numbers look great!!!

[Ronald Hunt]

Today I got to speak to my good friend @Shawn Holsapple regarding an investment opportunity with great ROI numbers but VERY low income area. Home has been reviewed and literally needs little to no repairs.

The cap rate is 30%. I would like more feedback if you've had a similar situation arise then what would be your take on this situation.  My original goal was to purchase the prop and lease option it to a tenant with the terms stating that the tenant is responsible for all repairs.

[Michele Fischer]

Ronald, not sure how your are leaning, but I'm guessing it will be difficult to lease option in a low income area.   People who can qualify probably don't want to live in that neighborhood.

I focus on buy and hold in a low income area and fight to keep 10 CAP, but it is tighter on the west coast. It's very time intensive, a lot of repairing and replacing the same things over and over. Study up on low income landlording to be able to make an informed decision.