Hello,
I am about to sell my 1st flip house. So I am looking for my next project and came across allot of houses for sale in Reading Pa inner city for 20-30-40K some that cheap for 2-3 unit buildings. Other than fear of visiting these types of places is there something Im missing. Seems like there is a ton of profit there. I guess accepting section 8 would be the way to go to insure rent gets paid. Any advice is much appreciated.
Thanks Rick
It all depends on what you want to do. Yes there are cheap props like that in every town, but you just said it in your post… “fear of visiting these types of places”… Is it worth it? I personally don’t think so. I think there are easier ways to make money in real estate that aren’t near as risky.
I dont have a problem with dealing in inner cities. You just have to understand people in their situation and show respect before demanding respect.
Why I saw it as a potential good place to invest is the low cost of say a 3 unit building and the rent return. Im just looking for hidden nightmares others may have had. A building that is for sale at $40,000 and has 3 rental units that bring in $1,100 a month seems too good to be true. So I assume I am missing something.
I read allot of post about section 8 and I think I would try to accept them.
Thanks for the advice
A building that is for sale at $40,000 and has 3 rental units that bring in $1,100 a month seems too good to be true. So I assume I am missing something.
It’s definitely not too good to be true. By my calculation, the cash flow is only $94 per unit per month, which is only fair. You’ll earn every penny of that dealing with low income tenants in the inner city.
Mike