All Forum Posts by: Peter Ledger

 Even those numbers are way higher than outside of California. I have an $80k home right now getting $1,500 a month in Cleveland. For $250k I have a quad here getting $2,300 a month in rent, and that’s UNDERperforming. Make what you can of where you are at, but I definitely understand why everyone in crazy about Cleveland. 

@Richard Alvarado I agree with @Account Closed. I don't know the Bay area too well, but I'm pretty certain that you won't be able to do anything with $20k.

The only thing I would add to Charity's list is the midwest, especially Cleveland. I live here in Cleveland and people are flying in from California and New York in droves because the cost of entry here is so inexpensive, but the market is hot and stable with an extremely healthy demand for housing from strong working class population.

For $20k here in Cleveland you could pick up a, 3-5 bedroom rehab. I consistently purchase homes for under 20k with rehabs from 15-25k that have ARVs of $70,000 - $110,000k

@Hashim Jakvani There are a number of factors fueling the REI market here: Increased industry(tech and medical), tourism development, and property values.

We have a strong working class population that has put housing in high demand. Nothing stays vacant here.

With specifically Section 8 housing, I think there are more vouchers issued here than there are section 8 units. 

It's a great time to be in Cleveland. Let me know if you have any questions. I love being a tour guide.

@Travis Cox That is exactly what I want to know too... I currently have more than a dozen turnkey rentals that I’m looking to sell. 

@Alexander Schnidt There's a lot of differing opinions out there on what and where is best. What your first step should probably be is define the WHAT, and that can lead you to Where you should probably do it.

If you want to flip, what kind of flips? High end or low entry? If you want to rent, what is more important to you: cashflow or appreciation?

What I can say is that if I were 22 and had your resources, I would look into house hacking. Find a quad that needs some work, buy it with cash, rehab it, live in one of the units, rent out the others, refinance to get your cash back(with a home loan since you live there. The other rents will cover your mortgage), then move on to the next one.

Hey @Debbie Dobbins, it really depends on the area you are looking in. If you're in LA, cashflow is impossible. If you're in the midwest, cashflow is everywhere.

It also depends a lot on WHO you're looking at getting deals from. Are you looking on the MLS, sheriff sales, wholesalers?

The BRRR method that BP promotes is a great one, and is almost the only way to make a grade A neighborhood home cashflow. Another option though is a turnkey rental. For 40-60k you could get an already rehabbed and occupied rental that's getting $1,000 - $1,200 a month in rent.

@Skye Anderson There are some neighborhoods where the house itself would be stolen if they could put it on wheels. We've seen it all...

 Of Course! Message me if you want to look into the Cleveland market. I love showing off this city to folks from out of state.

@Kobi Walsh the first step is to define your strategy. Are you going to buy and hold with a longterm rental strictly for cashflow, or are you looking for appreciation? Or both? Often times the best cashflowing properties are in slower appreciating areas, while the hot appreciating areas are tough to find cashflow.

@Manav Wadhwa I honestly do not know the San Diego market very well, but what I do know is that there are investors flying here to Cleveland FROM San Diego and LA to pick up rental properties. From what I understand, you can't buy a tent under a bridge for $50k in Southern California. But here in Cleveland, for 50-70k, you could pick up a really nice turnkey rental that brings in $1,000-$1,200 a month in rent.

I say your first step then is to look outside of SoCal...