Cities in the US with Inexpensive Duplexes, Triplexes

[Stephanie Medellin]

I see a lot of posts mentioning fairly cheap purchase prices. I've lived in upstate NY, and am now in Los Angeles. I know real estate in upstate NY isn't too pricey, but I wanted to get a feel for some other cities in the US where one could buy duplexes, triplexes, and even 4-plexes for less than $50,000. I'm not talking about markets where every once in awhile there is a fire damaged or severely neglected property at that price, but areas with a good supply of real estate the under $50,000 price range.

Detroit is probably the only place I wouldn't want to go!

[Stephanie Medellin]

Thanks Bryan. Right now I'm not ready to purchase anything. I'm debating the idea of selling my house and purchasing a few rental properties cash, something I should have done back in 2008! I was looking for names of smaller or mid-size cities that may have what I'm looking for so I can start researching. Most likely, I'll be moving to said location, at least temporarily, so I'd like to explore some options.

[Ned Carey]

Baltimore has many small muti unit properties. $50,000 will be a tough, but not impossible number to hit. However the rent vs price is very very good in Baltimore.

[Dan C.]

Definitely in Milwaukee you could spend that much or less to get a duplex. I'm sure many other Rust Belt cities as well.

[Mary B.]

Some markets you might want to check out for your price request are:

St. Louis, MO

Cleveland, OH

Pittsburgh, PA

Flint, MI

Memphis, TN

Houston, TX

to name a few. There are plenty other markets that if you look you will find a deal befitting your niche.

Kudos,

Mary

[Engelo Rumora]

There are some cheap duplexes in Kansas City.

Th further South you go the better.

I find that any duplex North of 50th Street is a train wreck waiting to happen.

Thanks.

[Christian Carson]

This is doable in the Cleveland market, though you'll probably be buying foreclosures that need some rehab. For a marketable tenant-occupied duplex you're looking at something closer to $70k.

[Curt Davis]

why would you want to own something g like this? Bad tenants almost all the time.

[Gerald K.]

Rust Belt: Parts of the northeastern and midwestern US that are characterized by declining industry, aging factories, and a falling population. Steel-producing cities in Pennsylvania and Ohio are at its center.

Maybe that's why the prices are so low. Does that sound like a place you want to live, even temporarily, to invest?

[Andy Ballester]

@Curt davis I just bought a property in pittsburgh for 20000 needs about 5000 in repairs cosmetic, 2bed in C+neighborhood will easily rent for 700 with quality tenents

[Jerry Kisasonak]

@Andy Ballester Find any more deals like that that you don't personally want let me know. I've got buyers!

[Dean Letfus]

Memphis is great in that price range. Rentable areas good cash flow.

[Curt Davis]

there is no such thing as a $20k property in a C+ area, those would be D average at best. Cheap homes normally under $45k usually are bad investments. I have seen this first hand as these investors who buy them within 2yrs are praying for companies like ours to buy them from them. Anyone selling these investments are usually not looking out for their clients.

[Dawn Anastasi]

Originally posted by @Curt Davis:
there is no such thing as a $20k property in a C+ area, those would be D average at best. Cheap homes normally under $45k usually are bad investments. I have seen this first hand as these investors who buy them within 2yrs are praying for companies like ours to buy them from them. Anyone selling these investments are usually not looking out for their clients.

I bought a home in Feb 2012 for $24,900 and it's almost at 2 years. I'm not praying for anyone to buy it from me, I'll hang onto that one for as long as I can get money out of it. Same goes for the ones I bought for $23,000 and $24,000 -- don't want anyone to take those little money machines away from me!

[Derek W.]

Bakersfield California is less than 2 hour drive from LA and has properties that match what you described.

[David Krulac]

@Stephanie Medellin

Any part of the country not on an ocean

[Peter G.]

Panama City/Panama City Beach is an up and coming area with cash flow plus appreciation potential.

[Stephanie Medellin]

Thanks everyone for the suggestions.

@NedCarey I had no idea Baltimore had areas that cheap but after looking up some listings you're right! They look like inner city areas but I realize at that price you're not going to get prime real estate.

@Derek W. I did a quick search on the LA MLS, but all of the properties coming up in Bakersfield are $150,000+. This is a small portion of the listings since our MLS doesn't officially cover Bakersfield, but higher than I'd like. I visited Taft once several years ago when Auction.com had open house weekends at all of the REOs they were going to auction. I remember driving and driving down a country road in the middle of nothing but farmland for at least 20 minutes thinking that we took a wrong turn. There were no other roads, buildings, or cars! They did have some homes starting at $1,000 in town.

[Tim Hoffman]

@Curt Davis , I take exception with your comments that all properties under $50k are in bad areas and people will be praying for someone like you to take them off their hands. I will agree, however, that in that price range you are in older, established areas that have the potential to be going down or maybe just holding their own / inflation increases. I live in Rockford, IL and have been a SFH LL for 15+ years. The last 2 deals I did (2nd half of 2013) were 3BR 1Ba 2 car garage purchased for $33k from estate, put $5k into it and am renting for $895/mo with a lease option at $79,500, in a C+ neighborhood. Deal 2 was a 3BR 1.5Ba 2 car garage purchased for $38k, $7k invested and am renting for $925/mo in a C+/B- neighborhood. Both were purchased from the MLS

[John Ellis]

@Curt Davis Why would your company want to buy them if they were bad deals to begin with wouldn't that be not looking out for your clients?

@Dawn Anastasi A good question would be what are your personal goals: Cash Flow or long term appreciation. For instance in Cleveland I buy SFH and duplexes for cheap fix them up and place a tenant in them. The properties are bought and rehabbed for under 25,000. The cash flow on these properties are good, I have one that I bought for 1000 and put in 17,000 and rent for $850. My plan is $200, which after reading @brandon per door, is very doable in Cleveland as well as other markets I am sure. However, the reality is that these properties will not see huge appreciation over the years. I think the important part for you is to identify why you are looking to invest in RE and what goals you have. I would study a few markets and pick the one you are most comfortable with. I am biased I think Cleveland (Northeast Ohio) is great for investors because of the cheap prices and available tenants. Good luck in your beginnings.

[Curt Davis]

@John Ellis,

John, we never sold them the homes to begin with. They usually purchased them from another company and after a few years of bad tenants, vandalism and a bad rehab from the start they call us and other companies to see if we want to buy their problem from them.

[Ryan Arth]

@John Ellis

However, the reality is that these properties will not see huge appreciation over the years. I would study a few markets and pick the one you are most comfortable with. I am biased I think Cleveland (Northeast Ohio) is great for investors because of the cheap prices and available tenants. Good luck in your beginnings.

I agree completely. I am bearish on the appreciation, even 10+ years out. The cash flow is what makes them work. Probably the same in Buffalo and such.

I think the important part for you is to identify why you are looking to invest in RE and what goals you have

Excellent.

[Dewayne Gammel]

Memphis is a very good area to purchase a multi-family or SFR for an inexpensive price. I personally have bought properties as low as 10k. However the purchase price reflect the amount of rehab you will need.
I feel it's all in how you want to invest: you can buy the 10k house with 20k rehab or the 20k house with a 10k rehab. Both scenarios are equal, except that the tax benefits are different. All up to you!
You want to look for a C+ property that sits on the border of a B+ area. There is a difference in a C+ street or community in a D+ area!
I believe that if you don't like an area of Memphis, for real estate investments, move your search over a block or two and you can find something worth buying!
I live and invest only in Memphis!

[Curt Davis]

Please tell me where you can get a $20k home ( before rehab ) in a C+ area that boarders a B area? I guess you could say its all personal preference but even so, I dont know of any homes that cheap in that good of an area. That would be like saying Frayser is a C+ area when its more like a D average area.

[Dewayne Gammel]

38111(borders and includes university of Memphis area)
38122( Macon and mendenhall area(borders good side of 38117)
38109(Whitehaven, good and bad spots)
38118(Getwell and knight Arnold area, good and bad spots)

Yes Frayser is an average D+ area however it does have some good spots as well as some really really bad spots. So my advice is that you look at the streets on a case by case scenario instead of looking at the areas as a whole.
Example 38117 is awesome but it also has some rough areas. (And I grew up in 38117)
Just my two cents as a local guy who knows Memphis.
I would not be the guy buying property in another city that I'm not familiar with. Unless it was with someone I trusted(and even then I would be hesitant only because it is out of my control and eye sight)
Yes there are plenty of "turnkey" operations that would provide an out of town owner great returns regardless of price and with less hassle. However I stick to my invest local belief.
I think the properties you are referring to Curt Davis are probably in better areas than what I invest, however there are still deals in all the areas of Memphis. Your better areas are still providing 20-30% returns right?

[Nicolas Gonzalez]

Winston-Salem, NC

$30-50,000 can get you $700-800 in rents or $375-450x2 on duplex

Quadplexes $375-450x4 for $110k range