All Forum Posts by: Dave Vona

Thanks for the replies.  I figured vacancy could be higher on lower end homes.  I've also heard about more wear and tear but thought the security deposit would be sufficient to cover any damage.  I've also seen some areas that just have low home prices and it doesn't necessarily mean the neighborhood is a war zone. For example,  I see a home in Birmingham, AL for $56K that is considered to be in a B neighborhood. 

Hi, I've been researching real estate investing for the past year and have decided that turnkey is going to be by best path right now. I've looked into a several of the turnkey providers mentioned here on BP as well as on Turnkey Reviews. I notice that the ROI the lower cost homes (<$80K) most of the time have the highest ROI (sometimes 20%+). This ROI is taking into account all of the costs including vacancy, maintenance reserve, taxes, insurance, property management and mortgage. When I look at these numbers I'm inclined to just find several ~$50K properties since that appears to be the best option for cash flow. My question is, what is the downside to buying these properties? Do these properties appreciate more slowly than properties in the $100K and up range? By the way, I'm comparing properties in several different markets - Chicago, Indianapolis, Dallas, Memphis, Birmingham - to name a few.

Thanks,

Dave

Thanks, I really appreciate the tips and great information.  

Hi, I joined BP a few months ago and have been doing a lot of reading (and podcast listening) on real estate investing.  I live in the Denver metro area and I'm looking to invest in a single family home.  My plan is to find a property that needs a little work and to buy it as a rental property.  My friend from work turned me on to real estate.  He just left his job and is now doing real estate full-time.  I'm excited to meet other people in the BP community to discuss ideas and opportunities.  I'll be reaching out soon as I'm looking for a real estate agent.

Thanks,

Dave