What should I buy?

Question

Hi folks! I have a little money to buy my next buy and hold. There are a few houses on a street where I already have a house. There is a possibility I can get 3 houses for under 10k each but they aren't for sale and I would have to direct market to the owners. I don't know how long it would take and I'm not even sure I would get a response so I could be wasting time. These houses are uninhabitable at the moment. Alternatively I could buy 1 house that requires less rehab. If I buy the 3 houses, I can rehab 1 of them and the other 2 would have to sit until I could afford to rehab them, probably both by the end of next year. These houses would rent for around $500. If I buy a nicer house, I would have to finance but could rehab for under 10k and have it rent ready in a couple months. Probably around $950 in rent and this house will appreciate faster. I'm not even sure the first 3 would appreciate. It's very attractive to me to have 3 houses that would all be free and clear in a year and a half but it would take much longer to get my money back. Any thoughts would be greatly appreciated!

Marshall C. Call II · Answer

Bob, the 2br/1ba houses in this area rent for $500-$600. These homes are close to being taken by the county for back taxes. My brother lives in this subdivision and rents a 2 bed 1 bath for $500 and I have a home on the same street, larger, that I rent for $780 so I know what the rents are. I do my own renovations and did one on the very street these houses are on. It's a lower income area but definitely not a war zone, I am perfectly comfortable having my daughter go there alone. I'm not sure what makes you think I don't have money but maybe just scroll on by if you're not going to answer the question?

Bob S. · Answer

You are not buying anything for 10k UNLESS they need TOTAL reno of 75k or more and are in a war zone. Rent for only 500 a house? NO idea where this is but there is nothing for rent for 500, not even one brs, So this post is very suspect.  If you have no money I am really not sure of the purpose of this post.

Good luck