@Nandy B. Been trying to break into the Oklahoma market for about a month now. MF is verrrrry competitive it seems like. I've made offers at list hours after going on the market and still been too slow. My current motto is "On to the next." Best of luck with your investments!
I am closing on one SFH for $5990 and another for $7500 that is around the corner. I still have to get estimates on the rehabs for both. I plan to buy and hold with renters in place as the area appreciates over the next few years. Comps in the next neighborhood over are around $150k so I am hoping for a trickle down effect. There is a revitalization plan for this particular neighborhood as well.
I have only purchased 3 properties in my life and the cheapest has been my current BRRRR property at 56K. Put in 20K of rehab and hoping it appraises for 100K in a month. We will see how that goes.
19k here in SC. I put a new HVAC system in it and rent it for $600. Sadly, I'm in the process of evicting them right now for non-payment, but it was assessed at 45k this year, so I should easily at least double my investment in under a year once they're out. It's zoned commercial, which is the primary reason I purchased it. I currently have residential tenants there, but I expect a small business in the area will buy it.
@Nandy B. That's certainly the biggest problem with cheap properties. However, when you've got limited capital, you gotta do what you gotta do. I also feel that they appreciate the most steadily. I don't ever consider appreciation when I invest, but cheap properties tend to have nowhere to go but up.
Although i d like to do bigger deals, this is the best I can do right now. I don't want to wait to do deals and I don't really don't care for wholesaling.
I hope to revist this conversation with a better story in about 5 years 😁.
Well Don’t just assume there’s no good tenants in lousy areas . I invest in some of these and I can assure you if you market right and willing to hold your ground you can find good tenants even in a d class area . It is not uncommon for me to get 100 messages on Facebook wanting my place in a few days ( and they are nothing fancy ) .. of those 100 maybe only 4 candidates will be good enough to schedule a tour . Then I narrow it down .theres a butt for every seat .
Try doing student housing. Once my houses are fully renovated, I plan to try marketing specifically to students. My houses are within walking distance of a local college. I am possibly thinking about renting by the room as well for a bigger monthly cash flow. I am actually kicking myself for not doing this sooner in a city like Philly where there are a lot of landlords specifically renting to students by the room. North Philly prices have gone up dramatically (in the most desirable areas and close to schools) and I'm sure that the investors who are targeting university students are making a killing right now!
I bought it because it was within my budget and strategy and it was my first property.
I rehabbed and it and rented it still have it almost 2 years later it is currently renting for 1500 per month and has been for about 1 year and a half.
Yes I would defintely do it again, still looking for deals like this one all the time.
Bought a condo for $38,000. This was my favorite deal I’ve ever done. I was called by the title company that there was a sale fail and the contract said and it assignable The seller had signed the sales docs and the buyer was another bank and they had filed bankruptcy that day. As a result they weren’t going to sign the purchase and signed a release/assignment. The title gal called me and told me to head to her office immediately with a cashiers check. I never saw anything on this prior. It turned out to be a fully rehabbed 2bed condo in a super desirable area of Portland Oregon rents were $1300 on day one and I had over 30 calls in the first 30 minutes. It’s been rented to the same person for seven years. After all costs I bank 30% cash on cash and the asset is now valued over $250k.
I also purchased an 8 plex from a bank for 550k but was given a 100% loan and 100k for rehab with no money out of pocket. I just sold that complex for $1.25m.
Both deals were due to relationships that were built up over years. The banks knew I invested and when it was time for them to sell an asset I was the first one they called. The banks moved assets they saw as liabilities and I made a great return because while I had to do some work the value was there. It was a win win and that’s the best way to invest.
Four plex. 800 sq ft 1 bedrooms for $8378 including closing costs. Property built in 1959 or thereabout. Seperate gas and electric meters but share water. Currently rehabbing have 2 units 90 % complete. So, far about $7500 in money spent on rehab. This is mostly material as I am a contractor and provide most of labor. The ARV is around $120000 but I'll probably hold for the cash flow $475 each x 4 or $1900 month minus property tax, maintenance. Neighborhood is Class C +.
Bought my first foreclosure in 2015. I had two other SFRs paid off and took a HELOC to purchase this one. I paid 78K and put 6K into it. It rented for 1000.00 a month and stayed rented until I got a contract on it last month. Paid the house off in 2 years. I had 86K in it total and sale contract is for 125K. I"m doing a 1031 on the house for a duplex in the Branson MO. area that rents at 1200 a month. Adding up rental income minus repairs, maintenance, taxes and insurance, I have under 50K invested in the house. The duplex is valued at 128K but I have a contract on it for 100K. This is the third of 5 duplexes I am buying on the same street using a 1031. By next spring I will have 5 duplexes valued at 640K with a little over 50% equity in them. This deal will take about 12 months to complete, but will generate an additional 5K a month in cash flow. given the opportunity, I would do it again.
$2,500 cash and a carton of Newport 100s for 2 houses so $1,275 a peice for quit claim deeds after I did title search. Had about 6k in Taxes 500 in blight tickets and 3k in water. For the Taxes I had 15 months before they would head to forclosure auction. Got a dumpster. Some guys, lawnmower and powerwasher. Spent a little less than week on both and sold them for 20k on a quit claim buyer responsible for all taxes water etc.
I would do it again in a heartbeat and still do just not THAT cheap.
@Reco Collins - Hi! I've got one property via online auction. Just wondering if you'd share what auctions you've found your deals on? I bought my first one via the Williams & Williams Auction site. Thanks in advance!
Considering that the housing market has undergone dramatic changes since 2008, a more appropriate question would be "What is the cheapest house you bought in the past 12 months?"
@Shardae Robinson I’ve actually only used local auction companies in Baltimore. I’ve given a run at some properties offered by the larger auction sites with no luck.
@Alex G. $18,500 July 2018 and just got one through a receivership Auction for $35k