A lot of people are being misled

[Brice Hall]

What's up with all the low income, cheap property "deals"? "I bought a house for $30,000 and rent it out for $700! I'm going to make a great return!"

You are completely neglecting future CAPEX. What happens when you need a new roof? Furnace? Ac? Floors? Windows? An entire year of what you call "net income" will be gone. Do you ever plan to update anything in the house?

What happens when a bad tenant destroys the place AND doesn't pay rent?

Is there anyone who has done deals like this and has found LONG term success? Math and probability says no. 

[Greg H.]

Originally posted by @Brice Hall:

doesn't take a savant to know.

I'm still waiting for someone to show me the numbers where buying s $30k house and charging $700/month works long term??!! It does not.

And I can say this openly because I DO NOT have any shacks that I need to sell. 

Here is but one of my "shacks"

$28000 all in

$24000 Purchase plus approx. $4000 repairs

Tenants are in second year of occupancy at $745 per month

Taxes: $672 Yr

Insurance $342 Yr

Actual Repair Cost to date:  $12 breaker replaced

Features: Central Air/Heat, Tankless Hot Water Heater, Stainless Steel Appliances, Fenced Yard, Carport, Tile Bathrooms, 3 bed/2 bath

Run the numbers....this is how you make money on a sub 30k property

Not all of the US is high priced real estate.  This property is located approx. 2 1/2 hours west of Austin