$150K to invest - where would you recommend?

Question

If you had $150K to invest, where would you go.

I have several properties in several states and looking to branch out and find a nice $150K home, rent ready that rent for $1200-1400?  Decent areas.

Larry Fried · Answer

@Christine Kankowski

That doesn't strike me as a very good price/rent ratio you are looking for.  Are you looking to cash buy or leverage?

Derrick Craig · Answer

Account Closed

I would use the $180k and buy close to home if I were you, I am sure you could find a deal there and finance the rest, this will allow you to save on PM cost and other cost. But on the other hand if you find the right Property Manager that you can depend on and trust you could turn that $180k investment into a $3k-$4k Cash flowing machine with several properties owned free and clear.

Account Closed · Answer

@Curt Davis

The first ten we did the rehab route. Picked them up for 1900 each, 10k in rehab, roughly better than $500 net / month after PM cost / taxes.

We are know buying homes for roughly 15k that needs paint , flooring, light fix up. Average rent 750 / month.

We else can you get that return?

Account Closed · Answer

Detroit, we are buying for 15k and collecting 750 / month.

Maxwell Lee · Answer

Jacksonville. Would be very good areas. :)

Curt Davis · Answer

@Joseph M

Though the numbers may not be right at 1% rule, the idea is if you buy a home for $150k and it rents for $1,400 for example sake then you should experience less turnover, better tenants who will stay longer and hopefully take care of the home better though none of that is a guarantee.   To buy a 4 unit for $150,000, numbers will look incredible but you will most likely be dealing with lower quality all around on average.

The nicer homes that are more expensive will turn out better long term on average.

@Dan Mullins

With numbers like what you are putting up your surely not dealing with a tk provider.  You must be picking the home up for $3,000 and spending $12,000 on rehab.  Though the numbers obviously look great, I think long term it will not be great but on the other hand, your only risk is $15k, not much to lose there.  I hope it keeps producing.

Joseph M. · Answer

@Christine Kankowski, are you looking to sell your current properties and then buy in another market? Or are you looking to add to your existing rentals?

I also agree with the other posters above that $1200-$1400 rent is not a great deal for a $150k house.

You should only try to buy Great deals. I've have heard that memphis is a good market as @Bogdan Cirlig mentioned. There are some very good deals in Jacksonville for cash flow.

Ohio also seems to have a lot of good cash flow markets. For $150,000 you could probably easily find 4unit properties in many markets.

Lucas P. · Answer

I agree with Larry. You should be renting for at least 1% of your acquisition costs.

Bogdan Cirlig · Answer

turnkey properties? Memphis is one area. Austin TX another.

$150K to invest - where would you recommend?

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