Episode 555 of the bigger pockets podcast talks about buying in expensive markets.

They get first what they would rent it for : say $2k and you guys split the profits after monthly expenses (utilities, food, toiletries etc ) This will be inexpensive to start: maybe $5k to $10k if you partner with them.

Cold calling yourself will take a lot time and will fail like mostly a waste until you find a few nuggets, but it is inexpensive.

His courses on trust deed investing and tax lien investing were packed with information, inexpensive and invaluable.

Since it is owner occupied, $2,400 in rent and $1,400 in expenses is about $107 in profit.

One thing to note is that this 50% also includes vacancy and longer-term capital costs, but not debt service (mortgage).So, based on that rule, with a $700/month gross rent, you'll probably looking at about $350/month in expenses over the long-term.That leaves about $350/month, which is what you'd use to pay your mortgage (if you had one) and your profit.That $350/month is about $4200/year.So, if you pay cash ($58K + 3K closing costs), your cash-on-cash return (your ROI) will be about:ROI = $4200 / $61,000 = 6.9%Not a great ROI for a rental property, but certainly better than a savings account these days.Many here (including me) would say that if you could -- in theory -- fully leverage the property (get a loan for 100% of the purchase/rehab costs) and then still make at least $100/month in profit, it's a good deal.In this case, assuming loan terms of 30 years fixed at 6%, your theoretical mortgage payment would be $348/month.

I know quite a bit about home repair and maintenance and I'm extremely interested in eventually doing rehabs but seeing that I'm 18 and have relatively no credit at all and thanks to the credit reform act credit is even harder to come by if your under 21 now so I figured even though Kansas City has some really inexpensive homes when I add in rehab cost I would tie up most if not all my capital on 1 deal and I wouldn't see the return if I'm using the buy and hold strategy for quite some time.

I've seen a lot of new investors do just a little marketing and throw their hands up and exclaim, "THIS DOESN'T WORK! Why would anyone want to sell their house at such a big discount?" There are hundreds of reasons, ...

There are many great teachers/trainers out there that have inexpensive courses.Brian Haskins

Should i buy a inexpensive property to start and flip it for a profit or just go strait to rent houses.