All Forum Posts by: Lisa Phillips

Hi there.

Numbers game is right. I'll take a mold problem if I can purchase the property from 15k-20k, and rents are 850+ a month, and its only a few thousands cosmetic dollars above mold remediation that will fix the problem (~40k all in costs). I'm cool with that.

However, as a new investor, you need to be aware that if you dont have an experienced person go with you (or a really good home inspection), It may be more cash as this sounds like an older home that hasn't been kept up. I wouldn't take a mold problem ON TOP OF everything else needing to be upgraded, but if its one of the few things that needs updating and only other cosmetic items.

Every project is so different, I just try to make sure my all in costs are 35-45k.

Lisa

The riots haven't changed for me - I've honestly had more problems with code enforcement and the water utitility company, than with any tenant. They are terrible, the tenants are fine if you screen properly.

Just found this.

The misinformation campaign continues...

Don't Buy $30,000 pigs in OH

Im just like - still? Its a choice, but just because you dont have the know how or "wiring" to do it, doesnt mean its wrong - it just means it not for you!

Rant Over.

Lisa

Im surprised this thread got this long without me knowing about it!! Next time, send me a mention!

Proof:

pictures

http://www.biggerpockets.com/forums/61/topics/1157...

investors doing extremely well in these neighborhoods (including myself)

http://www.biggerpockets.com/forums/61/topics/1151...

Im 5 years in, and since I do a good renovation before putting tenants in, I honestly average ~400/year in repairs on ALL of them, and I only had 1 eviction, everyone else has been 2+ years tenants, and love it.

Someone one here asked Ben how he would invest in these areas - for new investors - why would you ask someone who only invests in A neighborhoods, about investing in a C/D neighborhood? Would you ask someone who does commercial about expertise in residential? New investors - please ask someone who wants to do what you're doing, in the same asset class and field, if you want advice - Asking someone in Kentucky about Ohio is missing the point - its ALWAYS about location, location, location in ANY asset class.

I started this blog because too many articles where like this, and no one who was successful in this price range was talking about how to do properly and smartly. So, I started my own, but its amazing that people who have failed, or havent done them in the first place, can tell other people about them. But hey - more inventory for me and the others who understand this no-brainer concept. 

Of course, there are caveats, but thats in ALL neighborhoods. You analyze sub30k properties with a different criteria than a high end neighborhood, but you analyze each one nonetheless. Its knowing the criteria that saves you the headaches.

Lisa

@Margaret Boone

 Thanks!!

@Kara Haney  It really is just based on that institutions policy. I am about 50/50 on banks/credit unions (although I have a higher hit rate with small banks and credit unions) on whether they will finance a deal this low. I am a BIG fan now of personal loans. Why? It takes 3 hrs, a couple of pay stubs, 5-7 year loans at 10-13% interest rates- yes, that's high, but A.) since i can't get a conventional mortgage, it works in this price range and B.) I am able to refinance (or consolidate) with another loan every 1-2 years, which significantly lowers the payments and extends the term. I just cleared up ~350/month off 3 different loan products (2 personal, 1 vehicle refinance). I go into detail on my latest newsletter issue if you want more info. 

Love this thread! The proof is in the pudding.

@Adrian Chu  @evin I hear you. I always work in very high cost of living areas, so I have to invest outside of it. Its 100% worth it. That's why I always follow up with DRIVE when we promote/share this strategy :-) Even Sharad invests 45 minutes outside of his zone.

Nice! When you win, we win.

Lisa

Here's The video, which goes into the raising the funds portion, should answer a lot of questions for you about Joe's Journey @Michael Delpier

@Doug B.

I think I remember you shooting me some properties, and I would not have recommended the areas closest around you, either.

I've helped two of my clients for one on ones, who were from new york, get their first rental. 1 purchased in NC, one purchased in PA. They couldnt find anything that was a great "DEAL" in NY, but are both cash flowing $450+ now because they could go outside their backyard. My interview with them is coming soon!!

The thing with new york, the property taxes and tenant friendly laws just dont make this market ideal for cash flow, so to get the great deals, you have to go farther out sea. 

Now, the bad thing is that you're in new york for a sub30k, the good news is that if 1.) you can get a more expensive, but better area all day long IF you just have to stay in NY, but, 2.) if you're willing to step by step figure out how to find these locations, you'll be fine. I actually have a video on it Here!! :-)

Its a huge country, and sometimes the dynamics of where you personally live make decent rental options, if not the best, so you can't go too wrong in either field/class. 

@Eric H.

Same as always in Baltimore. They, and my RIchmond VA, are way better than my OH ones. I still give cbrowne a B+, as they take a little longer than they should to respond, and they still need to add an extra set of hands.

And, thank you cards to city workers in Baltimore...well...I dont know if i am there yet.