Quote from @Alyxus Nerio: Lawton, Oklahoma- Looking only at extremely cheap properties, as it seems it’s not terribly hard to find renters.

Hi - I am curious what the forums will make of my first deal and whether it is relatively good or relatively marginal. 

There is a reason why I buy properties that cost a multiple of what typical cheap rental properties are going for.

This scenario is determined by the condition of lead-paint and the cleanliness of the unit (remember, we are dealing with dust and paint chips - less dust = lower levels). 

That absolutely eats any potential cash flow.. we moved here because of cheap property taxes and turns out it’s not so cheap after all if you’re an investor lol.

I would love to pull equity of these cheap rentals.

Don't be suckered into buying cheap properties - unelss you know exactly what you are getting into.Here's some copy & paste advice that applies to just about any Midwest rental market:--------------------------------------------------------------------------------------------------Recommend you first figure out the property Class you want to invest in, THEN figure out the corresponding location to invest in.Property Class will typically dictate the Class of tenant you get, which greatly IMPACTS rental income stability and property maintenance/damage by tenants.If you apply Class A assumptions to a Class B or C purchase, your expectations won’t be met and it may be a financial disaster.If you buy/renovate a property in Class D area to Class A standards, what quality of tenant will you get?

If anyone has any suggestions on how to deal with Baselane, the tenant or other creative options ... all ears! 

Purchase price: $15,000 Cash invested: $25,000 Sub to deal - paid the seller and wholesaler $15,000 + $7500 closing costs to assume $84,000 mortgage with a monthly PITI of $575.

But we dont go down the chain to see if the roofer is paying his shingles bill though /  Having Subs you can trust is paramount in this business.. cheap is not always what you waant you want subs that are making money and pay their bills and have credit..