Like Jon said use Zillow, this happen to the other day, just throw in the main road and scrool around.

I have read many articles about the area, most about how it is the white ghetto, but then I have also read some articles talking about how they are looking to spend 37million on the community to make it nicer, whether it be roads, landscape, etc.

If you expect rents of 1600/month, you should be looking for prices below 150k or so at a minimum, and that's for a cash flow rental (in other words, not an appreciation play where you lose money monthly but expect to sell at a large profit down the road).

After Repair Value: $200,000Closing Costs at time of purchase: $3,717Monthly Holding Costs: $1,622Interest Payments: $905Property Taxes: $537Electricity: $50Water: $30Insurance $100Number of months holding costs: 9Total carrying costs: $16,693Repairs $84,272 + 10% Contingency = $92,700 TASK UNIT Materials Needed Line Item Cost Asphalt Shingles Per Square 30 $6,600.00 Build Deck Per SF 150 $2,700.00 Large Concrete Jobs Per SF 1000 $5,000.00 Install Sod Per SF 2000 $4,700.00 Roll-Off Dumpster Dumpster 4 $1,400.00 Full Demo Per SF 1000 $400.00 Service Call Per Hour 16 $1,360.00 Natural Gas Hot Water Heater - 50 Gallon Per House 1 $710.00 Replace All Supply Lines Per Fixture 4 $800.00 Install/Replace Tub Per Tub 3 $1,050.00 Build Tile Shower Per SF 225 $4,387.50 Kitchen Sink Per Sink 1 $120.00 Bathroom Sink Per Sink 3 $210.00 Kitchen Faucet Per Sink 1 $90.00 Bathroom Faucet Per Sink 3 $210.00 Trim Kit Only Per Tub 3 $390.00 Install/Replace Toilet Per Toilet 3 $510.00 Replace Washer Box Per Box 1 $175.00 Rewire House Per Fixture 100 $10,000.00 Replace Furnace Per Unit 1 $1,800.00 Compressor + Coil Per Unit 1 $2,750.00 Frame Walls Per LF 30 $360.00 Wall Board Per SF 500 $580.00 Non-Wall Board Per SF 500 $630.00 Exterior Door Per Door 1 $800.00 Interior Door Per Door 6 $1,020.00 Replace Window Per Window 20 $5,400.00 Repaint Per Floor SF 1000 $2,250.00 Paint New Sheetrock Per Floor SF 600 $1,560.00 Install Kitchen Cabinets Per linear inch 324 $5,670.00 36" Vanity Per Vanity 3 $690.00 Granite Countertops Per SF 50 $4,600.00 Install Solid Wood (Site-Finished) Per SF 1000 $6,000.00 Install Tile Per SF 700 $3,850.00 Permits Per House 1 $200.00 Refrigerator Per Appliance 1 $1,500.00 Range Per Appliance 1 $1,200.00 Dishwasher Per Appliance 1 $550.00 Microwave Per Appliance 1 $300.00 Washer/Dryer Set Per Set 1 $1,500.00 House Cleaning Per House 1 $250.00 Commission to Realtor at time of Sale 7% - $14,000Interest to Private Lender: $933Offer Price: $37,000Potential Profit: $38,375 --> Some factors about this one…it's on a busy road and there aren't a lot of similar style houses to use as comps, the house does sit on a larger sized lot for the area though.

We've been pretty consistent on everything OVERALL however there's been plenty of bumps in the road (Roof needed replaced and we didn't have it in the original estimate, water service line blew out on two different houses and so on).

Partners can be a great thing when put together correctly, sounds like you are on the road to success and I am happy to know I had a small part in helping you start.Thanks for sharing your story.

This could cause problems down the road with soil erosion near the foundation and that would be bad.

We are searching out local lenders as well and would consider commercial at some point down the road as we are also looking at adding commercial property to our portfolio.Originally posted by @Denise Brown-Puryear:Hello all.  

Lastly, you can always take a cash out refi on the money you personally put in the deal and keep moving down the road with none of your original money invested.   

I don't see a big drop in OC for middle of the road, and entry level housing.