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Updated almost 5 years ago on . Most recent reply

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41
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Darius White
  • New to Real Estate
  • Detroit, MI
21
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41
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Will there be 100k properties in 10 years?

Darius White
  • New to Real Estate
  • Detroit, MI
Posted

New to investing and trying to fully create a 10 year vision or business plan. Currently I plan to save 2k a month. To increase the amount of units I can purchase and cash flow I want to stick with property under 100k. My question is do you think we will continue to have these sort of properties 6-10 years from now or should I start off assuming a higher amount?

Most Popular Reply

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Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
18,560
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Joe Splitrock
  • Rental Property Investor
  • Sioux Falls, SD
ModeratorReplied

@Darius White nobody is giving you the right answer, which is "why does it matter?" Houses could cost $8000 or they could cost $500,000 and that alone doesn't mean they are a good investment. What makes one investment better than another is the cash return. Think of it as if you spend $1 today, how many dollars will that return in future years? The more dollars it returns, the better. Home value appreciation in a given market is mostly determined by supply and demand. The leading factor in demand is jobs, not only quantity but average pay of jobs. Supply is often driven by demand, but supply can run into barriers. For example if you live on an island, there is limited supply of land which drives values higher even if demand is average. 

I hope that makes sense. My point is look for a good investment, not a cheap property. Look for markets that have stable and growing employment, because those are the markets that will have steady rental opportunity.

  • Joe Splitrock
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