Since the economy is a big topic...What was the last cash deal you made?

Rehabbing, Fix and Flip, Rental Properties
1

I was just wondering because they say the U.S. economy is in shambles and the real estate market is terrible. I was just wondering if there people still purchasing with cash and finding good deals?

What areas were you investing in? How much did you pay? Was it truly a “good deal”?

2

I bought a 2 bedroom house with a two car garage for $20,000 cash! A nearly identical house sold right across the street for $52,000. It needed almost no repairs and I had it rented very quickly. Yes, it was a good deal.

Mike

3

I currently have one under contract scheduled to close on 11/15 for $120k. 3br, 2.5ba townhouse in somewhat affluent middleclass mixed SFH, TH, condo suburban community. Needs less than $10K materials plus sweat equity. ARV about $189K. I already own 2 similar within a few miles renting for $1500/month. In this area this is a pretty good deal.

jmd_forest

4

I bought a 4 unit early sept for 78K, a 5unit on the same street built by the same contractor, same year, sold for 220K after I purchased mine. Mine should gross between 1900-2000 a month. Gonna need around 7K of work though. Almost done with it.

John

5

i did a cash deal for $3,800 i now rent it out for 675.00 a month

6

I purchased a 4/1 on three lots (2 still buildable) for $29,900. A house three doors down without the lots sold for $109k. Its now rented for $895/mo.

7

I bought one REO 3/1 for $29,900 in Sept. put $20,000 in it. ARV is $75,000 and it is now rented for $725 mo.

Bought a foreclosure 4/2 for $38,000 in Sept putting $15,000 in it. ARV is $88,000.

Good deals still available to those with patience.

8

Where do you guys live?? I don’t live in one of the most expensive areas of the country (although hardly the least either–I would say it’s in the middle), but there are no $30,000 houses here that aren’t dangerous slums.

9

That has to be a mobile home?

10

Holdandbuy,
The midwest and south have plenty of areas where you can buy decent houses for <$50K.
This wasn’t a cash deal, but our current deal is for 4 SFHs (3 of them are 2/1 and one is 3/1) for $103K total. Currently rented for $1800/mo.

11

Well I guess technically I live in the south (Florida), haha. If jmd_forest can make it work in New Jersey of all places I think I can do it in central Fla. I will just have to be very patient.

12

In some areas it really is harder to find good deals and the good deals are more expensive. Couple that with the fact I’m picky about what and where I buy and it makes it even tougher. You simply will not find $30K properties in South Jersey unless you’re dealing in Camden or other slum type areas. I try to deal exclusively in the lower end of a reasonably affluent area.

I spend about $400/month on advertising and place flyers in my target areas about 4 times/year. Even so, it has been a year since my last purchase. I’m really hoping this short sales settles. I refuse to buy properties that will not make money.

I’ve been outbid several times in the last year and all of those properties are still on the market at prices that will not sell. One thing I can say is that I’ve made money on all my properties so far; sometimes not enough money, but no losses

jmd_forest

13

Thanks, it’s encouraging to hear someone has managed to develop a system in a “challenging” market.

Years ago I lived in NJ and a friend of mine was interested in buying a foreclosure house (for himself to live in), so I went with him to Irvington and some bad parts of Jersey City to look around. Very depressing neighborhoods, I’m sure Camden is similar.