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.
@Andrew Syrios - Would you mind sharing your purchase price and rehab costs? I'm looking at a property that would be very similar I believe.
The purchase price was $20,000 and the rehab was about $5000. The property is the Ruskin area which is not an area that we're looking at right now. If we found something ridiculously cheap there, maybe, but it's a bit of a headache to manage.
Amazed to see so many homes in good shape for sub $30k.
How are you guys/gals finding these deals? I'm in Houston, TX and feel like I should be able to find these types of deals.
I'm assuming searching the traditional MLS will not yield these types of deals, so are you buying from auctions, wholesalers, short sales, etc?
Should I be working with a realtor or doing a bunch of digging on my own?
I have one house that I bought 2 years ago for $72k, fixed up and sold via seller finance. I've finally got enough funds for another go round, but after seeing so many great deals I'd rather do one of the deals I'm seeing here vs. buying for $100k+ to rent out for 8% ROI...
I know this thread has been dead for a while, but I'm just absolutely in awe of all of these! I was hoping somebody could respond to the last post by @Shak Noor :)
I purchased 2 from auction.com, a couple from sellers just wanting to be taken over by subject 2 from by word of mouth. The rest that I have been through MLS like @Dawn Anastasi .
This thread has slowed down a lot, but I finally broke the $30K barrier so I wanted to share.
Last month I closed on a lovely 3/2 in the northwest part of Atlanta with the Beltline across the street. The house was $17K with a $6K fee to the wholesalers. I'm spending about $5K to replace the AC, furnace and duct work. The house came with tenants paying $750/month with 11 months to go on the lease. When they move out I'll "upgrade" to Section 8 tenants. The average 3bd voucher in the area is $1,009 or I can split the biggest bedroom into two rooms and aim for the average 4 bd voucher price of $1,151.
Thanks to @Kareem Wyatt for bringing me the deal and @Rick Baggenstoss for his usual sound advice, especially on using private money!
@Heather W. I have never had a bad experience with Section 8 investors because they risk losing Section 8 forever if they don't pay their portion/trash the house. I have a feeling you're going to be very happy with your purchase years from now when everything around the beltline is renovated! Kudos to you for getting the ball rolling on renovations in your area.
Foreclosed property that I just picked up last week. Only needs minor prep before renting or possibly listing for sale. This one is better than the usual deals in my area, but it seemed to slip under the radar of other investors. 11k + closing costs for me to snag this one.
@Nazz Wang Where are these properties located? I'm guessing your long distance land lording considering you're in SanFran. How is that working out so far? Great buys!
They are in Milwaukee Wisconsin. I have family in the area and travel back quite frequently. The journey to set up shop has been fun! I will have to say I am addicted to REi out of state.
An update on the Jackson house I posted about a few weeks ago, we did get inside and it is clean and serviceable, there is a tenant in it that has a right to stay through April. After that he can either buy it from me or we will take possession. We are not sure yet if we will rent it for $700 or sell it with owner financing for 5k down and $450 a month. We will decide in April, if the renter doesn't buy it.
Our Jackson property, Under Michigan FC law the former owner can stay in a rent the house for 6 months after FC. We go the house back October 15th and will take possession April 15th. We did send our realtor out to do a walk through and the inside looks fine so we are just waiting. One of the local PM's says these are renting for $700 right now..
An update on our latest Lansing Purchase, Purchase price 5k + current and back taxes $7,900. All in 12.9k. Our PM has already walked the property and says he can bring it online for 6k. Rents are running $725.
I know the economy is depressed in a lot of Michigan and Ohio, but would any one here consider buying sub 30K houses in those states while living over a 1,000 miles away? I do not have a team put together but I know of a guy that pays cash for bank owned properties near or outside of Toledo OH. Many of them are rough neighborhoods but his returns are very good as he keeps them as rentals.
Where I am you can not even buy a decent Mobile Home for less than $30K anymore. A SFH runs 267K for my suburb and 236K for Colorado. Rents are skyrocketing for even 2/1 houses.
I envy investors that can get homes for less than 100K, and still rent them out for over $700.
Good Luck to everyone in 2015 on finding those "home run" deals!
@Robert Blanchard Look at the picture right above your post, we bought that in Lansing MI and operate out of Arizona. building a team is not that hard, call a local property manager, most of them are licensed Realtors and have all the contractor connections you need.
When we bought the above property we had a PM go look at it and give us rent and rehab estimates, we are now in the process of paring down the rehab list and will start in the next week or two.