Where can I find an investment property for around $100k or less

Question

I am looking to get into my first investment property and purchase a duplex for around $100k (open to a suggestion on property type). I am looking at many different cities and can't seem to pin one down.

My top 3 locations right now are:

Cleveland, OH

Memphis, TN

Kansas City, MO

Does anyone have any suggestions on cities that have worked for you?

Matthew Drouin · Answer

@Brenton Arriaga

I guess I have to ask.  Why $100k or less?  Is it because that’s what you can afford?

If you’ve ever read any Robert Kiyosaki, he always says:

“The poor say ‘I can’t afford that’”

“The rich ask ‘how can I afford that?’”

Price what you pay, value is what you get.

So if I was to find you a $100k or less property that was guaranteed to lose you money.  Would you buy it?  What about $50k?  How about $25k?

Conversely, if I was to find you a $1M property that was guaranteed to double your money in 30 days, would you pursue that if lack of capital was not a bottleneck?

Many people think that Berkshire Hathaway is an expensive stock because it’s $500k + a share.  However that’s not really true.  It actually might be a great value stock because of its earnings power and future earnings growth and dividend yield.  However a penny stock could be very expensive because it’s a junk company with no earnings and no earnings growth potential.

What I’m trying to say it this.

Michael Blank is right.  If lack of access to capital was not a bottleneck would that change your thinking?  OPM likes to marry OPT, OPE, and OPO

Other Peoples Time

Other Peoples Experience

And Other Peoples Opportunity

Can you create one of these three aforementioned OPs?  If then, you can focus on true wealth which lies in value, not price!

Travis Biziorek · Answer

Hey Brenton, I can't comment too much on the cities you've listed. $100k for a stable duplex anywhere is tough to come by, I believe.

I'm doing them in Detroit but you're not going to find something on the MLS in that price range... again, not stable and/or rent ready that is.

I'm doing them off market for $65k-$85k and needing $20k-$30k of work to get rent ready. Still, they cash flow like crazy once done.

Let me know if you want to explore or chat about the Detroit market.

Uri Gofman · Answer

There are still some opportunities in the Cleveland market in that price range that could produce very strong cash flow.  You may have to assume some older mechanicals or tired cosmetics to purchase at that price point.  If you have a longer time horizon for your investment, definitely opt for the best location you can get into in the price point.  You can always update the property in the future but you will always be stuck in the location you selected.

Jimmy Bostic · Answer

@Brenton Arriaga Cleveland is probably the best on that list. I would also consider Dayton and Columbus.

Nader Shariff · Answer

Out of the three areas - I would suggest Cleveland Ohio.

However, if you are open to other markets - I would suggest looking into Detroit, Michigan.

I have had a lot of success in Detroit, MI and the market offers - strong returns, low entry price points and a city full of opportunities for growth.

Matthew Masoud · Answer

All 3 of the markets you mentioned are going to be tough to invest in for $100k. Don't buy in D-class areas because you are too focused on price.

I made that mistake many years ago.

Michael Smythe · Answer

@Brenton Arriaga

You might want to follow the "Deep Dive" series we're doing on our BiggerPockets blog about Metro Detroit cities, City of Detroit Neighborhoods and comparing Metro Detroit to other hotspots investors usually consider:

https://www.biggerpockets.com/member-blogs/3094/99854-deep-dive-into-metro-detroit-cities-ecorse

Doubt you'll find this much info for any other market in the country. So, why would you invest remotely anywhere else?

Tim Bee · Answer

People seem to like Detroit on here for some reason.  I would never invest there but you might want to look into it.

Taylor Dasch · Answer

There are a few duplexes in killeen in that price point. Lots of SFH in Killeen and Temple around there and should cash flow fairly well. Just make sure you have someone who knows the market wherever you decide on!

Bob Stevens · Answer

I recently picked up a 3/2 on Priday, all in 65k, rents 1400, 4/2 on Glendale all in 75k rent 1300, Just picked up a 3/2 on Richards , all in 85k, rent 1400, Its ALL about knowledge and your team

All the best

BTW, We are buying everything we can in parts of EAST Cleveland as we know what's coming.

If you know what you are doing D areas can be very rewarding, I was told years ago I was crazy to be buying in certain areas, well pricing has tripled or more on top of the 20% net cap..... Again, team and knowledge is the key

Where can I find an investment property for around $100k or less

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