Midwest $50,000 Houses

[Nicholas Daniels]

I’m 20 years old and I’d like some advice on how to get started in real estate. I’m from the Midwest (Michigan) in a fairly expensive area. The numbers here don’t work as well, but I’ve thought of something and the numbers seem to work great.

I can buy a house for ~$50,000-$60,000 dollars (or oftentimes less) and rent it for $800-900/month. That’s an insane return in my opinion.

My plan was just to pay cash, buy one, fix it up, rent it then pay cash for the next one. (I’m against debt, kinda a religious thing).

So here are my questions.

Let’s say each property I buy cash flows $500/month (I’m paying cash take in mind).

-Should I use a property manager? I’m not very hands on

-Is this a viable strategy? Could I bet (after everything including a 10% property management fee, CAPex, taxes, etc) $500/month.

-Is there issues with tenants I these areas?

-would it be wise to fix the property up before hand?

Thanks!