Investment properties < $100K purchase price

[Ben Hosseinzadeh]

Hi everyone,

I'm an investor from California and am looking to purchase additional properties cash out of state.  I am priced out of California and can't compete with cash buyers here.  I'm looking for markets where I can purchase properties less than $100K.  Do any of you have any recommendations of where to start?  I've heard that Toledo OH is good (from members here), but wanted to learn about other markets.  My primary goal is to have good cash flow and hold long term.

Thanks in advance for your input.

[Jay Hinrichs]

100k can be fine or it can be not so good.

I have one little tidbit for OOS investors..  figure out the median price point of the area and invest at or slighty above. this will give you better area better schools better tenants.

So simple LOGIC will tell you that if the median for a given MSA is say 150k  that a 75K house will be half of the median.. not in a great area does not have a great tenant pool to choose from and will be very difficult for the OOS

if the Median in the area is say 100k which it could be then 80 to 100k could work..  just dont go buying for half or less of median 90% of the time those are the worse neighborhoods and IMHO only appropriate for locals who self manage.