Engineer · Philadelphia, PA · Member since 2012 · 75 posts · 14 votes
I would like to hear from people that invest in the houses under $15,000 (not at the auctions) that are for sale everyday. All of the advice that I see on BP is about staying away from the roughest neighborhoods. I, myself, am a landlord in Pennsport, where I can apply all the rules of thumb about tenant screening to my applicants and I get a good pool of candidates to choose from every time I have tenant turnover. However, I see sales everyday on MLS in neighborhoods that would suggest investing will not be a good idea and there are plenty of sales for under $10K even. I would like know what is your exit strategy? If you're landlording, how much cashflow are you expecting every month when you purchase a cheap property? Lastly, if you're not from the neighborhood that you're investing in, how do the neighbors react to your projects?
if you don't mind the section 8 side of investing its doable as you will surely have to have rehab funds and get a tenant in there a.s.a.p. you may even have the ocassional lease-option but you will have to put a little more than spit, gum and glue on those properties. the numbers are the deciding factors for any strategy. just because someone or a group of someones don't favor a particular method of investing in real estate doesn't mean that you must do the same. find your niche(s), what works for you. my coin.