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Updated about 8 years ago on . Most recent reply

User Stats

59
Posts
41
Votes
Philip Hy
  • Rental Property Investor
  • Plano, TX
41
Votes |
59
Posts

Buy in cheaper in "worse" neighborhoods?

Philip Hy
  • Rental Property Investor
  • Plano, TX
Posted
Regarding the investors with +100 units, are they basically doing it buy buying cheaper properties (<$100k) in "c" and "d" properties and then handing off to a property manager? I've been buying in solid middle class "B" neighborhoods to avoid problem tenants. Zillow shows schools 5 or above. I'm buying for 150k and renting for about $1,400. Putting down 20%. After all expenses, PM fees, I'm getting about $130 cash flow. Learning a lot and investments seem solid, but process seems slow and running out of cash for 20% deposits. Is there anything you would do differently? Buy cheaper houses and let PM deal with problematic tenants? BRRR method seems to only work if you buy in worse neighborhoods?

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