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    CHAYOTE23's Avatar
    CHAYOTE23 Posts: 37, Reputation: 0
    Junior Member

    May 1, 2006, 10:39 PM
    Cheap Rental Property
    Where is the best real estate market in the United States (IN,AZ,CA,NY,TX, NV, IA,MO etc.) interms of purchasing cheap rental (Duplex) property and renting the units, but at a purchase of under $50,000.00.
    Interesting in buying cheap property, but looking for rentals that already have tenats living in the units or property and pay rent.
    RickJ's Avatar
    RickJ Posts: 7,762, Reputation: 864
    Uber Member

    May 2, 2006, 03:20 AM
    Let me suggest that you step back a couple steps. Here's a few things to think about.

    1. Absentee management of rental properties is far more difficult than managing properties in your own city. I strongly suggest you look in your own city.

    2. In my city a $50k double will either be in an acceptable neighborhood and need a lot of work - or be just fine, but in a neighborhood where you'll have constant tenant nightmares. Contact a local real estate agent and ask him for listings of all doubles for $60k and under and you'll see what I mean.

    3. Don't look so close at the purchase price. The income is the key factor.

    4. My suggestion to first time rental property buyers is to buy a nice double that you can live in half of - so that a vacancy won't hit you wallet so hard.
    Once your comfortable with how it all works, and sure it's what you want to do, you can move out of your side into a home and rent the one you lived in.

    5. Most lenders will let you use the past income for the property as your income, so if 50k is what you think your limit is because of current cash or income, then just know that this does not really have to be your limit.

    ... gosh, I could go on forever, but think that your best next move should be to contact a local real estate agent and get some listings for doubles and start looking in your own town.
    Fr_Chuck's Avatar
    Fr_Chuck Posts: 81,301, Reputation: 7692

    May 2, 2006, 06:35 AM
    Yes, as a person who owns rental property, unless the property is paid for and you can accepted high repair cost from an management company who gets a percentage for collecting your rent and so on, find something in an area where you live.

    I just bought ( last year) a house from an out of state owner, he had no idea what conditioin his house was in and why he was not able to rent it.

    The last tenant had no electric or water in house for about 6 months, he carried bottled water in to flush the toilet. Since I do plumbing and electric work myself, I bought the house, put on a new roof, new plumbing and new electric in parts of the house. Now I have a nice house that is still in the "bad" part of town but I have people lined up to rent it.

    One of the best rentals is an old big house near a college if you can get it rezoned. You rent out rooms. You can get 3 or 4 times the normal rent if you add it all up, but you have to chace your rent down most of the time.

    My average rental, the people stay their 1 1/2 to 2 years, I have to repaint the entire inside, and have carpent cleaned and/or replaced.
    There is normally 2 or 3 small to medium holes in the wall. And about 1/3 leave in the middle of the night oweing me rent.

    About 1 in 6 have to be evicted which means they live rent free for about 2 plus months while I go though the process of kicking them out.

    The better investment would be a higher end house, where you would have a higher end tenant. Not that you get rich from the rent, but you have a higher resale and that is where the money is, selling it after you fix it up.
    VegasRealEstate's Avatar
    VegasRealEstate Posts: 12, Reputation: 6
    New Member

    May 2, 2006, 11:20 PM
    I don't think you can find any properties for sale in the entire Las Vega Valley for that price. Even 1 bedroom condos are selling for more than that.

    I would suggest contacting Real Estate Agents in cities that you are looking to invest your money in.

    You are always going to hear horror stories about rental properties. I buy properties and rent them out. I have been very successful in that I have had only 1 bad tenant in about 15. You just need to do your homework on your tenants.

    Good luck on your investing career.
    CHAYOTE23's Avatar
    CHAYOTE23 Posts: 37, Reputation: 0
    Junior Member

    May 2, 2006, 11:33 PM
    VegasRealEstate, I would like to thank you for taking the time to answer my question, but I am in the same business similar to what you do because I also purchase properties and rent them out. I currently, am in the process of purchasing my 7th property, but I would like to invest in Arizonia/New Mexico or near California, but I am not sure where to start. I am always online searching and and (MLS Real Estate List) other sites. Maybe you can give me some advice.
    VegasRealEstate's Avatar
    VegasRealEstate Posts: 12, Reputation: 6
    New Member

    May 3, 2006, 12:04 AM
    I would find 5 agents and see which ones can find properties that would be a good investment. The more agents you have looking for you, the better chance you will find a good investment property. Of those agents, you will then know which ones actually have the ability to find good investment properties, which then you can build a relationship with that agent or agents.

    Your financing is very important as well. Make sure the financing you get for the properties make sense. I buy all my investment properties with an option arm, because I won't own the properties for more than 5 years. I try to put down as little cash as I can.

    Hope this helps and if you need any help with financing, let me know.

    Good luck and congrats on the 6 properties!!
    brooks's Avatar
    brooks Posts: 57, Reputation: 2
    Junior Member

    Jul 30, 2006, 11:29 PM
    I won't say where you can buy inexpensive property, but I will say that there are many places where you can buy a three bedroom house for 30K or less.(these would not be junkers either).The key is to stay away from the big cities, and research your market area. Buy, rehab and sell as quickly as possible. If you are located in a diff state or more than 2 hrs away from the property I would not recommend you taking the plunge. Location is everything. A home that would sell in C0. For 200K would sell elsewhere for under 80,000

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