Purchase property somewhere

[Ruben Correa]

Hello everyone. I would like to know where I can buy a house for $40-50k and rent around $600.

Any thoughts?

[James Wise]

Originally posted by @Ruben Correa:

Hello everyone. I would like to know where I can buy a house for $40-50k and rent around $600.

Any thoughts?

 You're looking at the Midwest for pricing similar to that, although it should be noted that both the acquisition price and rental rate will be higher than what you've proposed in any part of the cheapest metro areas so long as you aren't in the ghetto.

Of all of these kinds of markets Cleveland is the one I am most familiar with and it's also very popular with investors across the USA so I figured you'd get some value out of reading The Ultimate Guide to Grading Cleveland Neighborhoods. I also have similar guides that you may want to look over for Kansas City, Missouri. & Birmingham, Alabama.

P.S. 

Take a look at the below punch list. Should help you lower risk no matter where you end up investing.

• Don't buy in the roughest neighborhood in the urban core. Pick a solid B-Class suburban area. Perhaps a nice 1950's built bungalow.
• Always hire a 3rd party property inspector to give you an unbiased feel for the home. The reports are 40-90 pages long and go through the entire house in great detail.
• Get an appraisal. If your using financing the bank requires this. This is good. The bank isn't going to let you blow their money. They have more skin in the game then you do.
• Make sure you get clear title. If using a lender this is a non issue. They will make you do this. It's those maniacs that buy homes cash via quit claim deed off of craigslist that really get screwed.
• Make sure your property manager is a licensed real estate brokerage.
• Google Clayton Morris and/or Morris Invest for a cautionary tale of what not to do when buying turnkey real estate
• Understand you can not eliminate all risk, only mitigate it. If you are risk averse, real estate, (especially out of state) is not for you.

[Joshua Adlam]

@Ruben Correa

Atlanta Georgia

Chattanooga Tennessee

[Mike D'Arrigo]

Originally posted by @Zeke Liston:

Originally posted by @Ruben Correa:

Hello everyone. I would like to know where I can buy a house for $40-50k and rent around $600.

Any thoughts?

Detroit, Cleveland, maybe Cincinnati. You could buy a house in Columbus for $80K and rent for $800-$1,000. Plus the population and development is on the rise. 

There are a lot of markets where you can buy something in that price range but you probably don't want to. Unless you are local and very hands on, this asset class doesn't work. Even if you could some how get a good tenant to live in a neighborhood like that, the numbers don't work. You're maintenance and CAP Ex expenses will be too high as a percent of gross rents. It costs just as much to replace a AC unit, water heater of fix a leaky pipe on a property renting for $900 per month as it does on one renting for $600/mth. Tenants turn overs are a bigger nightmare.

[Eric Martin]

Originally posted by @Ruben Correa:

Hello everyone. I would like to know where I can buy a house for $40-50k and rent around $600.

Any thoughts?

Hi Ruben, I am local to Montgomery, AL. We are finding several brick ranches between $40,000-$60,000 that rent for $600-$850+. I would love to tell you more about the market and find out what specifically you are looking for and how I can help. I just sent a PM. Look forward to connecting!