Finance $20k-$30k condos in Houston

[Michael K.]

Instead of buying an apartment complex in Houston, I want to buy few $20k-$30k condos one condo at a time (not in the same complex). How can I finance $20k-$30k condos?

[Barry H.]

MICHAEL - As a Hard Money lender (HML), I would not recommend buying one at a time as you will incur escrow/closing costs each time you purchase, and for that price point, it could be as much as 20% of the cost of each unit. However, sounds like each condo is separately owned, so you are kinda stuck.

You might be able to partner with a HML who can acquire 5-7 of them for you (with a proper amount down on the entire amount on your part....like say $30K), and if you can cashflow them well while paying the HML debt service, it would just make sense for you and the HML. If they rent out for at least $600/Mo after minor ($3-4K) rehabs, the ROI would work.