Investing out of state

[Bill Schultz]

Is it feasible to believe you can buy properties in other states and sell them owner financed without even seeing them. I watched a webinar from larry goins today and he made it seem pretty simple. I know you can buy cheap property in places like Michigan but what do you with it? If nobody is there who do you sell and rent to? Some people talk about buying houses for $5,000 and renting them for $750 a month. Do people in these depressed areas really have that kind of money? Larrys program talks about buying these kinds of properties all over the country and selling them owner financed and making good money. This cant be as simple and easy as he makes it sound can it?

[Michael Lauther]

I have found that the houses you can buy for $5000 or even $10,000 dollars are in need of substantial rehab. Most of these properties are in areas where a high percentage of properties are rentals not home owners. the key to investing in these properties is to buy right and control rehab costs to get the property ready to rent for under $20,000 if you can get $600 per mont rent, you should net a respectable return if your taxes, ins maint, vacancy and management numbers are reasonable. you could then sell to another investor for $30,000 or keep as a buy and hold. Turn key investors would probably look at your property at the $30k level since the rent and expense would meet the 2% guide for rental income and should be profitable assuming 50% of rent for operating expenses.