Types of available properties

[Lance Card]

Greetings fellow BPers! (I posted this in the general forum, but thought I'd try here as well since it is local.)

We've been looking for that great deal to begin our buy and hold portfolio and have been coming across a number of property types that our local investor's group has cautioned against purchasing. These properties are much more prevalent which leads me to my questions. Would you invest in any of the following providing that the numbers worked?

• 2 Bed / 1 Bath older than 1930 build
• Modular home
• 3 Bed / 1 Bath older than 1930 build

I appreciate your feedback.

[Becca Summers]

@Lance Card  I would say it depends on the home. If the 1930 homes have been updated with new electrical wiring, plumbing, roof, furnace, windows, the sewer main. Then maybe I'd keep it. However I'd still wouldn't do a 2 bed 1 bath single family home as they don't hit my criteria. I've found the rental rates to be better on a 3 bed 1 bath home for comparable purchase price. 

I wouldn't be against a modular home except for the lending requirements are a bit tougher and the type of tenant modular homes attract. They are nice because you get a bigger property for less. Then again they don't go up in value as quickly as a stick built single family home.