I'm just starting out with this strategy so looking for advice - my goal is to buy low-income properties (65k or lower, preferably below 30k even), and then turn around and owner finance those properties out.
I'm aware of many of the risks involved, and how to deal with the person if they default, but my question is - how do you choose the right property to do this with? What are your "Must haves" in a property like this? 70% below market value? A fixer-upper is fine as long as it's livable? What are some of the boxes to check off for this kind of property to give you the best chance of success.
Any advice is welcome!
The less work needed the better. It will always be more difficult to sell the house if it needs work. The percentages for us can be highly flexible. One of the guys I work with is even willing to be at about 95% of ARV on a property. Too high for me, but he is okay with it and has a lot of reserved funds for a rainy day.
This realm of investing has a huge amount of variation in what people do and you will need to find what you feel comfortable with.
Must have for us though, is little to no work needed. I don't want to put money in at the beginning on these types of deals.