Posted by Jim IL on February 23, 2001 at 21:29:05:
Mike,
That would depend on what type of investing you are doing.
For someone like me, who does “subject to” deals, Land Contracts, and Lease Options to buy, and sells 90% of everything via a Lease Option may be different than what “works” for you.
I like average neighborhoods, to slightly above.
In my area, the average 3 bedroom, 2 bath home sells for $125k, and market rent is around $1300-$1400/month.
I’ve found that if I can get a good deal with the right numbers on these, say paying NOTHING down, and $800-900/month, then I can move them REALLY FAST!
For the slightly higher price ranged homes, (upper middle class around here), like $150k-$225k, I need to adjust things so that I can compensate for a longer holding time.
But, the end payday is usually bigger, due to the numbers.
If you qare flipping to rehabbers, you need to see what your buyers are looking for, and then get them some at GREAT deals.
I’ll tell you this though, if you get a good deal, no matter the terms, in a nice area, then there will be buyers linging up to get it.
And honestly, I’ll look at any home if the seller is motivated enough.
Take care and good luck,
Jim IL