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Updated over 10 years ago,
Buy and Hold in rural areas a bad idea?
Hey, I'm looking at a SFH property right now that is being listed at 60k. It's fairly rural so I'm not sure how easy it is to find tenants out in those areas. An interesting thing is that the house must be sold along with another property which is listed at 80k also a 2/1, but it looks like both properties were passed on to a now married woman based on online deed info. So just from the sound of this does it sound like something people would generally have a double-take at? I know each house would have to stand on its own two feet when it comes to making an offer so when looking at it at first glance I figured I might be able to rent $500/month from each property (don't know anything about rural properties or their rent rates). Using the 50% rule I would have to offer 30k for the first home to cash flow almost $100 every month at that rent using a 30 yr loan... The second home if I bid 40k instead of their asking price of 80k i would still only scratch out $50 a month.... These numbers don't make any sense to me since even if i got the properties at half price, I would barely make anything. How do people even make money on SFH if they don't rent out the rooms individually? Don't even know right now haha