreclosure and tax auctions when the bidders aren't driving the prices up to full retail.
Here's my most recent sub 30k property. 850 sqft 2/1 purchased for $12k and another $11k in rehab (half of that was a new roof and new AC system). It rented for $700 before the rehab was finished. On to the next one....
The houses in my area at this price point are mostly in horrible areas that I don't want to go to. To me I think Connecticut (Fairfield county) is a tough area to make this happen.
I will sit back in awe at this point. Great Job everyone!
Agreed @Julian G. I see the pictures and read the stories on BP of these houses that are purchased for sub 30k ... but there is nothing like that around here. Except for maybe like you said, in areas that I don't want to go to. Going to have to start looking out of town for deals like these...
@Julian G. Believe me the horrible sub $30k homes are prevalent throughout the state. The problem here in CT is the overabundance of older stock homes that primarily make up the bulk of proprieties in this price range. Combine that with much higher housing costs in general as compared to a place like Florida. Often times these homes are located in bad or borderline bad areas. You really have to edge closer to $50k or greater to find decent candidates and even that's a struggle. In my area (New London County) we have a huge inventory of homes that Abraham Lincoln could easily have slept in!
It's tough to find a good flip here but when you find one you have to act on it immediately. You just have to scrub the listings daily and have others looking for you as well(wholesalers, bird dogs, realtors, etc). The activity is picking up though!
@Jason Roberts Personally, I travel 45 min in one direction for one group of properties, and 1.5 hrs in the other direction. Is it worth the drive? Yes, because I dont need to drive anywhere to have my property manager drop checks off at the bank.
WOW, just wanted to say how motivational it is to go through this thread. As a beginner with no experience I am hoping to follow some of the great ideas I have seen in this thread. Some of my personal bullet points are
- Personal touches to make a 'home'
- travel an hour from your home to find the right deals
I made an offer on another 2 bedroom 1 bath home for $7,000 yesterday. It may need about $2,000 in repairs. If it is accepted I will post pics.
My wife grew up in there in Leinor ,in a neighborhood behind an old chevy dealership . I am in the Annapolis area , and what a difference between here and there , When I was there I felt WEALTHY . A nice spread there acreage and a 5 bedroom house was $275,000 ..... Here the same house would be $ 800K . Its all location I talked to a small builder for a while , there a building permit for a new house took a day or 2 . Here it can take 6 to 8 months . There the permit fees were a couple hundred , Here 15 grand and up . Here work is everywhere , there the jobs are hard to find .
@Matthew Paul I actually live within a mile of that dealership. Jobs are difficult to find in the area but they seem to be getting better with Google being in town now. My last 2 homes that I bought have been around $10,000 and renting for around $500.
Amazing find @David, North Carolina is fantastic right now! I mentor people on finding these properties, analyzing/renovations, etc, and they JUST purchased in NC, but they live in Manhattan. Beautiful home in this price range.
Im glad that people like you guys and myself show people step by step how to make money in these areas, and the pictures help too, because the path to wealth should be open to all people...and this one is sooo affordable ;-) 7k??
@Jon Hey there, If I am managing the contractors, I schedule to meet all my contractors the saturday before, and set up a time for them to do the work the next saturday. I also have a lockbox, and I higher them out Thurs/Fri so I have enough time to get their saturday to change the lockbox number
After I am done and its in the property managers hands, I let them handle all repairs. It really works out well, they are usually cheaper than going out on your own.
I've been able to do that between those things. If I change the lockbox code, I usually text the contractors the code when they are scheduled to go.
Wow ... I'm a newbie in the intro phases of my REI career (saving for a down payment, reading every book I can get my hands on, etc.) and I stumbled across this thread. This is awesome! I'm in the Atlanta area and hope to be able to find some sub$30k properties of my own this time next year (I may go a little higher to the $45-$55k range if needed though). This has been a huge inspiration to me! @Sharad M. and @Lisa Phillips ... you two are AWESOME!
Quick question ... how are you all determining/learning the prevailing rental rates in your markets? Do you find that websites like Rentometer.com are accurate, or are you relying more on your own legwork (i.e. contacting others who are advertising homes for rent to see what they are charging)?
Thanks, and keep the pics coming. This is my new favorite BP thread!
Target market 30k to 50k all in...Rents for $700 to 1000k per month. Keep in mind taxes.. that can eat up 4 months rent....you want to target double equity gains as well or no deal. This proven math formula is almost like doing crazy mobile homes prices but with real deeds to refi or fund future and create investments available options.