I am currently in the process of purchasing 5 properties from a friend of mine for $45,000. Now these properties are in the condition that you would expect a $9,000 house to be in.
Currently all 5 properties have renters in them. I know that the turnover rate in these properties is high but in my town there is no problem filling them. My friend who owns 45 similar properties is getting calls every day from people looking to rent, so keeping renters in them is not a problem, even in the condition they are in.
I expect all 5 of these house to be paid off in 2.5 years max. I plan on doing small renovations like painting, new floors, and new light fixtures ect. In between tenants in order to raise the cost of rent. I think a reasonable goal would be to raise the rent $100 in each house.
I feel like this is a great investment. I understand that with these houses there will be what seems like a lot of unplanned expenses that pop up.
I guess I’m looking for some advice from some investors that have some knowledge.
Am I missing something?
Is this as good of an investment as I think it is?
What should my future plans with these properties be?
