How would an investor work in this market?
The lowest price home in my market is $50,000 (this is the home that has no structural value in a horrible part of town -next to an Amtrak railroad, and it’s almost better to light a match and watch it burn).
A 3 bed 1 bath home that needs paint and carpet will run about $85,000 to bring it up to rental worthy.
The average rent is $600 - $900 for a 3:1
How would you guys work in this type of market?
I would not pay $85,000 for a property that will bring in $600 to $900 in rents. What good is an “investment” that loses money? However, if $85,000 is the market price, with some diligent work you certainly should be able to buy at a discount. What methods are you using to find properties at a discount, i.e. desperate sellers?
Mike
Mike,
I don’t have a method. I’m the “Desperate Buyer.” Do you have any suggested methods?
Being a desperate buyer is definitely a method. Unforunately, it’s the one used by those that fail.
Good Luck,
Mike
Mike,
I would not be the desperate buyer…
You’re suppose to look for motivated sellers who are going to be desperate to get out
not you being desperate, Your going to get yourself in trouble.
You should also look out for that monthly payment
As a rule of thumb you should always at min. Get no less than 10%-12%
At min.
I always look for at least 15% and never less than that.
Jason Sarmiento :deal
are you referring to a 10-12% Cash-on-Cash ROI?