Where can I get the best ROI?

14 Replies

Hello-

I am newbie looking for wholesale deals with some rehab work required for a flip under $40K with an ARV around $60K. I don't mind getting involved with other investors or groups.

Thanks,

Armand

@Armand P. You will need to buy in the Midwest states of Missouri, Ohio, Indiana to find deals with an ARV under 60k. Have you looked into out of state investing yet?

Hi Gordon-

Thank for you reply. I am new to BP and real estate investing. I realize that I can't afford anything in the bay area and haven't really looked out of state.

I am most interested in multi family units as a long term goal but for now I would like to learn or partner up with other investors for flips. Do you have any listings?

Thanks

Armand

ROI is about the numbers, NOT the location. I could cite my cash/cash in SoCal and not one in ten will match it locally. Why, I've held it for 18yrs and it's matured nicely. With FMR growing and my original down payment, the property is hard to replace / replicate. Posted to MLS and in 20 days, I got a full price offer :grin:

So imo, ROI is dependent upon the numbers, not the address.

It's all about buying it right on day one.

Thanks J Bread!

The Midwest is a great return for investment.  You mentioned $40k, you could almost get a turnkey property for that price.  Have you thought about leveraging your funds for turnkey?

HI Karen-

Thanks for you email. I am more open to not holding my investment in one place. This is why I'm leaning towards flips and rehabs so I can use that for multi unit or turnkey rental properties...

How much do rents for on a $40K property?

I am new and just trying to figure out the best strategy that will led me to both short and long term goals.

Thanks,

Armand

Originally posted by @Armand P. :

HI Karen-

Thanks for you email. I am more open to not holding my investment in one place. This is why I'm leaning towards flips and rehabs so I can use that for multi unit or turnkey rental properties...

How much do rents for on a $40K property?

I am new and just trying to figure out the best strategy that will led me to both short and long term goals.

Thanks,

Armand

 Great advice above bp really have great community. I'm also a local wholesaler here in Columbus i'm currently seeking to find multi-family homes with great cash flow . will  love to network and talk real estate feel to reach out I enjoy talking about real estate and growing business friendship along the way.

Purchase 40K with ARV 60K, that's pretty thin...

Armand-

Just got back from the buying summit in Vegas.  They specialize in loaded (tenanted/management in place) rent houses.  There were 100s of properties under 75k and some under 35k with cap rates over 10.  Finding good property managers out of state is your biggest challenge, but this community can help with that.

Good luck.

F

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I see @Armand P. your getting a lot of really good information. The rents in different areas of the mid west can vary quite a bit. I do know of properties that are almost turn key at $30 to $40k. That is about all they're worth though also. I have also seen some that the seller is wanting $30k, worth $40k but would take $45k to rehab. I understand your wanting to have investment properties but not quite sure on a flip out of your area unless you partner or JV.

I've been doing this for a while and realize I still have a lot to learn. I would suggest all the things most of us like to say. Read the posts, listen to the pod casts, interact here on BP, join your local REIA group. You might find a local person with the same interests that you have. Starting close to home is really a good idea. You might find someone that you could partner with on a property close to you, to get your feet wet with. If you look for someone with experience that is willing to help guide you on a few it would be profitable in many ways.

You will learn a lot here on BP.  Best of all it's free!

I also wanted to mention that some of the $30k to $40k could bring $650 to $750 in certain areas. It's is all about location. Fully understanding the market is the key. I also know of more areas that owning a $40k your lucky to get $500 per month. 

Great advice James Wise and David Ebbeson, you are talking sense and reality! Armand, network with those two, you can't go wrong. To my surprise, I know David Ebbeson, he is wonderful to work with and an asset to everybody. Keep your eyes open and your ears stiff and happy investing! I will send you an email as soon as I have more time.

Daniella

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