$30,000 homes

[Account Closed]

So I'm from Los Angeles and thinking about investing out of state in the near furure. Just looking around on realtor.com I'm amazed to see homes listed at as low as $30,000 this has me wondering, can one finance these homes with a traditional 20% down? (that wouldn't be much $ to get my feet wet) 

Thanks in advance

[Ben Stout]

Hey there, 

I do a mix of high and low end properties and have many in my portfolio that I bought around the $25k price point. THE MOST IMPORTANT THING................ is not price point. It's not curb appeal. It's management management management management management management. If you don't have a great manager, just hang it up and forget about it. A bad manager will quickly turn those lovely proforma numbers into something unattainable and will frustrate you into sleepless nights. You'll probably give up prematurely after you feel the pain that many of us that have fired PMs know so well. 

For a buy and hold I'll take a great manager with an acceptable proforma ROI on a deal over an amazing proforma ROI with a bad manager any day of the year. Looking over my data from the past 10 years, the difference in ROI I've realized is DIRECTLY correlated to the management over the property. Management is by far your weakest or strongest link.