Posted by Skip on May 04, 2006 at 01:30:42:
Hi Tony,
Yes, deals like that are possible in Baltimore, but that doesn’t mean it’s true in any particular case. Where are you getting your numbers from? If it’s from the seller you’d better independently verify them. I hate to use a cliche … but know your market. Become an expert on the area you want to invest in. What are the fair market values? What are the fair market rents?
Also, I don’t know why you say it sounds too good to be true. Buying a property for 76k and renting for $1,000 may provide you with some cash flow (not much!), but properties in that price range are in lower-income areas, and owning rentals there can be difficult. If you are an out of town landlord that presents additional problems.