I found a house in the Youngstown, OH area - one of the better parts of town for $9k. The home needs about $10k in work and the comps in the neighborhood range from $33,300 to $64,900.
If I pay cash for the home and use my credit cards to purchase materials and do the work myself, I figure I can make it rentable for about $6k and spend my two weeks vacation doing the work.
Rents in the area are around $500 per month and the property taxes are about $380 per year.
Red Star?
Can I ask as a new investor, do you live in the area or was this a long distance deal? I'm asking because my husband and I are on the brink of doing a long distance deal and were wondering how hard it is to rehab from afar.
Cyndi
It is hard enough to make money close to home. Trying it at a distance can be a disaster. Just ask all those California investors who have lost their rear end throughout the midwest.
Sounds like it is working out nicely for you. I live in the area and if you can get a renter to pay that kind of money, then you are doing very good. Most rents in this area from what I have seen run around $300 to $400 a month. So pat your PM on the back.