Rental Property Investor · Vancouver, WA · Member since 2018 · 32 posts · 31 votes
In what markets can you buy 50k-60k SFH's? 3 bed, 1-2 bath. I'm looking for homes that are rent ready. In C neighborhoods/working class. No war zone. With a demand for rentals. Cash flow is my plan. Is this possible anymore? If so, let me know your thoughts.
In what markets can you buy 50k-60k SFH's? 3 bed, 1-2 bath. I'm looking for homes that are rent ready. In C neighborhoods/working class. No war zone. With a demand for rentals. Cash flow is my plan. Is this possible anymore? If so, let me know your thoughts.
Upstate NY(rochester, buffalo, syracuse), ohio (dayton) st. Louis
In what markets can you buy 50k-60k SFH's? 3 bed, 1-2 bath. I'm looking for homes that are rent ready. In C neighborhoods/working class. No war zone. With a demand for rentals. Cash flow is my plan. Is this possible anymore? If so, let me know your thoughts.
Hi Eli, Cleveland, OH would be a good place to check out in that price range.
Rental Property Investor · Vancouver, WA · Member since 2018 · 32 posts · 31 votes
5y
@Zeke Liston
Hey Zeke,
Yeah Cleveland is a great market I have a team in place to be successful there. I own one SFH in that market. But you can't find any SFH's that are rent ready for 50k-60k anymore.
@Eli Webb I'm a newbie looking to invest in the Cleveland area, do you mind sharing your reliable team? I would like to find some great boots on the ground. Thank you!
Rental Property Investor · Torrance, CA · Member since 2016 · 724 posts · 1k+ votes
5y
@Eli Webb The Great Lakes region (AKA Rust Belt) and the Deep South. $50,000 - $60,000 can be done, but if it’s not in a war zone it will go fast, and usually to a cash buyer.
I can only give input on the markets i’m in. I have two properties. One in Indianapolis, and one in South Bend, Indiana. Indy is a very solid market with lots of projected growth. Unfortunately this makes it very competitive and is appreciating making deals harder to find. But if you can get something, I think it’s likely to continue appreciating.
South Bend is a smaller city, and doesn’t have the economic outlook that Indy has. Population is projected to grow but very slowly. It’s not declining, but not really growing either. It’s strictly a cashflow play. Although prices have been rising because of the lack of supply caused by covid. But I don’t believe there’s much fundamentally that can sustain the growth. It’s less competitive, but still a sellers market for sure. Rental rates are comparable.
Have you considered buying smaller 2 bedroom SFR's? This is what I like. Both of my properties are 2/1 sub 800 square feet. They are not as desirable, because most investors think they won't be attractive to tenants. But, I've found just the opposite. Some small families are in the market for a 2/1 apartment, because they're on a budget. Then when they see 2/1 house with a yard they're willing to pay a couple hundred more for it. It's never taken me longer than 3 weeks to find a tenant. If you're trying to get something under $70,000 in a solid neighborhood, a 2 bedroom will be more realistic. Also less square footage means less CAP EX. Cheaper to buy, and cheaper to maintain. I love small houses.
Yeah Cleveland is a great market I have a team in place to be successful there. I own one SFH in that market. But you can't find any SFH's that are rent ready for 50k-60k anymore.
What about Columbus. Is that achievable?
That's great! Yes, you can do well in Columbus. You're likely going to give up some cash flow but it's appreciating pretty rapidly.
Rental Property Investor · Vancouver, WA · Member since 2018 · 32 posts · 31 votes
5y
@Jonathan Hulen
Thanks for the insight, Johnathan! That’s also a really cool perspective about the 2/1. I never thought about it that way. And actually I’ve always thought about it the way most people do (the way you described)
In what markets can you buy 50k-60k SFH's? 3 bed, 1-2 bath. I'm looking for homes that are rent ready. In C neighborhoods/working class. No war zone. With a demand for rentals. Cash flow is my plan. Is this possible anymore? If so, let me know your thoughts.
We are seeing extremely low inventory in OKC, I saw a house pop up, small, dumpy, C Class for 125k, so without doing some serious digging, the bottom line is quite a bit more than 60k. If it's in that price range, it tends to be in a less favorable condition or area.
Property Manager · Oklahoma City, OK · Member since 2019 · 579 posts · 351 votes
5y
Yes, I'd agree with Forrest that Oklahoma City has appreciated rapidly in the last years. The median sales price has jumped 15% since January 2018 and some areas have appreciated 10% in the last 6 months. There are pockets of south OKC where you can find rentals for $50-60k but there's a ton of cash buying competition from old school landlords who scoop those up off market.