The current prices are squeezing me out

[George P.]

During the short time that this housing crisis lasted, i was able to obtain 6 rentals. they were all between 55-80k, SFH's, which currently rent for between $1k-$1,275. all but one have a mortgage, so i had to come up with a significant down payment for each one + rehab costs.

the cost of bring them up to rental condition was between 5k and $25k. (it's amazing that the more experienced i became, the more i put into a house to fix it up, but that's another topic).

anyway, the current market for the same type houses are 80k and above. the filters that i have for the MLS alerts have dried up and they were set for 3 bedroom homes under 90k. I can go into lower income area, but that's not an option for my wife, so we are sticking with the same 2 sq. mile area.

at 80k purchase price i will make some money, but not as much as an investor would want. i do not want to buy more houses just to say i have more houses. at $100k (total, purchase and rehab costs), i'd net around $250/month and that's if it's rented quickly. One major repair and my yearly profit is gone.

I have two short sale offers that have been accepted by the homeowners and have no idea if they will actually happen.

if these two potential deals do not happen, this was the last of my involvement with the rental business.

i need to find other avenues to invest in since i need to do something with my money. I have a (very good) full time job and my contractors are not like J Scott's to get into the flip business. I'd lose money if i do that in a hurry.

I am considering lending money for investment purposes, but have zero experience in that field..

are you experiencing similar issues? feedback/suggestions are welcome.