Considering moving from Canada to Dallas as I've lived in the Coppell/Irving/Grand Prairie area and want to jump into real estate investing. Have attended a courthouse auction and been browsing hubzu, auction.com, etc, but don't know where to start. I can only use cash and am targeting a 100k budget, no interest will be considered, so at this point I'm thinking my best bet is to buy a rehab sub 100k house, fix it up and rent it out, and keep working until I can buy the second, third, etc in cash. Thoughts?
You won't find much in the sub $100K space unless you don't mind 50ies or 60ies shack that needs everything and is located in a bad area.
Why do you oppose to mortgages?
If you remove that hurdle, you can move up the price, asset quality, and tenant quality.
I wonder if the original poster follows Sharia law. Interest is not allowed in that system.
I think you can still buy property in that price range, but it probably needs to be purchase price. You will need to save up more for the rehab. I regularly see properties for $110k +. I would suggest you start looking now, in the mean time save up a bit more and jump once you find the right deal. You can find these deals in parts of Fort Worth, Watuaga, etc.
I would look into investing in the San Antonio market. As we continue to grow at such a rapid rate, our barriers of entry are still significantly lower than the Dallas market. I buy and sell multiple properties under 100K all over the city. As a newer investor I would look into targeting appreciating areas, where their is more room for error.
I invest and live in SA. Cap rates are crazy good. Why don't you leverage your money? I know an extremely reputable HML that has a rehab/rental program for only 3% down. You can acquire more properties and then do a commercial loan once they are rehabbed and seasoned.
My niche is in acquiring rentals that I can be all-in on under $100,000 here in San Antonio. I currently have 6. I will admit 2 of them are in rougher areas but I have very good tenants in place and I love them!
Outside of my very first purchase which is a duplex that I house hacked, I a very proud of my first non-owner occupied property. I bought it for 28k, put about 8k into it so I am all-in for around 38k with closing costs and it rents for $725, market rent is actually closer to $795. The best part about that deal is I got a check for $28 at closing because I used a hard money loan!
My other 4 are in better areas, Converse, Kirby, near Lackland (better part of near Lackland.) So if you are looking to be all-in under 100k so you don't have to get a loan it is definitely possible. Would love to help if you decide to buy in SA.
@Arissa Pedroza Can I get the info of your hard money lender as I am looking for HML in the next six months for my first property.
@trentonmaye DM me :)