What should I buy?

[Marshall C. Call II]

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!

[Bob Stevens]

Quote from @Marshall C. Call II:

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!

 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 

[Marshall C. Call II]

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?