Here is a big pro tip:
Stop buying on the MLS. It’s too expensive! There is a process called “Subject To” and a similar process called “Seller Financing” that gives 1% or more monthly income.
There are other ways called “SEO” and “Pay Per Click” and “Yard Signs” and so on.
That’s right, you can buy 3 properties for $50,000 “Off Market”. Yes, you get depreciation and tax write offs. And it can be done out of state. These are decent homes in decent neighborhoods. Don’t try this in cheap neighborhoods. It’s too much work.
For instance, This property was bought for $5,000 (Five Thousand Dollars).
Click on images to enlarge Purchase & Sale Agreement (many more examples available).
This is an example of how the numbers work
There are hundreds of people doing these every day around the country.
My experience is the best place to focus on these are the typical places. Dallas, Atlanta, Indianapolis, Columbus. Places where investors are welcome and prices are reasonable.
We’ve had success in WA, AZ, TX, AL, GA.
Oh, I’d not tried in Socal yet, because of the high price point and unfriendly landlord/tenant laws. If someone is buying “off market” in California, please comment.
Isn’t it amazing to see what can be done with investment dollars. Instead of the bank making the money, the investor does. What a thought.
A certain amount of people are willing to sell on Creative Finance, like Subject To, (Subto), Wraps & Seller Finance for various reasons.
It's usually under $15,000 or so in "up front" money, so make sure you have some capital. No need for credit, no need for financing. These properties can be used for a rental, fix & flip, STR, Lease Option, 1031 whatever crosses your mind.
Anybody can research this, it’s been done for over a hundred years. But most investors use a mentor or coach to be trained, just because it speeds up the learning process so much. If you have the time though, you can learn all of this on Bigger Pockets and on the internet.
